General Motors and Grofond GlobalFoundries (GF) recently announced a strategic, long-term agreement to create a dedicated capacity path for the supply of chips to General Motors. Through this first-of-its-kind agreement, GF will bring a key process to the U.S. for GM’s primary chip supplier to produce at GF’s advanced semiconductor facility in upstate New York.
This agreement supports GM’s strategy to reduce the number of unique chips needed to power increasingly complex and technologically advanced vehicles. Through this strategy, chips can be produced in larger quantities and are expected to deliver better quality and predictability, maximizing the creation of high-value content for end customers.
Doug Parks, executive vice president of global product development, procurement and supply chain at GM, said, “We expect our demand for semiconductors to more than double in the coming years as the car becomes a technology platform.”
GF is reportedly responding to the global demand for semiconductors through a series of long-term strategic agreements with existing and new customers.