Ford Partners with GlobalFoundries to Tackle Ongoing Chip Shortage Crisis

Last updated: October 15, 2026

Two of America's biggest automakers are moving to secure their chip supplies after years of shortages that have crippled vehicle production. Ford announced a partnership with GlobalFoundries Inc. To explore domestic semiconductor manufacturing, while General Motors revealed it's working with Qualcomm, TSMC, and other chipmakers to co-develop new automotive processors. The announcements highlight how the global chip shortage has forced car companies to rethink their supply chains and bring critical technology development in-house.

What happened

• Ford partnered with GlobalFoundries to explore US semiconductor manufacturing
• The agreement is optional and light on specific commitments
• GM is co-developing chips with Qualcomm, TSMC, and others
• GlobalFoundries is the world's fourth-largest chip maker
• Ford's F-150 production was reportedly halved earlier due to shortages

Why the chip shortage hit automakers hard

The global chip shortage has devastated auto manufacturing in ways that go beyond simple supply chain hiccups. Ford's F-150—its best-selling vehicle—reportedly had production cut in half earlier this year. Several of Ford's North American plants have closed temporarily, and the effects ripple across the entire industry. Some vehicles shipped without features like heated seats, touchscreens, or USB ports because the required chips simply weren't available.

The problem stems partly from how automakers traditionally buy chips. Many use older, cheaper technology and place smaller orders than consumer electronics companies like Apple. While smartphone makers order millions of identical chips, car manufacturers need smaller batches of specialized processors. Throw in pandemic-related supply chain disruptions and a fire at a key facility, and you have a crisis that industry leaders say could last years.

Ford CEO Jim Farley described the company's strategy as "going straight" with chip manufacturers rather than relying on traditional tier-one suppliers. Chuck Gray, Ford's VP of vehicle embedded software and controls, told the Wall Street Journal that the company wants to "accelerate our product performance and technical independence at the same time."

What the GlobalFoundries partnership actually means

GlobalFoundries spun off from AMD in 2009 and now ranks as the world's fourth-largest chip manufacturer behind TSMC, Samsung, and UMC. The company produces chips for AMD, Qualcomm, Samsung, and others. It went public recently, with its CEO stating that chip supply remains exhausted through 2023.

The Ford-GlobalFoundries deal speaks to advancing US-based production capabilities and researching new manufacturing pathways, yet it lacks firm targets. Rather than pledging to construct new fabrication plants, both parties are investigating potential avenues for supporting car-sector semiconductor needs. That framing suggests a cautious initial step, not a definitive remedy.

GM's approach differs. CEO Mark Reuss said his company is working to co-develop new chips with multiple semiconductor partners including Qualcomm, TSMC, and others. The focus appears to be on building relationships and designing chips in-house rather than owning fabrication facilities.

Our analysis: automakers playing a long game

The push for US-based chip manufacturing has bipartisan political support and includes incentives from the Biden administration. However, actual domestic capacity remains a decade away from meeting current demand. Building semiconductor fabs costs billions and takes years to complete. This means automakers must find ways to survive the shortage in the interim.

Ford's Farley mentioned that deeper supply chain engagement requires "boots on the ground in places like Taiwan and China." He also noted that tech companies like Cisco and Dell run supply chains "completely differently than automotive" and that car manufacturers need to catch up. The plans to build vehicle autonomy mean bringing "real expertise in silicon and chip design" into the company, similar to how Tesla rewrote its vehicle software to work with available chips.

These partnerships signal a shift in how carmakers view technology sourcing. Rather than treating chips as a commodity bought through third parties, Ford and GM are trying to build direct relationships with semiconductor firms. Whether that translates to actual manufacturing independence remains unclear.

What this means for you

Say you are shopping for a new truck or SUV right now. Understanding that chip shortages affect which features are available—and which vehicles might be in short supply—helps set realistic expectations. You might find better deals on 2021 models still sitting on dealer lots, or you could wait for 2022 and 2023 models as supply gradually improves. Some features may be temporarily unavailable or offered only on higher trim levels. If you need a specific configuration, contacting dealers early and being flexible on color or options can save months of waiting.

What to watch next

Watch for concrete manufacturing commitments, not just exploration agreements. The real test is whether Ford and GM actually invest in chip design capabilities that reduce dependency on external suppliers. Any announcements about building or co-owning fabrication facilities in the US would signal a major shift. Until then, the shortage will continue to constrain vehicle supplies and drive up prices for popular models.

Key takeaways

• The chip shortage has halved production of some of the most popular vehicles on the road
• Domestic chip production is likely a decade away from meeting current demand
• Partnerships like Ford-GlobalFoundries are exploratory, not immediate solutions
• Automakers are trying to design chips in-house to reduce external dependency
• Shortages may continue affecting feature availability through 2023