US auto group warns of chip shortage, asks government for help

The group wants the US government to allocate funds for chip makers to expand production to cater to the auto sector.

A United States auto industry group is asking for government help as it warns that the global semiconductor shortage could result in 1.28 million fewer vehicles built this year and disrupt production for another six months. The US Commerce Department should dedicate a portion of funding in a proposed bill to expand US semiconductor production to auto sector needs, the Alliance for Auto Innovation said in written responses to a government-initiated review. US President Joe Biden in February ordered several federal agency actions to address the chip crisis and is also seeking $37bn in funding for legislation to supercharge chip manufacturing in the US.