The two companies announced a non-binding agreement that could involve increasing the production capacity of Ford’s current lineup and conducting joint research and development on several categories of chips that are likely to be the key to future cars, such as battery management systems and self-driving systems.
Over the past year, a global chip shortage has led Ford and other automakers to limit vehicle production. Most companies have directed the chips they receive to their most profitable vehicles. It has led automakers to explore ways to increase access to chips.
Majority owned by Abu Dhabi’s Sovereign Wealth Fund, GlobalFoundries (GFS) was listed this year as it sold a stake in its business in a $ 26 billion listed offering. The company has said that some of the $ 2.6 billion raised in the trade will go to building another chip factory at a location in Malta, New York.
Ford (F) and GlobalFoundries did not disclose any terms of the agreement or say whether Ford provided financing or other commitments to reserve capacity at any of GlobalFoundries’ current or future factories. The two only said that the “strategic cooperation” does not involve cross-ownership between the companies.
“We hope Ford and GlobalFoundries will join forces to increase supply in a more formal way to support our current car range and our future needs,” Ford Vice President Chuck Gray said in an interview.