GM Cuts Semiconductors Supply Deal With GlobalFoundries

General Motors (GM) has signed an agreement with tech manufacturer GlobalFoundries to make semiconductors for GM's various electronics suppliers, CNN Business reported.

Photo Insert: GM's direct relationship with GlobalFoundries will give the automaker a secure supply of chips and will help control costs.

GM's direct relationship with GlobalFoundries will give the automaker a secure supply of chips and will help control costs, said CEO Thomas Caulfield. GM will not have to pay markups to its parts suppliers for semiconductor manufacturing.

The agreement is also part of an overall plan by GM to reduce the number of different chips needed to build GM vehicles.

"The supply agreement with GlobalFoundries will help establish a strong, resilient supply of critical technology in the US that will help GM meet this demand, while delivering new technology and features to our customers,"

Doug Parks, GM executive vice president in charge of purchasing and supply chain, said in an announcement. The automaker's stock has soared by about 23% so far this year.

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