GlobalFoundries Inc. (GF), a multinational semiconductor contract manufacturing and design company, and Ford Motor Company
This partnership, which does not involve cross-ownership between the two companies, will help Ford to accelerate its production and delve into more research and development that will eventually be reflected in the sales report.
“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,” said Jim Farley, Ford president and CEO. “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.”
The companies have not disclosed the financial aspects of the agreement or how much contribution will be of GlobalFoundries to increase the supplies to Ford in the near term.
GF and Ford will jointly venture into expanding semiconductor manufacturing opportunities to support the automotive industry.
“GF is committed to building innovative alliances with the world’s leading companies to enable the features in products that are pervasive throughout people’s lives,” said Tom Caulfield, GF CEO.
“Our agreement with Ford is a key step forward in strengthening our cooperation and partnership with automakers to spur innovation, bring new features to market faster, and ensure long-term, supply-demand balance.
The partnership comes at a time when the automobile sector has been hit hard by the semiconductor shortage. Owing to this factor, automakers including Ford, are forced to cut down their production. This deal of “self-reliance” also comes after the Biden administration urged companies to onshore manufacturing supply chains, including semiconductor chips.
On the dashboard of Quantale, the impact of the announcement on the social engagement for the stock of Ford amongst the users of Twitter and Reddit will be printed as the day proceeds. But on Wednesday, the stock saw a fall of more than 41% in its stock activity, whereas a rise of 21.48% in its trading volume was observed.
A total of 80.86 million shares of the stock exchanged hands on Wednesday, 390 thousand above the average of 80.47 million. The stock closed at $19.96.
Today, the shares of Ford opened at $20.16, up 1.02% from the previous day’s close.
GlobalFoundries stock opened at $67.39, up 7.48% from its previous close of $62.70.