Lockheed Martin and GlobalFoundries agree to jointly produce semiconductors for defence systems

Chip maker GlobalFoundries and defence giant Lockheed Martin announced a partnership this week. It aims to secure domestic supplies of semiconductors for defence systems.

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The strategic alliance will provide a range of advanced semiconductors and next-generation chips. In addition, the partnership will apply GlobalFoundries' technologies to improve resilience in microelectronics systems and supply chains.

Right now, all defence contractors are suffering supply chain disruptions caused primarily by a shortage of semiconductor products. The chip shortage was triggered in 2020 by the COVID-19 pandemic. Three years later, the problem is still making itself felt.

The partnership between Lockheed Martin and GlobalFoundries directly supports the chip law passed by the US government. It aims to encourage the leading players in the semiconductor market to move production facilities to the US. The law would provide about $52 billion in government subsidies.

GlobalFoundries has manufacturing facilities accredited by the US government. The plants are located in Vermont and New York and can produce secure chips for sensitive systems.

Source: Reuters