Stung by lost vehicle production, General Motors and Ford are moving to open new sources of critical semiconductors for the North American market.
The moves by both companies confirm the steadily increasing role of technology integrated into modern automobiles — technology that is only increasing in complexity.
GM President Mark Reuss told a conference organized by Barclays Bank, “We see semiconductors more than doubling as we become more of a tech platform.” GM is in the process of designing a family of three distinct “microcontrollers,” which will allow engineers and developers to devise new features for consumers, Reuss said.
GM’s strategy
GM plans to enter partnerships with seven different makers of semiconductors, including Qualcomm, STM, TSMC, Renesas, NXP, Infineon and ON Sem, he said. The goal is to guarantee enough chips to build 10 million units, he added.
Reuss also said GM expects the chips used in its future microcontrollers to be made in the United States or Canada. The combination of guaranteed contracts and North American sourcing should minimize the threat of disruptions like those faced by automakers this year.
A shortage of semiconductors caused by a series of mishaps ranging from power outages in Texas, fires in Japan, floods in Taiwan and outbreaks of COVID-19 in Malaysia and Vietnam disrupted production of new vehicles around the world.
Ford, like GM, has been hit hard by the shortage of semiconductors, also is eyeing on new strategy to secure a supply of chips.
Ford signs new deal for chips
The automaker signed a non-binding agreement with GlobalFoundries, which produces “feature-rich” semiconductors, to advance semiconductor manufacturing and technology development within the United States and to boost chip supplies for Ford and the U.S. automotive industry generally
“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 agreement calls for semiconductor maker to expand the supply lines for Ford’s current vehicle line-up. The pair will also conduct joint research and development to address the growing demand for feature-rich chips.
Future development could include semiconductor solutions for ADAS, battery management systems, and in-vehicle networking for an automated, connected, and electrified future. GF and Ford also will explore expanded semiconductor manufacturing opportunities, Ford officials said.