Ford & GM enter semiconductor business to mitigate shortage

The semiconductor shortage has affected the vehicle production and supply chain of multiple carmakers around the world.

Two of America's largest car brands, Ford and General Motors are said to have outlined plans of entering the semi-conductor business in order to help deal with the chip shortage plaguing the auto industry.

According to media reports, Ford has inked a strategic partnership with Global Foundries to help speed up the manufacturing of semiconductors in the US. The carmaker is said to have signed a non-binding agreement with Global Foundries which will allow the chip manufacturer to improve production and supply of semiconductors for Ford's current vehicle lineup. The two companies will also create a joint R&D to address the growing demand in the automotive industry.

General Motors, on the other hand, is also working with close to seven semiconductor manufacturers to ensure a consistent supply of chips. These include Qualcomm, ST Microelectronics, Taiwan Semiconductor Manufacturing Co, Renesas Electronics, ON Semiconductor Corp, NXP Semiconductors & Infineon Technologies.

The semiconductor shortage has plagued the automotive industry for over a year. It has affected the vehicle production and supply chain of multiple carmakers around the world. Semiconductor chips in vehicles are used to power features and tech including ADAS, in-vehicle networking, battery management systems and many others.

Source: Autocar Professional