Ford Motor plans to increase its short- and long-term supply of semiconductor chips through a new partnership with GlobalFoundries.
The Detroit automaker and New York-based chip supplier on Thursday announced the signing of a nonbinding agreement for a strategic partnership that aims to increase the supply of chips to Ford from GlobalFoundries.
Officials said the tie-up could eventually result in new chip designs specifically for Ford and an increase in the domestic production and supply of chips for the overall automotive industry.
The partnership comes as automakers such as Ford are still battling through a global shortage of semiconductor chips that has sporadically caused plant closures for the past year. It also follows the Biden administration urging companies to onshore manufacturing supply chains, including semiconductor chip.