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Ford Looks To Bring Semiconductor Manufacturing Stateside

Among a litany of the challenges, the ongoing semiconductor shortage has weighed on U.S. automotive manufacturers.

Despite solid demand, sales have faced strong headwinds from the part shortages, paired with low showroom inventories.

In turn, automakers, including Ford Motor Co., have idled production at various points over the last year. The Detroit automaker idled production at several plants in July and August in response to the chip shortage.

However, the automaker recently announced a collaboration that aims to strengthen its position in the semiconductor market.

Ford, GlobalFoundries announce collaboration on semiconductors

Ford late last week announced a “strategic collaboration” with GlobalFoundries to “advance semiconductor manufacturing and technology development within the United States, aiming to boost chip supplies for Ford and the U.S. automotive industry.”

“It’s critical that we create new ways of working with suppliers to give Ford – and America – greater independence in delivering the technologies and features our customers will most value in the future,” Ford President and CEO Jim Farley said. “This agreement is just the beginning, and a key part of our plan to vertically integrate key technologies and capabilities that will differentiate Ford far into the future.”

Ford said the non-binding agreement will include increased supply of semiconductors for the automaker. In addition, the parties will work together on research and development to help address growing semiconductor demand.

Semiconductor sales rise

Speaking of rising demand, global semiconductor sales in the third quarter increased by 27.6% year over year, the Semiconductor Industry Association reported earlier this month.

Worldwide sales amounted to approximately $144.8 billion, the industry group said. Furthermore, Q3 sales increased by 7.4% from the second quarter.

“Semiconductor shipments reached all-time highs in the third quarter of 2021, demonstrating both the ongoing high global demand for chips and the industry’s extraordinary efforts to ramp up production to meet that demand,” SIA President and CEO John Neuffer said. “Sales into the Americas led the way, increasing more than any other regional market both month-to-month and year-to-year.”

By AG Metal Miner

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