General Motors inks chip supply agreement with GlobalFoundries
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General Motors Co. (NYSE:GM) and GlobalFoundries (GFS) jointly announced a long-term chip supply agreement on Thursday.

Under the terms, GlobalFoundries (GFS) will manufacture chips for the automaker at an upstate New York plant. The exclusive agreement is expected to allow chips to be produced in higher volumes and stave off shortages such as those seen by the auto manufacturer in recent years.

"We see our semiconductor requirements more than doubling over the next several years as vehicles become technology platforms,â Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain, commented. âThe supply agreement with GlobalFoundries will help establish a strong, resilient supply of critical technology in the U.S. that will help GM meet this demand, while delivering new technology and features to our customers.â

Major lawmakers including Senate Majority Leader Chuck Schumer and New York Governor Kathy Hocul commented approvingly on the benefits of the deal, crediting CHIPS Act legislation for making the deal possible. Hochul indicated that New York aims to become a âmajor hub for semiconductor manufacturingâ in the US. 

Shares of General Motors (GM) rose 2.57% shortly after the announcement while GlobalFoundries (GFS) shares jumped 3.01%.
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