Ford and chipmaker announce noncommittal “partnership” to alleviate shortages

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  1. Calliers

    Calliers Administrator/Editor Staff Member

    Oct 12, 2004
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    In an effort to combat the ongoing global chip shortage, chipmaker GlobalFoundries and the Ford Motor Company have announced a "strategic collaboration" today, both via press release and coverage in The Wall Street Journal. The "non-binding agreement," according to the release, "opens the door" for GlobalFoundries to deliver more chips to Ford in the short-term, while promising collaboration on future chips for cars.

    "These could include semiconductor solutions for ADAS, battery management systems, and in-vehicle networking for an automated, connected, and electrified future," the release reads. "GF and Ford also will explore expanded semiconductor manufacturing opportunities to support the automotive industry."

    This all sounds promising, though the press release doesn't actually commit either company to any specific actions. When contacted for information on more particulars, Ford spokesperson Jennifer Flake reiterated that this was "an agreement to work together on the areas called out in the release," but had no further information to share.

    Automakers have been hit hard by the chip shortage, stemming in part from business decisions made early in the COVID-19 pandemic. Anticipating reduced demand, automakers cut back their chip orders, and chipmakers in turn cut chip production. But demand for new vehicles (and all kinds of goods) has surged back more quickly than expected, and automakers who cut their orders have found themselves at the back of a long line waiting for more chips.
    Source: arstechnica

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