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Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →GM and GlobalFoundries announced a long-term agreement on February 9, 2023, to reserve dedicated chip-manufacturing capacity for GM’s automotive supply chain at GlobalFoundries’ Malta, New York, facility. The deal illustrates a push toward closer automaker–foundry relationships and more resilient domestic supply, but its term, output and financial value were not disclosed.
What did GM and GlobalFoundries agree to?
The companies described a dedicated “capacity corridor” for GM’s chip supply. GlobalFoundries (GF) said it would manufacture chips for GM’s key chip suppliers at its semiconductor facility in Malta, upstate New York. That makes the arrangement a supply-chain partnership: the announcement does not establish that GM would directly buy every chip covered by it. GM’s February 9, 2023 announcement
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GM said the agreement would help ensure a resilient supply of critical technology as vehicles incorporate more software and electronic features. Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain, said: “The 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.”
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Automotive production depends on a network of chipmakers and suppliers. Reserving manufacturing capacity in the United States for chips used in GM’s supply chain gives those suppliers a defined domestic manufacturing route. GF’s automotive overview describes GM’s need for more resilient, predictable domestic semiconductor supply as vehicles become more software-defined and technology-rich. GlobalFoundries’ automotive overview
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A dedicated corridor is not the same as a public guarantee of a specific number of chips, a particular delivery schedule, or immunity from every supply disruption. The announcement establishes the intended arrangement and location, not how much capacity would be available or how it would be allocated in practice.
What terms and production details are public?
| Deal detail | What was disclosed |
|---|---|
| Manufacturing location | GF’s facility in Malta, New York |
| Supply-chain role | GF would manufacture for GM’s key chip suppliers |
| Agreement length | Not stated in the company announcement or Associated Press report |
| Production volume | Not stated in the company announcement or Associated Press report |
| Financial value or price | Not stated in the company announcement or Associated Press report |
| Expected time to initial chip flow | In February 2023, the Associated Press reported GF expected at least two years as equipment was installed and chips were designed. This was a contemporaneous expectation, not confirmation that production began on a particular date. |
The timing estimate should not be treated as evidence of current output. The public sources cited here do not verify whether chips are now flowing through the dedicated corridor, how many are being made, or which vehicle programs use them. Associated Press report on the agreement
How does the agreement fit the wider U.S. chip push?
Later announcements provide context for U.S. semiconductor manufacturing, but they are separate developments—not the disclosed financial terms of GM’s supply deal and not proof that the 2023 agreement caused later funding or investment plans.
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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitches- February 2024: The U.S. Department of Commerce announced non-binding preliminary terms for approximately $1.5 billion in proposed direct CHIPS Act funding for GF. Commerce said a proposed Malta expansion for automotive capacity included a strategic agreement with GM. These were preliminary terms, not evidence in that announcement of a completed payment. U.S. Department of Commerce announcement
- June 2025: GF announced a plan to invest $16 billion in U.S. semiconductor manufacturing and advanced packaging across New York and Vermont, naming GM among companies collaborating with GF to reshore production. This was a company-announced investment plan, not confirmation that the spending was completed or a direct result of the 2023 deal. GlobalFoundries’ 2025 investment announcement
The $1.5 billion figure refers to proposed federal direct-funding terms; the $16 billion figure refers to GF’s planned investment. Neither is the publicly disclosed value of the GM–GF supply agreement.
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Does the deal establish a new partnership trend?
It is one example of automakers and semiconductor manufacturers working more directly to strengthen supply chains, with domestic capacity as part of the strategy. The GM–GF announcement supports that broader trend framing, but it does not show that this was the first such industry arrangement or that it triggered later federal or corporate investment decisions.
Its specific significance is narrower and more concrete: GM’s supply chain was to have dedicated manufacturing capacity at a U.S. foundry, with GF producing for GM’s key chip suppliers. The public announcement leaves the operational scale and current production status unresolved.
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