Chip Crisis, Ford Cooperates With GlobalFoundries To Fulfill Supply

Ford Bronco (Source: Ford)

JAKARTA - Ford Motor Company cooperates with GlobalFoundries (GF), a feature-rich semiconductor manufacturer, to increase the supply of chips for Ford and the United States automotive industry.

The two companies also agreed to conduct joint research and development to address the growing demand for feature-rich chips to support the automotive industry.

The scope of this collaboration includes semiconductor solutions for ADAS (advanced driver-assistance systems), battery management systems, and in-vehicle networking for an automated, connected, and electrified future.

GF and Ford will also explore expanded semiconductor manufacturing opportunities to support the automotive industry.

"This agreement is just the beginning, and a key part of our plan to vertically integrate key technologies and capabilities that will differentiate Ford far into the future," said Jim Farley, Ford president, and CEO, in a statement.

The agreement with Ford, for GF, is a step forward in strengthening collaborations and partnerships to spur innovation, deliver new features more quickly, and ensure a balanced supply of chips, said Tom Caulfield, CEO of GF.

This strategic collaboration between Ford and GF does not involve cross-ownership between the two companies. The shortage of chip supply continues to have an impact on the automotive and technology industries, even some leading car manufacturers were forced to temporarily close production lines.

The chip supply crisis was triggered by the increasing demand for personal computers, tablets, and smartphones during the COVID-19 pandemic, where online activities are growing rapidly due to social restrictions.

Analysis firm IHS Markit said at the time that a chip shortage could cut global vehicle production by nearly 700,000 units year-on-year, though the final figure could be higher.