General Motors and chipmaker GlobalFoundries announced on February 9, 2023 a long-term agreement for GM to secure USA-made processors, Reuters reported.
The deal
- GlobalFoundries said the agreement, for at least three years, was the first of its kind.
- It reserves dedicated capacity for GM’s key chip suppliers at GlobalFoundries’ fab in upstate New York.
- GM said its semiconductor needs are expected to more than double in the next several years.
The deal came two days after President Biden praised the $52 billion CHIPS and Science Act in his State of the Union address. Chip shortages had forced automakers to cut millions of vehicles from production during the pandemic.
“This is the automaker going right to the manufacturing foundry, reserving the capacity for their needs.”
Tom Caulfield, CEO, GlobalFoundries
FAQ
Where will the chips be made?
At GlobalFoundries’ existing fab in upstate New York.
How long is the deal?
At least three years.
Why does GM want it?
To avoid shortages as its chip needs more than double.
Source & credit
Source: Reuters via KFGO, February 9, 2023: “GM inks deal with GlobalFoundries to secure U.S.-made chips”.