Ford (NYSE: F) has decided to enter into a partnership with a semiconductor manufacturer in an effort to alleviate production shortcomings stemming from the global chip shortage.
On Thursday, Ford announced it has entered into a nonbinding strategic partnership with chip maker GlobalFoundries, in an effort to boost the automaker’s long- and short-term supply of chips. According to officials cited by CNBC, the move could potentially lead to more innovative chip designs specific to Ford, as well as increase the overall chip supply for the broader automotive market.
“We’re working to reimagine our supply chain,” explained Ford vice president of vehicle embedded software and controls Chuck Gray to CNBC. “It will really help increase our independence.” The two firms refrained from revealing by how much the partnership will raise Ford’s chip supply, or the financial terms of the agreement.
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“There will be some near-term expansion of capacity … but this is about building a different future,” said Ford’s senior vice president and general manager of automotive Mike Hogan. “The automotive industry is fundamental to our strategy.”
Information for this briefing was found via Ford and CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
