Ford to Invest in Semiconductors Amid Shortage
Nov. 24, 2021—Ford Motor Co. is in discussions with semiconductor chip manufacturer GlobalFoundaries Inc. to boost its supplies amid the current global shortage.
According to a report from the Detroit Free Press, the deal is currently non-binding and "aims to boost supplies with joint development of automotive-grade chips." The partnership could even lead to a joint manufacturing venture.
“This agreement is just the beginning, and a key part of our plan to vertically integrate key technologies and capabilities," Ford CEO Jim Farley said.
Ford, like the rest of the auto industry, has been acutely affected by the shortage. Sales for the automake fell by 27 percent from July through September according to the report, and the company lost 2.4 percent of market share "largely because it couldn't produce enough vehicles to meet consumer demand."
Ford executives are hopeful a domestic partnership will decrease reliance on international supply and could help avoid another shortage in the future.