General Motors Co. and GlobalFoundries have entered into a strategic, long-term agreement for the Malta-based company to supply computer chips for the automobile maker.
Through this agreement, GlobalFoundries will manufacture for GM’s key chip suppliers at GlobalFoundries’ advanced semiconductor facility in upstate New York, bringing a critical process to the U.S., officials said.
The agreement supports GM’s strategy to reduce the number of unique chips needed to power increasingly complex and tech-laden vehicles, the company said. With this strategy, chips can be produced in higher volumes and are expected to offer better quality and predictability, maximizing high value content creation for the end customer.
Semiconductors are the foundation of the technologies that are powering the electrification, autonomous driving and connectivity of the auto industry, and they have been center stage in the global chip shortage that has impacted automakers the last couple of years.
“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. “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.”