Inside the Deal to Secure US Semiconductor Supply Chains

Supply chain resilience has become a top priority for the global electronics industry as the demand for smart vehicles and automated factories grows.

GlobalFoundries and Renesas Electronics Corporation have responded by expanding their strategic collaboration through a multi-billion-dollar manufacturing partnership. This agreement is designed to broaden the access Renesas has to the manufacturing technologies of GlobalFoundries, ensuring a stable supply of chips for mission-critical applications.

The deal aligns with efforts to strengthen domestic semiconductor production in the United States while providing localised production options for global customers. This shift towards more secure and resilient supply chains is intended to mitigate risks associated with international logistics.

Global footprint provides regional supply assurance

The partnership uses the globally distributed manufacturing footprint of GlobalFoundries, which includes facilities in the US, Germany and Singapore.

Production of new chip designs is scheduled to begin in mid-2026, starting in the US before extending to these international sites. This geographic diversity provides customers with flexibility and greater assurance that their supply of semiconductors will not be interrupted by regional disruptions.

Reliable semiconductor supply is essential for industrial systems that power secure connectivity and manage energy in automated factories. By onshoring essential technologies, the companies are reinforcing leadership in manufacturing while addressing the needs of customers developing increasingly advanced and connected products.

Shaping the world with essential semiconductors

GlobalFoundries is a key manufacturer of semiconductors for automotive, IoT and communications markets, operating a global network of fabs focused on security and longevity.

Renesas Electronics Corporation is a global producer of microcontrollers and embedded processing, providing solutions for automotive, industrial and infrastructure applications.

Renesas integrates analogue, power and connectivity technologies to create combinations that speed up product development.

GlobalFoundries currently produces chips for the top three global automotive microcontroller manufacturers.

Enhancing resilience through in-house fabrication options

A unique aspect of this expanded partnership is the potential for porting select process technologies from GlobalFoundries into the in-house fabs of Renesas in Japan.

This move is designed to further enhance manufacturing resilience and support future capacity requirements. Renesas will gain access to feature-rich CMOS and BCD technologies, which are essential for its power devices and microcontrollers.

These differentiated platforms are engineered for high efficiency and reliability, making them ideal for systems that must function under extreme conditions. By integrating these technologies into multiple production sites, the companies are building a supply chain capable of meeting the rapidly growing compute requirements driven by artificial intelligence.

Reliable supply for future automotive needs

“This partnership strengthens a proven relationship and underscores GF’s role as a trusted partner for essential semiconductor technologies,” said Tim Breen, CEO of GlobalFoundries.

“The automotive landscape is changing fast. Semiconductors are now the foundation of innovation, powering advanced driver assistance, battery management and secure connectivity. These systems demand performance and efficiency under extreme conditions, and GF’s differentiated platforms are built for that.

"We’re focused on delivering what matters most: reliable supply and the technologies that enable the vehicles of tomorrow."

Meeting the surge in global demand

“Access to a broader range of GF technologies gives us the flexibility and supply assurance our customers need,” said Hidetoshi Shibata, CEO of Renesas.

“This expanded partnership enables a stable, long-term supply of semiconductors while ensuring the highest quality and reliability for our products. These capabilities are essential as we deliver advanced solutions, with demand for electrification and connectivity – and the rapidly growing compute requirements driven by AI applications – accelerating worldwide."