Ford, GlobalFoundries team up to address semiconductor shortage in US auto market

Ford manufacturing facility

Ford has announced that it has inked partnership with GlobalFoundries Inc. (GF) to increase chip supplies in the United States after being hampered by the global semiconductor supply shortage.


  • What is the agreement between Ford and GlobalFoundries made up of?

    The partnership includes chip supply for Ford and joint research and development between the two brands.
  • Who is GlobalFoundries?

    The company is a global brand known for manufacturing feature-rich semiconductor products.
  • In a statement, the Blue Oval brand and the semiconductor manufacturer has entered into a non-binding agreement “that opens the door for GF to create further semiconductor supply for Ford’s current vehicle lineup and joint research and development to address the growing demand for feature-rich chips to support the automotive industry.”

    The American carmaker said that it could include semiconductor solutions for advanced driver assistance systems, battery management systems, and in-vehicle networking for an automated, connected, and electrified future.

    Ford manufacturing facility

    “GF and Ford also will explore expanded semiconductor manufacturing opportunities to support the automotive industry,” Ford noted in a statement.

    “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 Chief Executive Officer (CEO) Jim Farley was quoted as saying.

    “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,” he added.

    Ford manufacturing facility

    Meanwhile, GF CEO Tom Caulfield expressed the company’s commitment to “building innovative alliances with the world’s leading companies to enable the features in products that are pervasive throughout people’s lives.”

     “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,” he added.

    Further, the collaboration will also leverage both companies’ strengths to better compete, innovate and serve customers.

    “This strategic collaboration does not involve cross-ownership between the two companies,” Ford concluded.

    Photos from Ford

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