Ford and General Motors said Thursday that they are building stronger relationships with semiconductor makers to improve the supply of electronic chips. Automotive industry Face a shortage.
Ford has signed a non-binding contract with New York-based chip maker GLOBALFOUNDRIES to “open the door” for joint research, development and manufacturing of chips to supply to its assembly lines in the U.S. automotive industry. “.
GM President Mark Royce told investors that demand for semiconductors “will more than double in the next few years” as cars and trucks become electronically complex.
As a result, automakers are pursuing partnerships with Taiwan TSMC Manufacturing Company, The world’s most valuable chip makers, NXP Semiconductors, Qualcomm and more.
The automotive sector is under pressure due to a shortage of semiconductors, limiting new car sales. Producers weren’t ready when last year’s pandemic’s decline in demand for cars and trucks reversed faster than expected. They find themselves now competing with consumer electronics makers. Chip supply..
Today, Toyota pioneered the concept of just-in-time production in the 1970s, reaffirming how to secure this critical component for use in everything from brakes and power steering to entertainment systems. I’m evaluating it. Ford said the deal could increase the company’s chip supply in the coming months.
GLOBALFOUNDRIES, owned by Abu Dhabi’s Sovereign Wealth Fund Mbada Line Bestment Company, Published last month. Chipmaker’s share price rose 5.4% to $ 66.07 on Thursday, while Ford rose 0.3% to $ 19.92.
They added that joint R & D efforts between the two companies could extend the advanced chips needed for use in electric vehicle battery systems, semi-automatic driving, and wireless software updates.
Ford CEO Jim Farley said the deal is a “key part” of the vertical integration plan and is a move to give companies more control over their supply chains.
By partnering with an automaker, GlobalFoundries CEO Tom Caulfield said the company can “get new features to market faster and ensure a long-term supply-demand balance.”
Morningstar analyst David Whiston said it was good for Ford to secure a domestic supply and change course in line with Farley’s comments in April. Need to rethink How did you guarantee the supply of critical components?
But he added, he suspects that the agreement “can be implemented quickly unless GlobalFoundries has already set the capacity and is dedicated to it.” Ford“.
Ford has not taken ownership of GLOBALFOUNDRIES, although the terms of the deal have not been disclosed.
Ford and GM pursue ties with semiconductor groups to boost chip supply Source link Ford and GM pursue ties with semiconductor groups to boost chip supply