An auto trade group has estimated that because of the chip shortage, there could be 1.3 million fewer vehicles made in the United States in 2021, a drop of more than 10 percent from pre-pandemic levels.
The senators told Hsiao “what we are hearing at this point is that the risk of shortages clearly has extended into 2022, despite the considerable efforts in Taiwan to augment production.”
Last month, Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, said the auto chip shortage will gradually tail off for its customers from this quarter, but that it expects overall semiconductor capacity tightness to extend possibly into 2022.
TSMC declined to comment on the letter.
“Demand for vehicles — from cars to commercial trucks — is now up, yet the lack of semiconductor chips is preventing this renewed demand from being met,” the senators wrote.
“At a time when our manufacturers should be adding extra shifts, they have had to idle U.S. plants or curtail production. The U.S. is now the most impacted region in the world.”
The senators offered Taiwan help in addressing ongoing pandemic-linked issues.
“As policy leaders, we share a keen understanding of the challenge your country is facing and appreciate the steps you are taking to protect both the human and economic health of your country,” they said.
In June, the United States sent Taiwan 2.5 million COVID-19 vaccine doses, more than three times the initial allocation of shots for the island.
The senators said they backed “President [Joe] Biden’s efforts to make excess vaccines available to Taiwan.”