GlobalFoundries and Renesas Expand Partnership for US Chip Manufacturing

GlobalFoundries and Renesas have solidified their partnership with a new multi-billion-dollar manufacturing agreement focused on enhancing U.S. semiconductor production. This collaboration grants Renesas expanded access to GlobalFoundries’ process technologies, bolstering supply chain resilience for automotive and industrial chips in the process.

The move underscores the response of major chip suppliers to ongoing supply risks and the increasing demand from smart vehicles and industrial automation. It also provides insight into the process technologies gaining prominence as automakers and industrial OEMs reassess their long-term sourcing strategies.

Expanding access to key process technologies

As part of the extended agreement, Renesas will delve deeper into GlobalFoundries’ portfolio, utilizing technologies such as FDX™ (FD-SOI), BCD, and feature-rich CMOS platforms with non-volatile memory. These technologies will support a wide array of Renesas products, from SoCs and MCUs to power devices crucial for automotive and industrial systems.

Tape-outs under this new collaboration are slated to commence in mid-2026, with manufacturing kicking off in the U.S. and expanding across GlobalFoundries’ global facilities, including fabs in Germany and Singapore, as well as the manufacturing partnership in China. The two companies are also exploring the potential porting of select GF process technologies into Renesas’ in-house fabs in Japan to further fortify manufacturing resilience.

With the increasing electrification and software-defined nature of vehicles, and the growing automation in factories, the chips embedded in these systems are taking on more responsibilities than ever before. They are now tasked with managing radar systems for advanced driver assistance, overseeing EV battery systems, and facilitating secure industrial connectivity. Reliable chip supply has transitioned from a desirable feature to a mission-critical necessity.

Automotive demand drives the strategy

Tim Breen, CEO of GlobalFoundries, emphasized the significance of the partnership in meeting the evolving needs of the automotive sector. He highlighted the pivotal role of semiconductors in powering innovations like advanced driver assistance, battery management, and secure connectivity in modern vehicles. Breen stressed that GF’s platforms are engineered to deliver performance and efficiency under extreme conditions, catering to the demands of cutting-edge automotive technologies.

GlobalFoundries pointed out that with this expanded collaboration, it now produces semiconductors utilized by the top three automotive MCU suppliers globally, underscoring the commitment of car manufacturers to securing long-term semiconductor capacity.

Renesas CEO Hidetoshi Shibata focused on the supply aspect of the partnership, noting that access to a wider range of GF technologies provides the flexibility and supply assurance necessary for meeting customer demands. Shibata highlighted the importance of stable, long-term semiconductor supply with uncompromising quality and reliability, essential for delivering advanced solutions in response to the accelerating trends of electrification, connectivity, and the growing computational requirements driven by AI applications worldwide.

Overall, the agreement reflects the broader industry trend towards regionalizing semiconductor manufacturing while leveraging global footprints. This strategic approach is poised to shape the supply of automotive and industrial chips well into the next decade, ensuring a balance between regional resilience and global competitiveness.