GM’s new partnership secures American semiconductor chip production

After nearly two years of a global shortage of semiconductor chips that crippled the production of new cars across the industry, General Motors has locked down exclusive production of a significant portion of the chips it will need for future cars.

GM and GlobalFoundries, a global semiconductor chipmaker, announced Thursday a long-term agreement where GF will manufacture the key components of the chips, including the semiconductor wafer. This wafer will be sent to a semiconductor chip supplier, who will complete the finished chip. That chip goes to a parts supplier, such as brake maker Bosch, which puts it into an electronic braking system that is then sent to GM for its vehicles.

The chip components will be manufactured in the United States at GF’s advanced semiconductor facility in Malta, New York, which is about 25 miles north of Albany.

“This long-term agreement helps us establish a dedicated supply of semiconductor chips going forward,” said GM spokesman Dan Flores.

Flores declined to provide details on the length of the deal or the finances.

GF CEO Thomas Caulfield said the company will expand its production exclusively for GM’s supply chain, allowing GF to strengthen its partnership with the automotive industry and “accelerate the innovation of the ‘automotive with US-based manufacturing for a more resilient supply chain.’