General Motors inks agreement with GlobalFoundries for sole U.S. semiconductor production

General Motors (GM) and GlobalFoundries have signed a long-term agreement to establish exclusive production capacity of semiconductor chips in the United States. The companies are calling it an industry first and it comes in response to the global shortage of semiconductor chips that has affected the automotive industry, including GM.

Under the agreement, GlobalFoundries will dedicate its semiconductor production facility in upstate New York exclusively to key auto suppliers of GM. This will ensure a stable supply of critical technology for GM, while also enabling the company to offer new technology and features to its customers.

Doug Parks, GM’s Executive Vice President of Global Product Development, Purchasing, and Supply Chain, stated that “the agreement with GlobalFoundries will help establish a strong and resilient supply of critical technology in the US, allowing GM to meet the demand for semiconductors while delivering new technology to its customers.”