Grosfond and General Motors sign long-term supply Agreement for Semiconductor Chip production in the United States

General Motors and GlobalFoundries (GF) recently announced a strategic long-term agreement to establish a dedicated capacity channel for GM's chip supply. Through this pioneering agreement, GF will produce for GM's major chip suppliers at GF's advanced semiconductor plant in upstate New York, bringing a key process to the United States.

The agreement supports GM's strategy to reduce the number of unique chips needed to power increasingly complex and high-tech cars. Through this strategy, chips can be produced in greater quantities and are expected to provide better quality and predictability, maximizing the creation of high-value content for end customers.

"as cars become a technology platform, we expect our demand for semiconductors to more than double in the next few years," said Doug Parks, executive vice president of global product development, procurement and supply chain at GM.

It is reported that GF is responding to the global demand for semiconductors by signing a series of long-term strategic agreements with existing and new customers.