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Ford Inks GlobalFoundries Deal to Create Computer Chips

The automobile giant is trying to address the supply chain shortage.

Currently there's a massive, worldwide shortage of computer chips that is creating supply chain issues and making it harder to rent a car, buy a PlayStation 5 or do nearly anything else that involves a computer.

But as the New York Times reports, Ford ( (F) - Get Ford Motor Company Report) is trying to tackle the problem head on. 

The automotive giant has partnered with semiconductor manufacturer GlobalFoundries to begin developing their own computer chips. 

At first, the partnership was just to develop chips for Ford’s vehicles, but now the company wants to begin manufacturing chips in the United States. 

In related news, General Motors ( (GM) - Get General Motors Company (GM) Report) has announced it will reduce the variety of chips it uses, which the company hopes will help with supply chain issues.

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It has now partnered with the chip company Wolfspeed, which is building a factory in New York State.

The computer chip shortage has highlighted the slow drift of much of manufacturing from America to overseas. 

According to the Semiconductor Industry Association, in 1990 more than a third of all semiconductors, which help create the material used in computer chips, were made in America.

But by last year, that number had fallen to only 12%. 

In June, the Senate approved a $52 billion package of subsidies aimed at bolstering the the construction of more American chip factories.