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Ford to the Rescue for ending Chip Shortage

On Thursday, Ford and chipmaker GlobalFoundries said that they would collaborate to increase supply for the automaker’s vehicles and the broader US auto sector but provided few details about the agreement. Instead, the two companies announced a non-binding agreement that could increase production capacity for Ford current lineup and conduct joint research and development on several chip categories that are likely to be important in future vehicles, such as battery management systems and self-driving systems.

A global semiconductor scarcity has forced Ford and other automakers to reduce vehicle output during the last year. The majority of businesses have allocated their chips to their most profitable cars. As a result, automakers are looking for ways to improve chip access.

GlobalFoundries (GFS), which is majority controlled by Abu Dhabi’s sovereign wealth fund, went public this year when it sold a stake in its firm in a $26 billion initial public offering. According to the business, some of the $2.6 billion raised in the purchase would be used to establish a second chip facility in Malta, New York.

Ford and GlobalFoundries did not provide any details on the agreement, including whether would provide funding or other commitments to reserve capacity at any of GlobalFoundries’ present or future factories. The two said that there is no cross-ownership between the companies in their “strategic collaboration.” Vice President Chuck Gray said, “We hope Ford and GlobalFoundries will team up to grow the supply in a more formal way to support our current vehicle lineup and our future needs.”

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