Nov 18 (Businesshala) – Ford Motor Company (FN) and chip maker GlobalFoundries Inc (GFS.O) said on Thursday they plan to work together to boost supplies for the automaker’s vehicles and the broader US auto industry. There are, but few details about it are included in the deal.
The two companies announced a non-binding agreement that could include increasing production capacity for Ford’s current lineup and conducting joint research and development on several categories of chips that could be important for future cars, such as Battery-management system and self-driving system
Over the past year, global chip shortages have caused Ford and other automakers to cut vehicle production. Most companies have directed the chips they receive to their most profitable vehicles. This has prompted automakers to look for ways to increase access to chips.
The majority-owned Abu Dhabi sovereign wealth fund, GlobalFoundries, went publicly traded this year after it sold a stake in its business for a $26 billion initial public offering. The company has said that some of the $2.6 billion raised in the deal will go toward building a second chip factory at a site in Malta, New York.
Ford and GlobalFoundries did not disclose any terms of the deal or whether Ford was providing funding or other commitments to reserve capacity at any of GlobalFoundries’ existing or future factories. The two merely stated that the “strategic collaboration” does not involve any cross-ownership between the companies.
“We hope that Ford and GlobalFoundries will work together to increase our current vehicle lineup and supply in a more formal way to support our future needs,” Ford Vice President Chuck Gray said in an interview.