Ford announced on Thursday it has entered a partnership with GlobalFoundries to develop more computer chips amid a semiconductor shortage.
Ford said the partnership with GlobalFoundries, a leading international semiconductor company, will advance semiconductor manufacturing, technological development and chips for Ford and other auto 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,” Ford President and CEO Jim Farley said. “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.”
Supply shortages have stifled the automobile industry, with companies unable to produce millions of cars expected in 2021 due to the chip shortage.
The announcement said the partnership will fulfill both companies’ goals to tackle the chip supply issue and develop new technologies for the industry.
“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,” GlobalFoundries CEO Tom Caulfield said. “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.”
The nonbinding agreement signed will allow GlobalFoundries to create a semiconductor supply for Ford’s vehicles while developing plans for chips to help bolster the industry.
The partnership comes after nine governors sent a letter to Congress urging subsidies for semiconductor factories in order to combat the supply shortage.
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