GM.US Signs U.S. Semiconductor Manufacturing Agreement with GFS.US
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Update time : 2023-02-11 11:36:23
General Motors (GM.US) has signed a long-term agreement with GFS.US, Global Foundries. The two companies announced Thursday that they will establish exclusive production capacity to manufacture semiconductor chips in the United States.
The deal is being called an industry first as automakers continue to struggle with supply chain issues, including a years-long global shortage of semiconductor chips. According to the companies, Gecko will establish dedicated production capacity for GM's major automotive suppliers at its semiconductor facility in upstate New York. Doug Parks, GM's executive vice president of global product development, sourcing, and supply chain, said in a statement, "The supply agreement with Ge-core will help establish a strong, resilient supply of key technologies in the U.S. that will help GM meet demand while delivering new technologies and capabilities to our customers." Parks said GM expects its semiconductor usage to more than double "in the next few years" as all-electric cars and trucks require more chips than conventional vehicles. Thomas Caulfield, chief executive officer of Graco, noted that producing chips exclusively for GM would expand the company's business. The deal, which could serve as a template for other transactions between Microchip and other companies, offers the best economics for both companies and provides a roadmap for the materials needed to produce chips in the future. This is the first deal, not the last," Caulfield said. It's a solution to a problem. We believe it's also a template that can be used by others." He noted that GM's exclusive production program is expected to take two to three years to actually get off the ground.
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