With supply short, Ford dips toe into computer chip business

Ford Motor Co. is in talks with a computer chip maker GlobalFoundaries Inc. to shore up its semiconductor supplies as it tries to avoid factory shutdowns in the future

DETROIT -- Ford Motor Co. is in talks with a computer chip maker to shore up its semiconductor supplies and avoid a repeat of this year's auto factory shutdowns caused by semiconductor shortages.

Few details of the nonbinding agreement with GlobalFoundaries Inc. were released, but the deal aims to boost supplies with joint development of automotive-grade chips. And it could result in joint manufacturing to support the auto industry, the companies said Thursday in a prepared statement.

Ford has been hit particularly hard by a global chip shortage that has weighed on nearly every automaker. Like other companies, Ford at times has had to temporarily close auto plants and even build models without some computers, and installing them ater.

The company's U.S. sales fell 27% from July through September and it lost 2.4 percentage points of market share largely because it couldn't produce enough vehicles to meet consumer demand.