DETROIT (AP) — Ford Motor Co. is in talks with a computer chip maker to shore up its semiconductor supplies and avoid a repeat of this year’s auto factory shutdowns caused by semiconductor shortages.
Few details of the nonbinding agreement with GlobalFoundaries Inc. were released, but the deal aims to boost supplies with joint development of automotive-grade chips. And it could result in joint manufacturing to support the auto industry, the companies said Thursday.
Ford has been hit particularly hard by a global chip shortage that has weighed on nearly every automaker. Like other companies, Ford at times has had to temporarily close auto plants and even shift production efforts.
GlobalFoundaries is based in the town of Malta near Albany. The company says on its website that it is among the world’s largest independent semiconductor makers.
Financial details of the agreement were not released, it does not involve cross-ownership between the companies, the statement said.