GM and GlobalFoundries announce Long-term Direct Supply Agreement for U.S. Production of Semiconductor Chips

General Motors Co. (GM) and GlobalFoundries on Thursday announced a strategic, long-term agreement establishing a dedicated capacity corridor wholly for GM’s chip supply. Through this first-of-its-kind agreement, GF will produce for GM’s key chip suppliers at GF’s advanced semiconductor facility in upstate New York bringing a significant process to the U.S.

This agreement strengthens GM’s strategy to decrease the number of unique chips required to power increasingly complex and tech-laden vehicles. With this strategy, chips can be produced in higher volumes and are anticipated to extend better quality and predictability, maximizing high-value content creation for the end customer.

Semiconductors are the underpinning of the technologies that are powering the electrification, autonomous driving, and connectivity of the auto industry, and they have been the highlight of the global chip shortage that has affected automakers over the previous few years.

The company finds its semiconductor requirements more than multiplying over the next several years as vehicles become technology platforms, said Doug Parks, GM executive vice president of Global Product Development, Purchasing, and Supply Chain.

The supply agreement with GlobalFoundries will help determine a strong, resilient supply of critical technology in the US that will help GM meet this demand while delivering new technology and elements to its customers, Parks added.

At GF the company is committed to working with its customers in new and innovative methods to best address the challenges of today’s global supply chains, said Dr. Thomas Caulfield, president, and CEO of GF.

GF will expand its production capabilities entirely for GM’s supply chain, enabling them to strengthen its partnership with the automotive industry and New York State, while further accelerating automotive innovation with U.S.-based manufacturing for a resilient supply chain, Caulfield said.

This first-of-its-kind agreement between GlobalFoundries and General Motors is going to drive the Capital Region economy forward and ensure Upstate New York remains in the driver’s seat as one of the nation’s leading centers for semiconductor manufacturing that is so critical to the supply chain of the auto industry, said U.S. Senate Majority Leader Charles Schumer. This partnership is another instance that the nation’s future will be created in Upstate New York, with the Capital Region as a global center for the future of the microchip industry.

New York State would not only be the semiconductor capital of the country but of the globe, said New York Governor Kathy Hochul. This agreement will help to further establish New York State as a most important hub for semiconductor manufacturing. With its nation-leading Green CHIPS legislation and the new Governor’s Office of Semiconductor Expansion, Management, and Integration, the government is helping businesses like GlobalFoundries and GM to expand the chips manufacturing environment in the state, creating jobs and opportunities for future generations.

GF is responding to the global demand for semiconductors through a series of strategic long-term agreements with new and existing customers and simultaneously expanding global capacity to meet customer demand in partnership with federal and local governments. Supportive policies like the bipartisan CHIPS and Science Act are encouraging the onshoring of semiconductor production and reestablishing the U.S. as a global leader in this critical technology.

About General Motors (GM)

A global company focused on furthering an all-electric future that is inclusive and accessible to everyone. At the center of this approach is the Ultium battery platform, which powers everything from mass-market to high-performance vehicles. General Motors, its subsidiaries, and its joint venture entities sell vehicles under the Chevrolet, GMC, Buick, Cadillac, Baojun, and Wuling brands.

About GF

GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high-growth markets. GF provides a unique mix of feature-rich design, development, and fabrication services. With a capable and distinct workforce and an at-scale manufacturing footprint spanning the U.S., Europe, and Asia, GF is a trusted technology source to its worldwide customers.