"Due to Semiconductor Shortage... US Auto Production May Decrease by 1.28 Million Units This Year"

[Asia Economy Reporter Jeong Hyunjin] The Alliance for Automotive Innovation (AAI), a U.S. automotive manufacturers' group, announced on the 5th (local time) that the global semiconductor shortage could reduce U.S. automobile production by 1.28 million units this year.

According to major foreign media, AAI warned in its review comments on the government's semiconductor production increase plan that production disruptions due to the shortage of automotive semiconductors are inevitable this year and the impact could continue into the first half of next year. AAI represents virtually the entire automotive industry with manufacturing plants in the U.S., including General Motors (GM), Ford, Hyundai Motor, Volkswagen, and Toyota.

AAI stated that government support is urgently needed as production disruptions caused by semiconductor shortages are unavoidable, and argued that part of the funds approved by Congress last year for research and design support to increase semiconductor production should be allocated for the automotive industry. John Bozzella, CEO of AAI, also emphasized that a certain portion of the federal budget to be executed under the 'CHIPS Act' should be used to establish production facilities for automotive semiconductors to minimize threats to the automotive parts supply chain.

Earlier, President Joe Biden issued an executive order in February to investigate the supply chains of four key products, including semiconductors, over 100 days. The U.S. Congress also passed the 'CHIPS Act' in January, which provides federal financial support to enhance the competitiveness of the semiconductor industry.

This content was produced with the assistance of AI translation services.