General Motors

 

General Motors has signed a long-term agreement with GlobalFoundries for U.S.-made semiconductor chips.   The move comes as automakers have struggled to get chips for their vehicles amid broader supply chain issues. As part of the deal, GlobalFoundries will establish a dedicated production capacity exclusively for GM’s suppliers. According to both companies, the agreement is a first of its kind in the auto industry. In a statement, GM said the agreement would provide a resilient supply of critical technology in the U.S. and help GM meet its demand. GM expects its use of semiconductors to more than double in the next several years. The agreement would expand GlobalFoundries’ production capacity and, according to GlobalFoundries CEO Thomas Caulfield, would take two to three years to ramp up.