The agreement aims to build and strengthen a collaborative model to accelerate the next wave of innovation in automotive chip design, according to GF.

 November 29, 2021

MALTA, N.Y. and DEARBORN, Mich.—Semiconductor manufacturer GlobalFoundries Inc. (GF) and Ford Motor Company will collaborate to advance semiconductor manufacturing and technology development within the United States, as they set their sights on boosting chip supplies for Ford and the U.S. automotive industry, according to a release from GF.

The companies recently signed a non-binding agreement that is said to open the door for GF to create further semiconductor supply for Ford’s current vehicle lineup, while also giving the go-ahead for joint research and development. Their aim is to address the growing demand for feature-rich chips to support the automotive industry. According to GF, these chips could include semiconductors for ADAS (advanced driver assistance systems), battery management systems, and in-vehicle networking.

Global Foundries and Ford will also explore expanded semiconductor manufacturing opportunities to support the 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 Ford President and CEO Jim Farley, in the release. “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, in the release. “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.”

Global Foundries said the announcement is consistent with both companies’ commitment to build innovative business relationships to regain supply-demand balance for chips in the auto industry, as well as efforts to further accelerate technology innovation for the U.S. auto industry. The collaboration is said to leverage both companies’ strengths to better compete, innovate, and serve customers, and does not involve cross-ownership between the two companies.

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