In order to address the worldwide shortage of semiconductor chips, Ford Motor Company is looking to purchase chips directly from the world's third largest foundry, GlobalFoundries Inc.
On November 18, Ford announced that it was forging a strategic collaboration with GlobalFoundries Inc, which raised $2.6 billion in its initial public offering in October.
The Foundry moved its headquarters to Malta, NY after a shift from its earlier California location in order to increase its output.
As quoted by Bloomberg, Chuck Gray, Vice President at Ford, said that if everything goes as planned, Ford and GlobalFoundries will team up to grow the supply for Ford's current vehicle lineup, and also do R&D work together.
Ford CEO Jim Farley described the shortage of semiconductors as the biggest supply shock in the company's history, while hinting at the firm's focus on chip manufacturing, with direct interactions and handling with chip manufacturers.
One of the boldest agreements involving a semiconductor manufacturing firm and a key automobile manufacturer is a pact with GlobalFoundries, in a bid to bypass existing chip manufacturers.
After news of the agreement with Ford, GlobalFoundries' stock went up 5.8 percent to $66.34 at 9: 39 a.m. in New York.