Ford and GlobalFoundries Inc. announced the signing of a non-binding agreement that opens the door for the latter to create more semiconductors for the Blue Oval’s current and future vehicles.
GlobalFoundries is a global leader in feature-rich semiconductor manufacturing and will help Ford tackle the issue of semiconductor supply that has impacted the entire automotive industry. The agreement does not involve any cross-ownership between the 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,” said Jim Farley, Ford president and CEO. “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.”
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Not only will GlobalFoundries make chips for Ford’s current lineup of vehicles but it will also develop new ones to address the growing demand for advanced chips. These will be important to Ford’s future products.
The chips developed as a result of the agreement could include semiconductor solutions for advanced driver assistance systems (ADAS), battery management systems, and in-vehicle networking for automated, connected, and electrified vehicles, says Ford. The two companies will also explore expanded semiconductor manufacturing opportunities to “support the automotive industry.”
Ford said that it wants a say in how semiconductor chips are made, according to Automotive News, though it has no interest in producing them in-house.
“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 GlobalFoundries CEO Tom Caulfield. “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.”
