Dive Brief:
- GM signed an exclusive supplier agreement with semiconductor maker GlobalFoundries, another arm of the automaker's growing electric vehicle supply chain network.
- Through the agreement, the chip manufacturer aims to reduce the number of unique chips needed to power GM’s EVs by producing higher quality supply in greater quantity and with more predictability, according to the release.
- GlobalFoundries will produce the chips at its manufacturing facility in Malta, New York.
Dive Insight:
GM has spent the past year fortifying its EV supplier network, looking to secure ample supply of electric vehicle and battery components as it races to produce 1 million EVs annually by 2025.
"We see our semiconductor requirements more than doubling over the next several years as vehicles become technology platforms," Doug Parks, GM executive vice president of global product development, purchasing and supply chain, said in a statement. "The supply agreement with GlobalFoundries will help establish a strong, resilient supply of critical technology in the U.S. that will help GM meet this demand."
GM signed three supplier deals last summer to secure components needed for battery production, including lithium, nickel, cobalt and cathode active material. And in January, the automaker announced plans to invest $650 million in a Nevada lithium mine.
GlobalFoundries, meanwhile, has been investing in its manufacturing capacity. The company announced the extension of its partnership with QualComm Technologies in August, including investing $4.2 billion in chip manufacturing and expanding capacity at GlobalFoundries' Malta facility.
For New York, the GM-GlobalFoundries news builds on its efforts to become a hub of semiconductor manufacturing activity. The state passed the Green CHIPS legislation in August, aimed at attracting chip investment and job creation in the state.
"We're making New York State not only the semiconductor capital of the country — but of the globe," New York Gov. Kathy Hochul said in a statement.
