Ford Motor seeks to increase its short- and long-term supply of chips via a new partnership deal with GlobalFoundries, according to a press release by GlobalFoundries on Thursday.

  • The Detroit automaker and New York-based chip supplier announced the signing of the non-binding deal for a strategic partnership to boost the supply of chips to Ford from GlobalFoundries.
  • Officials stated that the partnership could eventually lead to new chip designs for Ford and expand domestic production and supply of chips for the automotive industry.
  • Mike Hogan, GlobalFoundries Senior Vice President, and General Manager of Automotive, Industrial and Multi-Market business, stated that the agreement is part of the multifaceted approach to the company to boost the supply of chips to the automotive sector.
  • Jim Farley, Ford CEO, stated that the agreement is part of their plan to vertically integrate key technologies and capabilities that will differentiate Ford into the future.

The partnership comes as the automakers, including Ford, are struggling through a global shortage of semiconductor chips that led to plant closures over the last year. F down -0.88%, GFS up +5.31%