The US Senate has approved a bill to invest $50 billion into domestic semiconductor chip manufacturing.
The global semiconductor chip shortage continues to cripple the auto industry. Used to power electronics and key components in cars such as infotainment displays and power steering, the lack of chips has forced manufacturers to temporarily remove key features from new models.
Some versions of the Chevrolet Silverado 1500 and GMC Sierra 1500, for example, are being built without an engine start/stop feature and the Ford F-150 is being manufactured without a fuel management module. Deliveries of the 2022 Chevy Colorado And GMC Canyon have also been halted and Subaru was forced to suspend all American production.
You can also blame the semiconductor shortage for delaying deliveries of the Ford Bronco. Automakers have been begging the US government for help and there could finally be light at the end of the tunnel.
The Detroit Free Press reports that a new bill has been approved by the US Senate to invest more than $50 billion into domestic production of semiconductor chips that are in short supply across the auto industry. The legislation also approves a $2 billion investment in older generation semiconductors used in auto manufacturing and pushes federal government agencies to purchase American-made products in contracts.
It's part of a wider $250 billion bill known as the "US Innovation and Competition Act" that prioritizes American manufacturing, technology, research and development to compete against China's technology industry.
The semiconductor shortage is expected to cost the global automotive industry a whopping $110 billion in revenue losses this year, but the crisis is far from over as BMW expects the shortage to end within the next two years. Since the semiconductors used in the auto industry are manufactured overseas, the $50 billion investment will enable semiconductor fabrication plants to be opened in the US, reducing the chances of a similar chip shortage happening again in the future.