GM, GlobalFoundries announce semiconductor chip supply agreement

General Motors Co. and GlobalFoundries have announced a strategic, long-term agreement establishing a dedicated capacity corridor exclusively for GM’s chip supply. GF will manufacture for GM’s key chip suppliers at GF’s semiconductor facility in upstate New York.

This agreement supports the automaker’s strategy to reduce the number of unique chips needed to power increasingly complex and tech-laden vehicles. With this strategy, chips can be produced in higher volumes.

“We see our semiconductor requirements more than doubling over the next several years as vehicles become technology platforms,” said Doug Parks, GM executive vice president 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 U.S. that will help GM meet this demand, while delivering new technology and features to our customers.”