Ford Partners With GlobalFoundries To Address Semiconductor Chip Demand

Yesterday, the Ford Motor Company revealed its new strategic partnership with GlobalFoundries Inc. toward advancing semiconductor chip manufacturing in the U.S. in the midst of the worldwide shortage.

GlobalFoundries and Ford signed a non-binding agreement that gives GlobalFoundries the ability to develop semiconductor chips for Ford’s current vehicles, and also ensures both companies can research ways to meet the growing demand for chips in the auto industry.
Both companies said these chips could feature semiconductor solutions for ADAs, battery management applications, and more.

GlobalFoundries Inc is a recognized leader in innovative semiconductor manufacturing, and the company’s collaboration with Ford will advance semiconductor manufacturing and technology development in the United States. This will ultimately boost chip supplies for both Ford and the greater U.S. automotive industry.

“It’s critical that we create new ways of working with suppliers to give Ford – and America – greater independence in delivering the technologies and features our customers will most value in the future,” said Jim Farley, Ford president and CEO. “This agreement is just the beginning, and a key part of our plan to vertically integrate key technologies and capabilities that will differentiate Ford far into the future.”

“GF is committed to building innovative alliances with the world’s leading companies to enable the features in products that are pervasive throughout people’s lives,” said Tom Caulfield, GF CEO. “Our agreement with Ford is a key step forward in strengthening our cooperation and partnership with automakers to spur innovation, bring new features to market faster, and ensure long-term, supply-demand balance.”

The partnership comes in the middle of the ongoing shortage that has left vehicles in Michigan and several other states stuck on lots without semiconductors for modern vehicle use. Production at plants across the U.S. has been stopped at different times throughout the summer and fall due to the chip shortage.

The announcement shows how both companies are dedicated to building novel business relationships to regain supply-demand balance for chips in the auto industry as well as efforts to further inspire technology innovation for the U.S. auto industry. Their partnership efforts utilizes both companies’ strengths to better compete, develop for, and serve customers.