Letter to The Honorable Pete Buttigieg, Secretary of US Department of Transportation - Semiconductor Chip Supply

Letter

Dear Secretary Buttigieg:

As you are aware, critical sectors of our economy depend upon the consistent and timely supply of semiconductor chips. While the global chip supply shortage would be inconvenient at any time, it is particularly challenging and highly disruptive to the freight rail and transit manufacturers, who provide the equipment that helps move the goods and people our nation depends on during this period of peak goods movement, considerable supply chain challenges, transition to zero-emission vehicles, and ongoing attempts to recover from the negative impacts of the COVID-19 pandemic.

We write to request the U.S. Department of Transportation's active support in ensuring the freight rail and transit manufacturers are able to procure the necessary amount of chips and related critical components to carry out the goals of the Bipartisan Infrastructure Law, address national logistics and supply chain disruptions, and most importantly, ensure the safety of passengers and the communities served by rail and transit vehicles.

Freight rail and transit providers and manufacturers are already experiencing the effects of the global chip shortage. Receiving a higher allocation of chips will help ensure goods movement, quicken the transition to zero-emission fleets, and to protect the utilization of essential safety equipment or components - including but not limited to, advanced braking systems, Positive Train Control systems, and onboard and wayside/roadside communications.

Resolution of existing allocations involves significant capital investments to add new capacity. Depending on the industry, it requires two to three years' time; therefore, all future needs are compromised until new capacity is online or demand decreases. A persistent issue since 2019, the current situation is not expected to improve until 2024. In the meantime, it is of the utmost importance that the freight rail and transit manufacturers receive chips for safety and mission-critical parts and components.

We respectfully request a briefing from the Department in the near-term to discuss appropriate responses. Thank you for your time and attention in prioritizing and protecting the essential services of freight rail and transit manufacturers. We look forward to working with you in addressing this issue.

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