Ford Dropped a Bombshell on Chips. GlobalFoundries Stock Is Taking Off.

[AzScorpion]

Some good news for a change. Looks like Ford made a huge deal that will help them with the chip shortage.

https://www.markettradingessentials...on-chips-globalfoundries-stock-is-taking-off/

Ford (ticker: F) and GlobalFoundries (GFS) on Thursday announced a collaboration to manufacture automotive semiconductors in the U.S. The alliance shows that after their difficult 2021, car companies want more control over the supply of chips that enable almost all of the features common on new automobiles.

“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,” said Ford CEO Jim Farley in a statement. “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.”

“GF is committed to building innovative alliances with the world’s leading companies,” said GlobalFoundries CEO Tom Caulfield in the statement. “Our agreement with Ford is a key step forward in strengthening our cooperation and partnership with auto makers to spur innovation, bring new features to market faster, and ensure long-term, supply-demand balance.”

GlobalFoundries makes semiconductors designed by others. It has manufacturing capacity all over the world, including in the U.S.

The new alliance doesn’t involve cross ownership stakes between the firms. It will deal with semiconductor supply as well as joint research and development to address the growing demand for more complicated chips as cars become electrified—and smarter.

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[staryoshi]

The real news is that they're going to work on modernizing auto chips. Get them on smaller processes so they can make more of them per wafer and avoid de-prioritization because they're using old silicon.

 

[AdamHarris]

See! Ma Ford gonna take care of us!..unless we buy a Chrysler..er Fiat..er Stalantis. Lol.​

 

[AdamHarris]

The real news is that they're going to work on modernizing auto chips. Get them on smaller processes so they can make more of them per wafer and avoid de-prioritization because they're using old silicon.

Yea I know! I hate de-prioritization...can’t stand that shit..

Um..could you explain what that is? You know, for the less education-pheasants among us.. ?

 

[AzScorpion]

See! Ma Ford gonna take care of us!..unless we buy a Chrysler..er Fiat..er Stalantis. Lol.​

Yeah but you still won't be able to get you vehicle for 4 years. ?

 

[AdamHarris]

I pray to Buddha every morning nothing happens to my Ranger out on the road lol.

 

[staryoshi]

Yea I know! I hate de-prioritization...can’t stand that shit..

Um..could you explain what that is? You know, for the less education-pheasants among us.. ?

Cliff-notes: Manufacturers would rather take a chunk of silicon and make more, higher-margin chips than fewer lower-margin chips. Especially after automakers scaled back chip orders when the pandemic got going because they thought demand would drop.

It's cool that they're going to work to move on from early 2000s technology finally.

 

[CATX]

Another reason that I'm happy I have a Ford in the driveway. We need to build more things at home and stop funding foreign governments that don't have our interests in mind. I'd like to see us do something like Germany does and decentralize manufacturing - make small towns across the US specialize in building certain things. This was actually a Ford idea once: Henry Ford: Village Industries - The Henry Ford

 

[staryoshi]

Another reason that I'm happy I have a Ford in the driveway. We need to build more things at home and stop funding foreign governments that don't have our interests in mind. I'd like to see us do something like Germany does and decentralize manufacturing - make small towns across the US specialize in building certain things. This was actually a Ford idea once: Henry Ford: Village Industries - The Henry Ford

I work in a small town that's an industry hub kind of like you've outlined.

That said, I don't care where something is made if it's made well. I'm proud that my Forester was built in Japan, actually.

 

[Tom_C]

Ok. I'm good with this. The thing that I think about though (after working in semiconductor industry) is, it takes a long time to ramp up production. And, using old tech isn't really a bad thing.

I agree with the comment that new tech can build more product on the same size wafer. But, having new tech for stuff that doesn't require 'new tech' isn't really that important.

Remember, we sent a man to the moon with tech that is equivalent to 30-40 year old cars. Cars don't really need cutting edge tech, in terms of processor speed.

 

[CATX]

I work in a small town that's an industry hub kind of like you've outlined.

That said, I don't care where something is made if it's made well. I'm proud that my Forester was built in Japan, actually.

I have a Japanese car, too. And I appreciate the quality. I think there is a difference between buying products made in Japan and buying products made in a country like China.

Do you take pride in buying products made in China? Some things manufactured in China are of high-quality, too. They are also often inexpensive (artifically inexpensive when you account for how they achieve low prices), ubiquitous, and hard to avoid. Each purchase also strengthens the Chinese economy, and emboldens human rights violations and global hegemony.

Do you really not care where something is made?

 

[P. A. Schilke]

Some good news for a change. Looks like Ford made a huge deal that will help them with the chip shortage.

https://www.markettradingessentials...on-chips-globalfoundries-stock-is-taking-off/

Hi Dave,

Hope you recovered from the Covid with no lasting affects. When I hired into Ford we had suppliers supply us with parts. Then as things progressed we had suppliers supply systems like total seating, not just Seat Covers, then we "progressed" to suppliers designing and supplying total systems. Each step impacted quality negatively until Jim Farley recognized that Jim Hackett was out of his league and we start bringing things back in house. As much as I malign Sterling axle, they are heads and tails above Dana at this juncture. So the pendulum swings back from the supplier design to Ford. Then next step is to the Vertical Integration of the original Rouge Complex where Ford made every thing back to this some 100 years later.

best,
Phil

 

[AzScorpion]

Hi Dave,

Hope you recovered from the Covid with no lasting affects. When I hired into Ford we had suppliers supply us with parts. Then as things progressed we had suppliers supply systems like total seating, not just Seat Covers, then we "progressed" to suppliers designing and supplying total systems. Each step impacted quality negatively until Jim Farley recognized that Jim Hackett was out of his league and we start bringing things back in house. As much as I malign Sterling axle, they are heads and tails above Dana at this juncture. So the pendulum swings back from the supplier design to Ford. Then next step is to the Vertical Integration of the original Rouge Complex where Ford made every thing back to this some 100 years later.

best,
Phil

Hi Phil,

I'm doing much better (still a little tired) thanks for asking! I wish the days of making everything in house would come back as it seems you can regulate your QC much better. Take the Bronco hardtop for example. It's been a disaster from the start and now even the second batch has the same issues. Yes Ford sent their people over to Webasto to take over the operations but there's nothing like having it in your own house. You have more eyes on the operations that way and others can help out as they're close by.

I just hope everyone learned a valuable lesson these past couple years about not relying on other countries (especially ones who hate us) and not put all their eggs in one basket so to speak.

 

[DukeCanBuildit]

Another reason that I'm happy I have a Ford in the driveway. We need to build more things at home and stop funding foreign governments that don't have our interests in mind. I'd like to see us do something like Germany does and decentralize manufacturing - make small towns across the US specialize in building certain things. This was actually a Ford idea once: Henry Ford: Village Industries - The Henry Ford

I like the sound of that - reminds me of stories my dad told me of Canada’s auto mfg glory days - all sorts of parts plants dotted around the “Golden Horseshoe” - some owned by auto makers, some independent. Most importantly, all were running at full tilt and they were good paying jobs that sustained small cities and towns. Can it be that way again?

 

[staryoshi]

Remember, we sent a man to the moon with tech that is equivalent to 30-40 year old cars. Cars don't really need cutting edge tech, in terms of processor speed.

It's not the speed that's the issue, it's the physical size. Fabricators won't pony up to build new plants/capacity for old silicon.
https://fortune.com/2021/09/17/chip-makers-carmakers-time-get-out-semiconductor-stone-age/

Do you really not care where something is made?

I'll modify my original comment, because I do care to an extent. It's more that I don't care if something is made in America if it is made well.

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