A non-binding agreement has been signed between Ford and GlobalFoundries that will help the chip maker to perk-up supply and production of chipsets
Amid the global semiconductor shuffle, the US based international automobile firms, General Motors (GM) and Ford have announced their foray into the semiconductor manufacturing business. This massive shortage of chipset, which has already handicapped the automobile industry for a year, would be in better position in the coming years, claims experts. To meet the same, Ford has announced its alliance with GlobalFoundries, which will modernise or rather advance the manufacturing, chips, and technological development for various automobile firms as well as Ford.
A non-binding agreement has been signed between Ford and GlobalFoundries that will help the chip maker to perk-up supply and production of chipsets for Ford’s upcoming vehicles. And to assist the escalating demand of the automobile industry, both the companies have also decided to form cutting-edge R&D centers. For seamless supply of chipsets, General Motors has formed its alliance with at least seven semiconductor makers that includes Qualcomm, STMicroelectronics, Taiwan Semiconductor Manufacturing Co, Renesas Electronics, ON Semiconductor Corp, NXP Semiconductors & Infineon Technologies.
According to an exclusive report of the Economic Times, automobile experts have opined that with the ongoing shrink in sales of semiconductors both Ford and GM have also reported lower sales, while the latter’s sales affected terribly in the China and in the US; a result of depleted inventories due to the chip crunch that forced the plants to stop manufacturing. Due to the lower sales and profits both the companies have decided to foray into semiconductor business that will help them in both the ways.
Ford President and CEO Jim Farley told the media, "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. 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."