GlobalFoundries and GM Announce Long-Term Direct Supply Agreement for U.S. Production of Semiconductor Chips

General Motors Co. and GlobalFoundries (GF) announced a strategic, long-term agreement establishing a dedicated capacity corridor exclusively for GM’s chip supply.  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 U.S.

This agreement supports GM’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 and are expected to offer better quality and predictability, maximizing high value content creation for the end customer.

Semiconductors are the foundation of the technologies that are powering the electrification, autonomous driving and connectivity of the auto industry, and they have been center stage in the global chip shortage that has impacted automakers 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 U.S. 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,” said 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 U.S.-based manufacturing for a more resilient supply chain.”

GF is responding to the global demand for semiconductors through a series of strategic long-term agreements with existing and new customers and simultaneously expanding global capacity to meet customer demand in partnership with federal and local governments. Supportive policies like the bipartisan CHIPS and Science Act are encouraging the onshoring of semiconductor production and reestablishing the U.S. as a global leader of this critical technology.