For the first time in the industry, General Motors signed a long-term chip supply agreement with GE Core

February 10 news, according to foreign media reports, local time on Thursday, General Motors announced with the chip maker GE Core signed a long-term chip supply agreement.

GE Core said the agreement was the first of its kind because carmakers had little direct contact with chip suppliers in the past.

Under the agreement, GE Core will produce chips for GM's major chip suppliers at its advanced semiconductor plant in upstate New York.

GM said it was a long-term agreement, but would not say how long it would last. The two companies would not disclose how many wafers they would produce or disclose financial details.

Disruptions in the supply of components such as chips or semiconductors have created problems for carmakers in recent years, leading to fewer supplies of new cars and higher prices for new cars, trucks and SUV.

Thomas Caulfield, GM's chief executive (CEO), said the direct partnership with GE Core would provide GM with a safe supply of chips and would help control costs.

In addition, GM said it was working to simplify the number of unique chips in cars, but it was also ensuring suppliers' ability to produce chips, as the overall number of chips was expected to increase.