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Ford strikes deal to strengthen chip supply after repeated plant shutdowns
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Ford strikes deal to strengthen chip supply after repeated plant shutdowns

Ford strikes deal to strengthen chip supply after repeated plant shutdowns

Ford's Hank the Robot is shown at the Chicago Auto Show.

It's been a stressful year for Ford employees at the Chicago Assembly Plant and Chicago Stamping Plant.

The Dearborn, Michigan-based automaker has frequently had to idle operations in the Calumet Region because of a lack of semiconductors that power lane assist, parallel parking assist, rearview cameras and many other technologies that come standard in modern vehicles.

Car lots have sat half-vacant across Northwest Indiana much of the year because Ford and other automakers have lacked the chips to supply the dealerships with enough vehicles to keep up with demand.

So Ford is doing something about it.

Ravenfell Manor is an elaborate yard haunt at 715 W Alice St in Kouts.

The automaker reached a deal with GlobalFoundries, Inc., to boost chip supplies and development in the United States.

“It’s critical that we create new ways of working with suppliers to give Ford — and America — greater independence in delivering the technologies and features our customers will most value in the future,” said Jim Farley, Ford president and CEO. “This agreement is just the beginning, and a key part of our plan to vertically integrate key technologies and capabilities that will differentiate Ford far into the future.”

The non-binding agreement would allow GlobalFoundries to create chips for Ford that could be used in battery management systems, in-vehicle networking and advanced driver-assistance systems.

Ravenfell Manor is an elaborate yard haunt at 715 W Alice St in Kouts.

“GF is committed to building innovative alliances with the world’s leading companies to enable the features in products that are pervasive throughout people’s lives,” said Tom Caulfield, GF CEO. “Our agreement with Ford is a key step forward in strengthening our cooperation and partnership with automakers to spur innovation, bring new features to market faster, and ensure long-term, supply-demand balance.”

Ford also will explore semiconductor manufacturing possibilities in the United States.

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Business Reporter

Joseph S. Pete is a Lisagor Award-winning business reporter who covers steel, industry, unions, the ports, retail, banking and more. The Indiana University grad has been with The Times since 2013 and blogs about craft beer, culture and the military.

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