Ford plans to get rid of the chip shortage crisis with this deal

Ford and chip maker Global Funders said they would work together to increase supplies for the auto company and for the US auto industry in general, but provided little detail on what the deal entailed.

The two companies announced a non-binding agreement that could include increasing production capacity for Ford’s existing range and joint research and development on several potentially essential chip classes. auto future, such as battery management systems and autonomous driving.

Over the past year, a global shortage of chips has prompted Ford and other automakers to scale back car production. Most companies have funneled the chips they receive into their own auto more profitable. This has led automakers to explore ways and alternatives to increase access to chips.

According to CNN, GFS, owned by the Abu Dhabi sovereign wealth fund, has gone public questyear when he sold a stake in his business in an initial public offering worth $ 26 billion. The company said part of the amount raised in the deal will go towards building a second chip factory in a site in Malta or New York.

Ford has not disclosed any terms of the agreement or whether it is making financing or other commitments to maintain capacity in any of the existing or future installations of Global Funds. The two companies said, according to a statement, that the “strategic cooperation” does not involve any co-ownership between the two companies.

“We hope Ford and Global Funds will work together to grow the offering in a more formal way to support our current range of vehicles and needs future”said Chuck Gray, Ford Vice President, in an interview.

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