Through this first-of-its-kind agreement, GF will manufacture for GM’s key chip suppliers at GF’s advanced semiconductor facility in upstate New York bringing a critical process to the US.
This agreement supports GM’s strategy to reduce the number of unique chips needed to power increasingly complex and tech-laden vehicles and it means that chips can now be produced in higher volumes with better quality and predictability, maximising high value content creation for the end customer.
Semiconductors are powering the electrification, autonomous driving and connectivity of the auto industry, but supplies have been affected by the global chip shortage that has impacted automakers over the last couple of years.
“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 US 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,” explained 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 US-based manufacturing for a more resilient supply chain.”
“This first of its kind agreement between GlobalFoundries and General Motors is going to drive the Capital Region economy forward and ensure Upstate New York remains in the driver’s seat as one of the nation’s leading hubs for semiconductor manufacturing that is so critical to the supply chain of the auto industry,” said US Senate Majority Leader Charles Schumer.
New York Governor,Kathy Hochul, added, “This agreement will help to further establish New York State as a major hub for semiconductor manufacturing.”
