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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsGM and GlobalFoundries announced a long-term agreement on February 9, 2023, to reserve semiconductor manufacturing capacity for GM’s automotive supply chain at GlobalFoundries’ Malta, New York, facility. The arrangement illustrates a broader shift toward direct automaker-foundry partnerships and domestic supply resilience, but its production volumes, duration and financial terms were not disclosed.
What the GM–GlobalFoundries agreement does
The agreement establishes what GlobalFoundries called a “dedicated capacity corridor” for GM’s chip supply. GlobalFoundries (GF) said it would manufacture chips for GM’s key chip suppliers at its facility in Malta, upstate New York. The companies presented U.S.-based manufacturing as a way to strengthen supply resilience and support automotive innovation. GM’s announcement describes the arrangement and its goals.
This is a supply-chain partnership, not evidence that GM directly purchases every chip made under the agreement. GF manufactures for GM’s key suppliers, which serve the automaker’s chip supply chain. GM executive vice president Doug Parks said the agreement would help establish “a strong, resilient supply of critical technology in the U.S.” and support new technology and features for customers.
How the deal was expected to secure chips for cars
Dedicated capacity gives GM’s supply chain a defined manufacturing corridor at a U.S. foundry, rather than relying only on capacity allocated among many customers. That matters as vehicles incorporate more software and technology. GF’s automotive overview describes GM’s need for more resilient and predictable domestic semiconductor supply as vehicles become increasingly software-defined and technology-rich.
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The public announcement did not disclose the agreement’s duration, wafer volumes or financial terms. The Associated Press reported at the time that GF expected at least two years before chips began flowing, as it installed equipment and the chips were designed. That was a February 2023 expectation, not confirmation of when production actually started or how much capacity is producing today. The Associated Press report also noted the absence of public deal terms.
How this fits the wider U.S. chip push
The GM deal sits within a wider effort to build domestic semiconductor capacity, but later funding and investment announcements should be understood as separate developments—not as results caused by this agreement.
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2024: proposed federal support for GF
In 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. The announcement described preliminary terms; it does not establish that the proposed funding had been paid. See the Commerce Department announcement.
2025: GF’s announced U.S. investment plan
In June 2025, GF announced plans to invest $16 billion in U.S. semiconductor manufacturing and advanced packaging across New York and Vermont. The company named GM among collaborators working to reshore production. This is a company-announced investment plan, not evidence that the full amount has been spent or that the plan was a direct consequence of the 2023 agreement. GF’s investment announcement describes the plan.
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| Figure | What it describes | What it does not establish |
|---|---|---|
| Approximately $1.5 billion | Proposed direct CHIPS Act funding in non-binding preliminary terms announced by the U.S. Department of Commerce in 2024. | Completed payment or the value of the GM–GF supply agreement. |
| $16 billion | GF’s company-announced 2025 U.S. manufacturing and advanced-packaging investment plan. | Completed spending or the financial value of the GM–GF supply agreement. |
What remains unknown about the agreement
- Term: The agreement was described as long-term, but no specific duration was published.
- Volume: Public announcements did not state wafer quantities or chip production volumes.
- Price and value: The deal’s financial terms were not disclosed.
- Current output: The dated 2023 lead-time expectation does not verify when production began or the corridor’s current capacity or output.
Those limits matter when comparing automotive semiconductor partnerships. Useful distinctions include who buys and supplies the chips, whether capacity is dedicated or shared, where manufacturing occurs, which supply-chain participants receive the chips, whether any public funding is proposed or finalized, and whether term, volume and price are public. For GM and GF, the announcement establishes dedicated capacity at Malta for GM’s supply chain, while the deal’s term, volume and price remain undisclosed.
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