General Motors revealed a new, first-of-its-kind “direct” supply agreement for semiconductor wafers with GlobalFoundries (GFS).
GM’s new agreement ensures the supply of EV semiconductors
After dealing with semiconductor shortages for several years, GM is not taking any chances in the future.
The company revealed today a long-term contract with leading semiconductor manufacturer GlobalFoundries, which provides GM with an exclusively dedicated capacity corridor for chip supply.
GFS will produce wafers directly for vital GM suppliers to increase production volumes and improve reliability.
Semiconductors enable the shift to zero-emission electric vehicles and self-driving driving. EVs require more chips for advanced power features such as data acquisition, connectivity, and other technological features.
“GF will expand its production capabilities exclusively for GM’s supply chain, enabling us to strengthen our partnership with the automotive industry and New York State while further accelerating automotive innovation with U.S.-based manufacturing for a more resilient supply chain.”
Dr. Thomas Caulfield, CEO of GFS
Semiconductors are GM’s key for its goal in 2025
The semiconductor supply chain has eased in the last year as a result of investments such as the Chips and Science Act, which provided more than $50 billion to establish a reliable US supply chain. However, demand is still predicted to rise substantially over the next decade or so as EVs and automated driving technology become the primary modes of transportation.
Semiconductors will be critical in GM’s goal of selling one million electric vehicles by 2025.
Bloomberg claimed that GM is in advanced talks with Vale for a stake in its nickel and copper mining business, in addition to investing $650 million to develop Thacker Pass in Nevada, the most extensive known lithium supply in the US.
