Ford thinks it has an answer to ongoing automotive chip shortages: make a cope with one of many world’s largest chipmakers. CNBC reports the badge has unveiled a “strategic collaboration” with GlobalFoundries that may increase chip manufacturing and improvement within the US to enhance provide for Ford and different home automotive producers. The non-binding association could have GlobalFoundries look into options for parts starting from superior driver help by means of to EV battery administration.

The precise phrases aren’t clear. However, Ford careworn the team-up “does not involve” any joint possession stakes.

Any outcomes may not come for some time. It takes time simply to repurpose factories and ramp up manufacturing, not to mention to construct any new amenities. Regardless, each side have a powerful incentive to work collectively. Ford has already slashed manufacturing and delayed automotive orders to accommodate chip shortages, as an illustration. IWhatever prices it pays may very well be worthwhile if they assist the corporate meet demand.

GlobalFoundries, in the meantime, may use this to land extra enterprise from automakers and journey a surge in automotive demand. It may additionally assist the semiconductor agency diversify its manufacturing away from chips for extra conventional computing {hardware}. This deal would possibly final some time, then, if simply because it is mutually helpful.