Ford partners with GlobalFoundries to increase chip supplies

Ford Motor Co and chip manufacturer GlobalFoundries Inc on Thursday said they plan to work together to boost supplies for the automaker's vehicles and the broader U.S. auto industry but gave few details about what the deal entails.

The two companies announced a non-binding agreement that could involve increasing production capacity for Ford's current lineup and performing joint research and development on several categories of chips that are likely to be key to future cars, such as battery-management systems and self-driving systems.

Over the past year, a global chip shortage has caused Ford and other automakers to curtail vehicle production. Most companies have directed the chips they receive to their most profitable vehicles. That has led automakers to explore ways to boost access to chips.

Majority owned by Abu Dhabi's sovereign wealth fund, GlobalFoundries became publicly traded this year when it sold a stake in its business in a $26 billion initial public offering.