US Made Semiconductors – GM, GlobalFoundries Ink Deal

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General Motors Co. (NYSE: GM) and GlobalFoundries* (NASDAQ: GFS) today announced a long-term agreement establishing a dedicated capacity corridor exclusively for GM’s chip supply. In what likely is an unprecedented agreement, GF will manufacture for GM’s key chip suppliers at GF’s advanced semiconductor facility in upstate New York thereby returning a critical process to the US. It is consistent with GM’s strategy to reduce the number of unique chips needed to power progressively complex and technology filled vehicles. Chips can be produced in higher volumes and are expected to offer better quality and predictability.

“I have long said that Upstate New York’s semiconductor corridor will be a major engine powering America’s technological future, and now ‘Made in New York’ chips will help jumpstart the next generation of vehicles for GM across the country,” said U.S. Senate Majority Leader Charles Schumer. Schumer of course we key in developing and passing the Biden Administration’s bi-partisan CHIPS and Science Act, which is bringing  manufacturing back to US supply chains.

“GF will expand its production capabilities exclusively for GM’s supply chain, enabling us to strengthen our partnership with the automotive industry and New York State, while further accelerating automotive innovation with U.S.-based manufacturing for a more resilient supply chain,” said Dr. Thomas Caulfield, president and CEO of GF.

“We see our semiconductor requirements more than doubling 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 establish a strong, resilient supply of critical technology in the U.S. that will help GM meet this demand, while delivering new technology and features to our customers.”

*About GF

GlobalFoundries (GF) is a leading semiconductor manufacturer. GF says it offers a unique mix of design, development and fabrication services. GF also has a manufacturing footprint in the US, Europe and Asia. ©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries.