Dingell Introduces Legislation to Address Automotive Semiconductor Chip Shortage

Press Release

Today, Congresswoman Debbie Dingell (MI-12) introduced legislation to address the semiconductor chip shortage by increasing incentives to invest in facilities and equipment to domestically manufacture critical chip components. The Mature Technology Node Resiliency and Manufacturing Act of 2021 would authorize $2 billion for fiscal year 2022 to fund the production of mature semiconductor technologies in the United States, important to the automotive, defense, and other manufacturing industries.

"The chip shortage is hurting the auto industry, union workers, and our nation's competitiveness by the hour. Within the last few months, many auto plants in the U.S. have shut down for lack of parts, workers are struggling to make ends meet or are being laid off, car prices are skyrocketing, and consumers are feeling the impact," said Rep. Dingell. "Robust funding for domestic semiconductor manufacturing is critical to ensure we stay at the forefront of innovation and technology -- especially in the auto industry -- and aren't relying on international competitors for supplies. My home state of Michigan is the center of the auto industry, and I'm working with all of my colleagues on both sides of the aisle to address this crisis head on."

The ongoing semiconductor chip shortage has forced U.S. auto manufacturers to cut production, impacting workers and suppliers. Additionally, the Alliance for Auto Innovation found that if the shortage continues as it is, there could be 1.28 million fewer vehicles made in the U.S. in 2021. The shortage is also set to cost the global automotive industry $110 billion in revenue in 2021, lowering the global vehicle output by 3.9 million vehicles. The United States made 37% of global chips in 1990, but now that number is around 12%. In June of 2021, the U.S. Senate advanced the U.S. Innovation and Competition Act, a comprehensive package to help mitigate this crisis, including an identical provision led by Michigan Senators Stabenow and Peters to provide the right incentives to increase American manufacturing of these crucial manufacturing components.

Dingell has long been a proponent of domestic manufacturing, most recently introducing the U.S.A. Electrify Forward Act and the Advanced Technology Vehicle Manufacturing (ATVM) Future Act to advance the development of domestic electric vehicle manufacturing and supporting President Biden's Executive Order to secure supply chains for essential goods, including automotive semiconductor chips and large capacity batteries used by electric vehicles.

To view the full text of the bill, please click here.

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