February 9, 2023

MALTA, N.Y. and DETROIT—General Motors Co. and GlobalFoundries (GF) reported they have entered into a strategic, long-term agreement that brings a critical process—production of semiconductor chips—to the United States.

Through the agreement, which establishes a “dedicated capacity corridor exclusively for GM’s chip supply,” GF will manufacture for GM’s key chip suppliers at GF’s advanced semiconductor facility in upstate New York, the companies said in a release.

The agreement supports GM’s strategy to reduce the number of unique chips needed to power increasingly complex and tech-laden vehicles. With this strategy, chips can be produced in higher volumes and are expected to offer better quality and predictability, maximizing the creation of high-value content for the end customer, according to the release.

“We see our semiconductor requirements more than doubling over the next several years as vehicles become technology platforms,” said Doug Parks, GM executive vice president of Global Product Development, Purchasing, and Supply Chain, in a statement. “The supply agreement with GlobalFoundries will help establish a strong, resilient supply of critical technology in the U.S. that will help GM meet this demand, while delivering new technology and features to our customers.”

Semiconductors are the foundation of the technologies that are powering connectivity, autonomous driving, and electrification of the auto industry. They have been center stage in the global chip shortage that has impacted automakers the last couple of years.

“At GF, we are committed to working with our customers in new and innovative ways to best address the challenges of today’s global supply chains,” said Thomas Caulfield, Ph.D., president and CEO of GF, in the release. “GF will expand its production capabilities exclusively for GM’s supply chain, enabling us to strengthen our partnership with the automotive industry and New York State, while further accelerating automotive innovation with U.S.-based manufacturing for a more resilient supply chain.”

GlobalFoundries said it is responding to the global demand for semiconductors through a series of strategic long-term agreements with existing and new customers. The company is simultaneously expanding global capacity to meet customer demand in partnership with federal and local governments. Supportive policies like the bipartisan CHIPS and Science Act are encouraging the onshoring of semiconductor production and reestablishing the U.S. as a global leader of this critical technology, the company said.

“This first of its kind agreement between GlobalFoundries and General Motors is going to drive the Capital Region economy forward and ensure Upstate New York remains in the driver’s seat as one of the nation’s leading hubs for semiconductor manufacturing that is so critical to the supply chain of the auto industry. I have long said that Upstate New York’s semiconductor corridor will be a major engine powering America’s technological future, and now ‘Made in New York’ chips will help jumpstart the next generation of vehicles for GM across the country,” said U.S. Senate Majority Leader Charles Schumer, in the release.

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