According to Reuters, General Motors and chip manufacturer Global Foundries announced a long-term agreement on Thursday that Global Foundries will provide chips made in the United States to General Motors.

Global Foundries said that the agreement, with a term of at least three years, was the first of its kind and would provide special capacity for GM's major chip suppliers at its manufacturing plant in northern New York.

Tom Caulfield, CEO of GlobalFoundries, said that supporting the US manufacturing industry made the company competitive in seeking some funds. This cooperation is for GM to go directly to the manufacturing agent factory, reserve the capacity to meet its needs, and make appropriate joint investment with the agent factory to achieve the best economic benefits.

Biden mentioned the Chip and Science Act again in his State of the Union address not long ago, which will provide up to US $52.7 billion in government subsidies and US $24 billion in tax relief for the US semiconductor industry.

Caulfield also said that GlobalFoundries is negotiating with almost all major global automakers, and this GM agreement does not mean that it will not sign agreements with other automakers.

Ford Motor said last week that its profit in the fourth quarter of last year was $2 billion lower than expected due to its inability to purchase chips and other supply chain problems.

The shortage of automobile chips has greatly changed the way of communication between automobile manufacturers and chip suppliers. They had little direct contact before.

The report said that several automobile companies have now established teams and departments to better ensure the supply of chips.