As supplies dwindle, Ford plunges into the computer chip business.

Ford Motor Company is in talks with Global Foundries Inc., a computer chip maker, to expand its supply of semiconductors as it seeks to avoid future factory closures.

DETROIT – Ford Motor Co. Is in talks with a computer chip maker to reduce its supply of semiconductors and avoid repeating the auto factory shutdown this year due to a shortage of semiconductors.

GlobalFoundaries Inc. Some details of the non-binding agreement with were released, but the agreement aims to increase supply with the joint development of automotive-grade chips. And that could lead to joint manufacturing to support the auto industry, the companies said in a statement on Thursday.

Ford in particular has experienced a global chip shortage that weighs on almost every carmaker. Like other companies, Ford sometimes has to shut down auto plants temporarily and even build models without some computers, and install them.

From July to September, the company’s U.S. sales fell 27 percent and it lost 2.4 percent of its market share because it could not produce enough vehicles to meet consumer demand.

“This agreement is just the beginning, and is an important part of our plan to integrate key technologies and capabilities vertically,” said CEO Jim Farley, who is urging Ford to further develop its supply chain. To ensure that the parts remain in place.

Spokeswoman Jennifer Flack said the companies are in the “Memorandum of Understanding” phase of their relationship but want to work together to design the chips and potentially benefit from their manufacturing experience.

Global Foundries, located about three hours north of New York City in the town of Malta, states on its website that it has chip factories in the United States, Germany and Singapore, and the world’s largest self with more than 15,000 employees. Mukhtar is one of the leading semiconductor manufacturing companies.

The statement said that financial details of the agreement were not released and did not include cross-ownership between the companies.

Chip shortages have their roots in the spring of 2020, when global carmakers were forced to close factories to prevent the spread of the novel corona virus. Factories returned online sooner than expected with safety precautions, but by then, many chip makers had shifted production to high-demand consumer electronics.

Industry executives and analysts predict that the decline will continue until next year, and that carmakers will not be able to return to normal production until 2023.

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