Feb. 10, 2023–General Motors and GlobalFoundries have signed a long-term agreement that will secure semiconductor chips for the auto manufacturer, CNBC reports.
The deal is an attempt at resolving the issues that have risen from the chip shortage in the United States. The semiconductor facility in upstate New York will produce chips “exclusively for key auto suppliers of the Detroit automaker.”
GM executive vice president of global product development Doug Parks expects GM’s need for semiconductor chips to “more than double over the ‘next several years’” as the company introduces technological advances such as all-electric trucks and cars.
GlobalFoundries CEO Thomas Caulfield told CNBC that the deal is an expansion for the company and that he believes there will be many more similar deals in the future.
“This is a first-of-a-kind deal, not a last of its kind,” he said. “This is a solution to a problem. We believe it’s a framework for others to leverage as well.”
Caulfield said that production of the chips for GM is expected to accelerate in two to three years.
