The Strategist

Ford to enter the automotive electronics processor market

11/19/2021 - 09:31

Ford has decided to enter the semiconductor and processor market. The company has signed an agreement that it will participate in chip development and may even manufacture them in the future.

Under the agreement, GlobalFoundries will be able to supply components for Ford's car lineup. The companies will jointly research and develop the processors. 

Ford and GlobalFoundries will also look into semiconductor manufacturing opportunities. The agreement aims to develop semiconductor manufacturing and technology development in the U.S. and increase Ford's supply of chips to other U.S. automakers, the statement said. The companies did not disclose the terms of the agreement or how much they might invest in the joint projects.

The agreement with GlobalFoundries is the first and key part of GlobalFoundries' plan to vertically integrate core technologies and capabilities that will distinguish Ford over the long term, company president Jim Farley said in a statement. For GlobalFoundries, the partnership with Ford means advancing innovation and bringing new technologies to market faster, the company’s CEO Tom Caulfield said.

Ford is seeking to enter the semiconductor market amid a global semiconductor shortage that has been limiting vehicle production worldwide for a year, The Wall Street Journal wrote. It noted that the agreement with GlobalFoundries could lead to joint production of processors in the US in the future.