U.S. Representative Peter Meijer (R-MI) joined a bipartisan group of his colleagues in urging swift action to provide at least $2 billion in emergency funding to domestically produce semiconductors used in the manufacturing of automobiles, commonly known as “legacy chips.”
Last week, it was announced that the effect of the global semiconductor chip shortage is affecting additional automotive manufacturing plants in Michigan, including temporary layoffs.
Excerpt from the letter:
“We write to express our strong support for at least $2 billion in emergency spending to implement the initiatives authorized in the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act for “mature nodes” also known as ‘legacy chips.’
“The automotive industry is being disproportionately harmed due to the ongoing shortage of legacy chips. A new car may require over 100 semiconductors for touch screens, engine controls, driver assistance cameras and other systems. Because of the semiconductor shortage, the American automotive industry has shut down production lines, laid off union workers or has produced cars with fewer features (i.e., leaving out built-in navigation systems).
“A shortage of legacy chips, commonly used for automobiles, was created due to various changes in supply chains, consumer demand and production capabilities during the pandemic. When vehicle demand increased during the second half of 2020, auto parts suppliers and subsequently auto manufacturers were unable to secure the legacy chips and parts they needed. A fire at a Renesas Electronics Corporation semiconductor plant in Japan, droughts in Taiwan and storms in Texas further exacerbated the global semiconductor shortage.”
Original source can be found here.
