Amid looming chip shortages, GlobalFoundries and Renesas unveil a multibillion-dollar pact to power smart vehicles and factories, reshaping semiconductor supply chains.
GlobalFoundries has announced a multibillion-dollar expansion of its partnership with Japan’s Renesas Electronics Corp., aimed at addressing rising semiconductor demand in the automotive and industrial sectors.
The agreement will give Renesas broader access to GlobalFoundries’ technology platforms, including FDX FD-SOI, BCD and CMOS with embedded memory, with production tape-outs expected to begin in mid-2026.
The collaboration is positioned as part of wider efforts to strengthen US semiconductor manufacturing capacity while ensuring secure supply chains for Renesas. The move comes as carmakers and industrial firms seek to avoid a repeat of the pandemic-era chip shortages, which disrupted production worldwide.
The manufacturing under the agreement will begin in the United States, before extending to facilities in Germany and Singapore. The companies are also exploring the use of GlobalFoundries’ processes within Renesas’ Japanese fabs.
GlobalFoundries and Renesas said the partnership will support the development of chips required for advanced driver assistance systems, battery management and industrial connectivity. These components are increasingly critical as electric vehicles (EVs) and automated factories become more prevalent.
GlobalFoundries chief executive Tim Breen described semiconductors as “the foundation of innovation” in the automotive sector, while Renesas CEO Hidetoshi Shibata emphasised the importance of reliable supply and flexibility for customers.
Meanwhile, the industry has warned of renewed risks linked to memory chip shortages, driven by the rapid expansion of AI data centres.
The deal follows GlobalFoundries’ January acquisition of Synopsys’ processor intellectual property business, expected to close later this year, as part of its push into AI-related technologies.
Renesas, on the other hand, has adjusted its long-term revenue targets and restructured operations following setbacks linked to partner bankruptcies. Earlier in February 2026, it agreed to sell its timing business to SiTime Corp. in California, sharpening its focus on embedded semiconductor solutions.
