General Motors Co. and GlobalFoundries have entered into a strategic, long-term agreement for the Malta-based company to supply computer chips for the automobile maker.
Through this agreement, GlobalFoundries will manufacture for GM’s key chip suppliers at GlobalFoundries’ advanced semiconductor facility in upstate New York, bringing a critical process to the U.S., officials said.
The agreement supports GM’s strategy to reduce the number of unique chips needed to power increasingly complex and tech-laden vehicles, the company said. 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.”
Dr. Thomas Caulfield, president and CEO of GlobalFoundries said his company is “committed to working with our customers in new and innovative ways to best address the challenges of today’s global supply chains.
“GlobalFoundries 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.”
U.S. Sen. Charles Schumer called the pact a “first-of-its-kind agreement” that “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.
“I have long said that Upstate New York’s semiconductor corridor will be a major engine powering America’s technological future, and now ‘Made in New York’ chips will help jumpstart the next generation of vehicles for GM across the country.”
Gov. Kathy Hochul said, “We’re making New York State not only the semiconductor capital of the country — but of the globe. This agreement will help to further establish New York state as a major hub for semiconductor manufacturing. With our nation-leading Green CHIPS legislation and the new Governor’s Office of Semiconductor Expansion, Management, and Integration, we are helping businesses like GM and GlobalFoundries expand the chips manufacturing ecosystem in our state, creating jobs and opportunities for generations to come.”
General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at www.gm.com.