Ford strikes a deal to assist with finishing its chip lack

Ford strikes a deal to assist with finishing its chip lack

Ford and chip maker GlobalFoundries on Thursday said they intend to cooperate to help supplies for the automaker’s vehicles and the more extensive US auto industry yet gave not many insights regarding what the deal involves.

The two organizations reported a non-binding contract that could include expanding production capacity with respect to Ford’s current lineup and performing joint innovative work on a few categories of chips that are probably going to be vital to future vehicles, for example, battery-management systems and self-driving systems.

Over the previous year, a global chip lack has made Ford and different automakers shorten vehicle production. Most organizations have coordinated the chips they get to their most beneficial vehicles. That has led automakers to investigate ways of supporting access to chips.

Majority owned by Abu Dhabi’s sovereign wealth fund, GlobalFoundries (GFS) became publicly traded this year when it sold a stake in its business in a $26 billion initial public offering. The organization has said that some of the $2.6 billion brought up in the deal will go toward building a second chip factory at a site in Malta, New York.

Ford (F) and GlobalFoundries didn’t uncover any terms of the deal or say whether Ford was giving funding or different responsibilities to reserve capacity at any of GlobalFoundries’ current or future factories. The two said just that the “strategic collaboration” doesn’t include any cross-ownership between the organizations.

“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,” Ford Vice President Chuck Gray said in an interview.

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