Ford and GlobalFoundries team up to tackle car chip shortages

The brand hopes more US chipmaking will help meet demand.


Ford thinks it has a solution to ongoing car chip shortages: make a deal with one of the world's largest chipmakers. CNBC reports the badge has unveiled a "strategic collaboration" with GlobalFoundries that will boost chip manufacturing and development in the US to improve supply for Ford and other domestic car producers. The non-binding arrangement will have GlobalFoundries look into solutions for components ranging from advanced driver assistance through to EV battery management.

The exact terms aren't clear. However, Ford stressed the team-up "does not involve" any joint ownership stakes.

Any results might not come for a while. It takes time just to repurpose factories and ramp up production, let alone to build any new facilities. Regardless, both sides have a strong incentive to work together. Ford has already slashed production and delayed car orders to accommodate chip shortages, for instance. IWhatever costs it pays could be worthwhile if they help the company meet demand.

GlobalFoundries, meanwhile, could use this to land more business from automakers and ride a surge in car demand. It could also help the semiconductor firm diversify its production away from chips for more traditional computing hardware. This deal might last a while, then, if just because it's mutually beneficial.

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