GM & GlobalFoundries Announce Supply Agreement for US Production of Semiconductor Chips

General Motors Co. and GlobalFoundries (GF) have announced a long-term agreement establishing a semi-conductor chip production capacity exclusively for GM. GF will manufacture for GM’s key chip suppliers at its semiconductor facility in upstate New York.

With this strategy, the company say chips can be produced in higher volumes and are expected to offer better quality and predictability.

This agreement supports GM’s strategy to reduce the number of unique chips needed to power increasingly complex and tech-laden vehicles. 

Semiconductors are the foundation of the technologies that are powering the electrification, autonomous driving and connectivity of the auto industry.

GF is one of the world’s leading semiconductor manufacturers. 

Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain, says: “We see our semiconductor requirements more than doubling over the next several years as vehicles become technology platforms. The supply agreement with GlobalFoundries will help establish a strong, resilient supply of critical technology in the U.S. 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 today’s global supply chains,” adds 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 U.S.-based manufacturing for a more resilient supply chain.”

General Motors, its subsidiaries and its joint venture entities. sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojuin and Wuling brands.