Spokeswoman Jennifer Flake said the companies are at the “memorandum of understanding” phase of their relationship but want to work together to design chips and possibly leverage their manufacturing experience.
GlobalFoundaries, based about three hours north of New York City in the town of Malta, says on its website that it has chip factories in the U.S., Germany and Singapore, and is among the world's largest independent semiconductor makers with more than 15,000 employees.
Financial details of the agreement were not released, it does not involve cross-ownership between the companies, the statement said.
The chip shortage has roots to the spring of 2020 as global automakers were forced to shutter factories to stop the spread of the novel coronavirus. The factories came back online sooner than expected with safety precautions, but by then, many chip makers had shifted production to high-demand consumer electronics.
A fire at an automotive chip plant in Japan exacerbated the problem. Since most chips are made in Asia, the shortage highlighted a lack U.S. chip-making capacity that has drawn the attention of the Biden administration.
Industry executives and analysts predict that the shortage will last well into next year, and that automakers may not get back to normal production until 2023.