After a year of battling a chip shortage that has cost valuable vehicle output, Ford Motor Co. on Thursday said it has signed an agreement to collaborate on production and technology advancements with chip supplier GlobalFoundries Inc.
Ford said in a release the "strategic collaboration," which does not include cross-ownership between the companies, will "advance semiconductor manufacturing and technology development within the United States, aiming to boost chip supplies for Ford and the U.S. automotive industry."
GlobalFoundries, or GF, is based in Malta, New York, and has 14 locations on three continents, according to its website. The company says it is "one of the world's leading semiconductor manufacturers."
The chip supply issue affecting all automakers has been ongoing since the start of the year and its effects are expected to last into 2022. The shortage will cost $210 billion in lost revenues this year, according to the most recent estimates from global forecaster AlixPartners LLP. The firm expects the industry to lose production of 7.7 million vehicles this year.
A non-binding agreement between Ford and GF would enable further semiconductor supply for Ford's current vehicle lineup and joint research and development on chips that apply certain features in a vehicle, like in-vehicle networking, the automaker said.
The two companies would also look at expanding semiconductor manufacturing.
