Defense giant Lockheed Martin and chipmaker GlobalFoundries will collaborate to advance semiconductor manufacturing in the U.S., the companies announced on Monday.
The multi-pronged collaboration will work to increase the security of domestic supply chains for U.S. national security systems.
The partnership will utilize GlobalFoundries’ technology and manufacturing practices to strengthen microelectronics systems and supply chains. It will also develop semiconductor manufacturing innovations to improve chip packaging and performance, increase data transport and enhance technology to help chips function at higher temperatures.
Finally, Lockheed Martin and GlobalFoundries will create a chiplet ecosystem to produce chips faster and cheaper.
“The collaboration between Lockheed Martin and GF directly supports the CHIPS and Science Act’s objectives of increasing traceability, provenance, and onshore production of critical semiconductor technologies to strengthen national and economic security and domestic supply chains,” the companies said in the announcement.
Both companies said they will jointly pursue external funding opportunities, technology development and collaboration with the U.S. government to strengthen semiconductor supply chains in defense systems.
GlobalFoundries’ focus on the defense market has paid off in recent months. Revenue for the home and industrial IoT market grew 7% YoY in Q1, driven by the company’s aerospace and defense business, GlobalFoundries CFO David Reeder said in an April earnings call.
GlobalFoundries has been forging deals with other large companies as more industry leaders demand semiconductors. In February, the chipmaker signed a supplier agreement with automaker General Motors for its growing EV supply chain network.
The chipmaker has also been investing in increasing its manufacturing capacity. In August, GlobalFoundries extended its partnership with Qualcomm Technologies, which included $4.2 billion in chip manufacturing and expanding capacity at its Malta, New York facility.