Under a strategic, long-term agreement between General Motors (GM) and GlobalFoundries (GF), the two companies are to establish a dedicated capacity corridor exclusively for GM’s chip supply. GF will manufacture for GM’s key chip suppliers at its advanced semiconductor facility in upstate New York, bringing production to the USA.
GM has previously outlined a strategy to reduce the number of unique chips required to power vehicles that are increasingly complex with more technology. Through the strategy, chips will be manufactured in higher volumes and are expected to offer better quality and predictability, maximizing high-value content creation for the end customer.
Semiconductors are used to power an array of technology that OEMs require for vehicle electrification, autonomous driving and connectivity.
“We see our semiconductor requirements more than doubling over the next several years as vehicles become technology platforms,” said Doug Parks, executive vice president of global product development, purchasing and supply chain at GM. “The supply agreement with GlobalFoundries will help establish a strong, resilient supply of critical technology in the US that will help GM meet this demand while delivering new technology and features to our customers.”
“At GF we are committed to working with our customers in new and innovative ways to best address the challenges of global supply chains,” said Dr Thomas Caulfield, president and CEO of GF. “GF will expand its production capabilities exclusively for GM’s supply chain, enabling us to strengthen our partnership with the automotive industry and New York State, while further accelerating automotive innovation with US-based manufacturing for a more resilient supply chain.”
“This first-of-its-kind agreement between GlobalFoundries and General Motors is going to drive the Capital Region economy forward and ensure Upstate New York remains in the driver’s seat as one of the nation’s hubs for semiconductor manufacturing that is so critical to the supply chain of the auto industry,” said Charles Schumer, US Senate Majority Leader. “I have long said that Upstate New York’s semiconductor corridor will be a major engine powering America’s technological future, and now ‘Made in New York’ chips will help jumpstart the next generation of vehicles for GM across the country.”