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General Motors and GlobalFoundries announced a long-term agreement “establishing a dedicated capacity corridor exclusively for GM’s chip supply”.

GF will manufacture for GM’s key chip suppliers at its semiconductor facility in upstate New York, bringing a critical process to the US from Asia.

This helps GM’s plan to reduce the number of unique chips needed to power increasingly complex and tech laden vehicles. Chips can be produced in higher volume and are expected to offer better quality and “predictability, maximising high value content creation for the end customer”.

“We see our semiconductor requirements more than doubling over the next several years as vehicles become technology platforms,” said Doug Parks, GM’s head of global product development, purchasing and supply chain. “The supply agreement with GlobalFoundries will help establish a strong, resilient supply of critical technology in the US which will help GM meet this demand while delivering new technology and features.”

Thomas Caulfield, president and CEO of GF, said: “[We] will expand production capability exclusively for GM’s supply chain… while further accelerating automotive innovation with US-based manufacturing for a more resilient supply chain.”

GF said supportive government policies like the bipartisan CHIPS and Science Act were “encouraging the onshoring of semiconductor production and reestablishing the US as a global leader of this critical technology”.

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By GlobalData