- The Pentagon plans to place up to $2 billion in rush orders by early March for customized semiconductors used in weapons like the B-2 bomber before the shut down of production line, Bloomberg reports.
- Globalfoundries Inc GFS sold the factory in Fishkill, New York, that produced the specialized chips used in GPS-dependent systems to ON Semiconductor Corp ON. The new owner will not make any more of them.
- The Defense Department is confronting its looming supply crunch amid a global chip crisis used in consumer items from mobile phones to autonomous vehicles, markets where GlobalFoundries is expanding its production.
- The Pentagon would place an initial $885 million by December 15 with U.S. contractors. The Pentagon would have to place the remainder of the $2 billion in orders by March 3, the report added.
- “For certain programs and technologies, we are meeting the DoD’s needs by manufacturing large volumes of chips sufficient for the lifetime of the program,” GlobalFoundries said.
- “In other instances, we are partnering with the DoD to extend the lifecycle of certain technologies manufactured at Fab 10 by transitioning the manufacturing of their chips to other GF Fabs.”
- Price Action: GFS shares traded lower by 4.49% to $60.77 in the premarket session on the last check Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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