(WXYZ) — Ford Motor Company announced Thursday it has entered into a strategic collaboration with GlobalFoundries Inc. with the goal of advancing semiconductor chip manufacturing in the U.S. amid the global shortage.
Both companies signed a non-binding agreement that will allow GlobalFoundries to create semiconductor chips for Ford's current vehicle lineup, and also allow both companies to research ways to address the growing demand for chips in the auto industry.
The companies said these chips could include semiconductor solutions for ADAs, battery management systems and more.
GlobalFoundries Inc. (Nasdaq: GFS) (GF), a global leader in feature-rich semiconductor manufacturing, and Ford Motor Company (NYSE: F) today announced a strategic collaboration to advance semiconductor manufacturing and technology development within the United States, aiming to boost chip supplies for Ford and the 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.”
It comes amid the ongoing shortage that has left vehicles in Michigan and several other states stuck on lots without semiconductors.
Production at plants around the country has been halted at different times throughout the summer and fall due to the chip shortage, and there is no sign of the shortage slowing down.