GM has announced a new strategic, long-term agreement with semiconductor manufacturer GlobalFoundries (GF) establishing a dedicated capacity corridor exclusive to GM, with GF manufacturing for GM’s key chip suppliers.
The move supports GM’s move to reduce the number of unique microchips needed to produce its various vehicle model lines. GM states that this strategy will enable a higher volume of better-quality microchips, a critical step as the demand for new chips increases.
“We see our semiconductor requirements more than doubling over the next several years as vehicles become technology platforms,” said GM executive vice president of Global Product Development, Purchasing and Supply Chain, Doug Parks. “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, while delivering new technology and features to our customers.”
The new chips will be manufactured at GF’s semiconductor facility in Upstate New York, reinforcing U.S.-based supply chain links.
“Thanks to my CHIPS and Science Act, we are bringing manufacturing back to our country and America’s supply chains are being secured, creating good-paying jobs here in Upstate New York, not overseas,” said U.S. Senate Majority Leader Charles Schumer. “This partnership is yet another example that our nation’s future will be built in Upstate New York, with the Capital Region as a global center for the future of the microchip industry.”
The announcement follows a global microchip shortage that decimated auto manufacturer production, including at GM. In response to the shortage, GM enacted a “build shy” strategy wherein vehicles were produced without certain features in order to keep production lines moving. These vehicles were later retrofitted with the missing features as additional microchips were sourced. At the height of the shortage, GM had accumulated tens of thousands of unfinished vehicles awaiting new chip supplies prior to being shipped.
Looking ahead, GM states that it aims to produce its own family of microchips by 2025 in order to offset any possible future chip-related production issues.
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Comments
The emphasis is on the phrase “technology platforms.” This is even bigger than the shift towards electric. The technology hubs will revolutionize the auto and computing industries. The $100 billion question is whether GM can compete with the tech companies in this field. If they pour everything they’ve got into this sector, they can.
This is great. On one hand, we have a party moving forward with an American agenda that is boosting our abilities and strength in the world, and on the other hand we have a party that is busy with an agenda that will do nothing for the American people. It’s clear to me which party has the clear vision.
Well said.
Good news like this creates library-style quietness around these parts.
I’ll actually agree with you here Dan. The current administration has passed legislation hat has really spurred an enormous amount of investment into the U.S. that will generate significant job opportunities. Even more interesting is that it’s thee right leaning states that are benefiting the most from this investment.
Since when is NY a right leaning state?
hahahaha…he meant upstate part ahahahahahaha..now what is upstate? Me anything north of Putnam County considering we had a pub running Dutchess!
Once again LATE. Ford did this in 2021!
The story uses past tense as if the semiconductors have already been retrofitted to vehicles that GM left out. Fact is, they have not. Ive been waiting almost a year and still have no idea when I’m getting the chips to “finish” a vehicle I already paid for. Did I know they didn’t have chips? Yes. Did I know it would take this long for GM to actually make things right? Absolutely not. I would have never bought the vehicle. Shortage is still very real not a past tense issue.
Oh and I forgot. Now were going to have cars built with a mix of chip designs causing no spares once the car ages and if it does exist maybe as a special order be charged through the nose to have the dealer fix it should that come to pass….think VOLT batteries as pretty much none existent to replace or pay thru the nose. GM has plans for 2025 for a new set of standards? Til then what is used as temporary?
manjunk1963 – I also worry that my new car with 100 micro porcessors will
have trouble staying alive in 30 years. But in the restoration markets clever
people have been reprogramming microprocessors to retrofit cars for several years now.
And this is good news that smart people can build replacements out of whatever will be common in the future.
We are gonna be okay.
Reconditioned or remanufactured!
Global Founderies factory broke ground several years ago pre-covid. It is a massive fab plant and this is good news all around. Almost a no brainer.
Integra Technologies is building a $1.8 Billion dollar plant in Wichita, Ks. Semiconductors are just one of the various items they make for industry.
How about tRUMP chips, pay $15000.00 to learn at tRUMP university, by the time you get to the classroom, all your money is gone and teacher never shows up in classroom. tRUMP laughs all the way to the bank. hahaha
I’ll take my chance with Biden.
Should have been manufactured here in the USA from day one anyway!
So if this article paints a rosy chip future for GM, but does not provide any indication on when I will receive my 2022 chip for my GMC 2500 Sierra Denali? I’ve been waiting for over a year!!! (Purchased Feb 2022) You took my money under the conditions that you would install my chip in six months. Well that six months has long passed. No chip should be put into any new or electric vehicle until you fulfill your commitment to existing customer base.
I went and had a service done on my 2022 Chevy Silverado missing the heated steering wheel and parking sensors, yesterday. I asked the service advisor what is happening with the chip delay. He said they released a “fix” however it was causing issues with the heated and cooled seats so GM pulled the service recall. I understand I bought the vehicle knowing the truck didn’t have these chips and GM was going to resolve later, however this has been going on for over a year. At this point it’s becoming ridiculous that GM is getting away with this.