U.S. Rep. Dingell pushes bill to ease chip shortage

WASHINGTON — U.S. Rep. Debbie Dingell introduced a bill Wednesday to address the ongoing microchip shortage that has disrupted auto production worldwide.

The bill — referred to as the Mature Technology Node Resiliency and Manufacturing Act — would approve $2 billion in funding for 2022 to support the production of mature semiconductor technology, which the auto industry relies on.

"The chip shortage is hurting the auto industry, union workers and our nation's competitiveness by the hour," the Michigan Democrat said in a statement. "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."

Dingell added: "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."

The bill does not yet have bipartisan support, a congressional aide said.

The U.S. Senate in June approved $52 billion in government funding for domestic semiconductor production and research and authorized $190 billion to boost U.S. competitiveness with Chinese technology.

The Senate bill, called the U.S. Innovation and Competition Act, awaits action by the U.S. House of Representatives.

Meanwhile, automakers in North America continue to feel a pinch from the chip shortage. AutoForecast Solutions Inc. now estimates that plants on the continent have cut another 106,000 cars and trucks from their production plans because of the shortage.

AFS also estimates that the crisis has reduced worldwide production by 5.6 million vehicles so far, and it projects the number could climb to 6.9 million.