A US auto industry group reportedly has asked the Biden government to help as it warned the global semiconductor shortage could result in 1.28m fewer vehicles built this year and disrupt production for another six months.

According to Reuters, in written responses to a government-initiated review, the Alliance for Auto Innovation said the US commerce department should dedicate a portion of funding in a proposed bill to expand US semiconductor production to auto sector needs.

The report noted President Joe Biden had in February ordered several federal agency actions to address the chip crisis and was also seeking US$37bn in funding for legislation to ‘supercharge’ chip manufacture in the United States.

Some funding should “be used to build new capacity that will support the auto industry and mitigate the risks to the automotive supply chain evidenced by the current chip shortage,” AAI chief executive John Bozzella, wrote, according to Reuters.

The group said the US government could specify “a particular percentage – that is reasonably based on the projected needs of the auto industry – be allocated for facilities that will support the production of auto grade chips in some manner”.

Semiconductor shortages hit automotive output