Science & Technology

Chip shortage threatens Biden’s electric vehicle program, Secretary of Commerce says

Commerce Secretary Gina Raimondo yesterday built support for a parliamentary bill to undertake China, saying automakers’ grand electric vehicle plans are undermined by a continuing shortage of computer semiconductors.

“The average electric vehicle has about 2,000 chips, which is about twice the average number of non-electric vehicles,” he said, preparing for the Detroit Economic Club, a non-profit business group in the Michigan automotive hub. In his remark, Mr. Lymond said.

“Companies like Ford and GM are competing to gain a foothold in the electric vehicle market, so if we don’t invest in domestic semiconductor innovation at the same time, innovation in the American battery market will be curtailed.” Mr. Lymond said.

Prior to the speech, Lymond also told reporters that Biden’s plan to have half of its new cars electric by 2030 relies on US investment in semiconductor production. “It’s necessary for our American economic competitiveness, we need it to reach our climate change goals, and we need it to create jobs,” she said. Detroit News..

The secretary’s visit to Michigan aimed to strengthen support for a $ 52 billion legislative package to revitalize the US semiconductor industry.

“Creating Useful Incentives to Produce Semiconductors for American Law (CHIPS)”, or “CHIPS for American Law” for short, was passed by the Senate in June as part of a larger bill. However, I have not received a vote in the House of Representatives. Representative.

The world’s semiconductors are mainly made in Asia, especially China and Taiwan. With the pandemic blockade eased and the economy rejuvenated, automakers are dissatisfied with their efforts to meet the stagnation in demand for cars. Due to limited supply, semiconductor companies prioritized electronic companies over automakers. As a result, almost all automakers are experiencing chip-related slowdowns and shutdowns.

The shortage has already put the brakes on some of the famous EVs.

In August, Ford Motor Co. told customers that a shortage of chips would postpone delivery of its flagship EV, the Mustang Mach-E, for several weeks, and General Motors Co. temporarily suspended its Detroit plant to manufacture bolt EVs. Closed. Also this summer, electric truck maker Rivian Automotive cites semiconductors as the reason for the delay, and its output remains very slow.

A Commerce spokesman said the numbers quoted by Lymond (EVs have twice as many chips as traditional cars) came from discussions with automakers. “We believe it’s a reasonable average,” said a spokesman.

A recent study by IDTechEx, a UK-based consultancy, found that Estimated EVs require more than twice as many semiconductors as their internal combustion engine counterparts, primarily because EVs require much more use of power electronics.

Analysts said Lymond was right that EVs needed more semiconductors, but did not necessarily agree that it meant that electric vehicles were uniquely vulnerable to their shortages.

“EVs, especially those designed on EV-only platforms, generally have a lot of electronic content and need more chips,” said Alan Baum, a Michigan-based car forecaster studying electric vehicles. I am saying.

But he said, “EV design is important, allowing for better features and more efficient use of the chip, even with a clean sheet approach like Tesla, or even the new platforms of GM, Ford and VW. I added.

Tesla Inc, an electric vehicle manufacturer. Are less likely to face chip-related production problems. According to Baum, Tesla’s design “does centralized calculations in one place in the car, rather than distributing them across different vehicle systems,” requiring fewer chips.

Tesla’s rivals are addressing chip shortages by being incorporated into the supply chain. Earlier this month, Ford reached an agreement with manufacturer GlobalFoundries to manufacture chips, and GM announced that it would work with Qualcomm on a similar deal with NXP Semiconductors NV.

Reprinted from E & E News With the permission of POLITICO and LLC. Copyright 2021. E & E News provides essential news for energy and environmental professionals.

Chip shortage threatens Biden’s electric vehicle program, Secretary of Commerce says Chip shortage threatens Biden’s electric vehicle program, Secretary of Commerce says

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