Ford partners with GlobalFoundries to address chip shortage

Chip shortages have plagued auto industry

FILE - In this Tuesday, July 27, 2021 file photo, a view of a Ford logo on signage at Country Ford in Graham, N.C. Ford Motor Co. plans to spend up to 230 million pounds ($315 million) to turn a transmission factory in northwest England into a plant that will make electric power units for cars and trucks sold throughout Europe. The carmaker said Monday, Oct. 18, 2021 that the Halewood plant would begin producing the power units, which replace the engine and transmission used in internal combustion engines, by mid-2024. (AP Photo/Gerry Broome, File) (Gerry Broome, Copyright 2021 The Associated Press. All rights reserved)

In an effort to boost auto semiconductor chip manufacturing to address a global shortage hitting the auto industry, Ford has announced a new partnership with GlobalFoundries.

The collaboration aims to advance semiconductor manufacturing and technology development within the United States, aiming to boost chip supplies for Ford and the U.S. automotive industry.

The companies have signed a non-binding agreement that opens the door for GF to create further semiconductor supply for Ford’s current vehicle lineup and joint research and development to address the growing demand for feature-rich chips to support the automotive industry. These could include semiconductor solutions for ADAS, battery management systems, and in-vehicle networking for an automated, connected, and electrified future. GF and Ford also will explore expanded semiconductor manufacturing opportunities to support the automotive industry.

This strategic collaboration does not involve cross-ownership between the two companies.

“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.”

Previous coverage: GM, Ford halt some production as chip shortage worsens


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Ken Haddad is the digital content and audience manager for WDIV / ClickOnDetroit.com. He also authors the Morning Report Newsletter and various other newsletters. He's been with WDIV since 2013. He enjoys suffering through Lions games on Sundays in the fall.