{"id":114240,"date":"2021-05-13T15:44:32","date_gmt":"2021-05-13T15:44:32","guid":{"rendered":"https:\/\/fin2me.com\/?p=114240"},"modified":"2021-05-13T15:44:32","modified_gmt":"2021-05-13T15:44:32","slug":"ford-redesigning-parts-to-use-more-accessible-chips-weighing-direct-deals-with-chip-foundries","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/ford-redesigning-parts-to-use-more-accessible-chips-weighing-direct-deals-with-chip-foundries\/","title":{"rendered":"Ford redesigning parts to use more accessible chips, weighing direct deals with chip foundries"},"content":{"rendered":"<p>DETROIT (Reuters) -Ford Motor Co, in response to the global semiconductor shortage, is redesigning automotive components to use more accessible chips, the No. 2 U.S. automaker\u2019s chief executive said on Thursday.<\/p><figcaption>FILE PHOTO: Ford logo is pictured at the 2019 Frankfurt Motor Show (IAA) in Frankfurt, Germany. REUTERS\/Wolfgang Rattay\/File Photo<\/figcaption><p>Jim Farley, speaking at Ford\u2019s online annual shareholder meeting, also said the company is weighing other strategies for the future, including building a buffer supply of chips and signing supply deals directly with the foundries that make the wafers used in semiconductors.<\/p>\n<p>Automakers typically get their chips through their largest suppliers, not dealing directly with chip makers and the foundries that make the wafers used to assemble the semiconductors.<\/p>\n<p>The chip shortage has caused automakers globally to curtail production. Last month, Ford said the issue would cost it $2.5 billion this year and halve its vehicle production in the second quarter, when the shortage will be at its worst. The shortage has forced Ford at times to idle production of its highly profitable F-150 pickup trucks.<\/p>\n<p>Farley said on Thursday that about 60% of the chips used in Ford\u2019s vehicles are 55-nanometer or larger, what he called \u201cmature nodes\u201d. He said supply of those chips was constrained.<\/p>\n<p>Longer-term changes about how Ford approaches chips are being considered, he said.<\/p>\n<p>\u201cNot only are we redesigning a lot of our components to work with chips that are more accessible &#8230; but we think we need to look at buffer stocks, actual direct contracts with some of the foundries,\u201d Farley said. \u201cWe think that\u2019s going to be a really critical approach to our supply chain as we get more electronic components.\u201d<\/p>\n<p>Ford Executive Chairman Bill Ford also said on Thursday the automaker will look to reinstate the company\u2019s dividend \u201cas soon as possible.\u201d<\/p>\n<p>Ford\u2019s dividend was suspended in March 2020 after the COVID-19 coronavirus pandemic hit in a move to conserve cash. That saved the company $2.4 billion at an annual rate.<\/p>\n<p>Ford shares were up 3% in morning trading.<\/p>\n<p>Source: <a href=\"https:\/\/www.reuters.com\/article\/ford-motor-chips\/update-1-ford-redesigning-parts-to-use-more-accessible-chips-weighing-direct-deals-with-chip-foundries-idUSL1N2N01B4\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>DETROIT (Reuters) -Ford Motor Co, in response to the global semiconductor shortage, is redesigning automotive components to use more accessible chips, the No. 2 U.S. [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":114239,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ford redesigning parts to use more accessible chips, weighing direct deals with chip foundries - 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