Ford, Microchip Technology announce major expansion of partnership

Washington, D.C. – June 7, 2016 – Ford today announced that it has secured an exclusive seven-year agreement with Silicon Valley-based global chip supplier Microchip Technology to ensure the quality and reliability of the hundreds of millions of components it imports every year to assemble vehicles in the United States.

Today’s agreement marks the third generation of a long-standing arrangement with the industry-leading component supplier. In addition to sourcing and manufacturing the critical chip equipment and nanotech-based microchips, Ford will adopt Microchip’s technologies across the organization for years to come.

Today’s agreement builds on a long-standing relationship between Microchip and Ford that began in 1993, the year Microchip moved its operations to North America from Asia. This move permanently created the automotive industry’s single largest chip-manufacturing site in Essex Junction, Vermont.

“Microchip has provided us with industry-leading technology that has strengthened our entire business, from our electronic solutions to our aftermarket business,” said Jim Scholhamer, Global Head of Supply Chain and Materials for Ford Motor Company. “We are happy to announce that for the third generation of our partnership, Microchip will now be part of the supply chain that has helped sustain, grow and create jobs in America.”

“We are very pleased to continue our long-standing partnership with Ford,” said Steve Laub, President, Microchip Technologies. “Their commitment to U.S. manufacturing as a cornerstone of their model, and their stated goals to increase domestic content, make this a particularly exciting time to expand our partnership.”

Since the first wave of manufacturing in the Essex Junction site, Microchip has increased its manufacturing in the U.S. by 775 percent. Last month, the company announced that its Essex Junction facility will be adding an additional 16,000 square feet of manufacturing space, with an expected completion of the project in the first quarter of 2017.

About Ford Motor Company

Ford Motor Company (NYSE: F) manufactures or distributes vehicles primarily in North America, Europe, Australia and Asia. Its vehicles are marketed through five operating segments: Automotive, Financial Services, Volvo Cars, Land Rover and Tesla. The automotive segment develops, manufactures and markets vehicles and parts for sale in North America, Europe, Australia and Asia. As of March 31, 2016, the company had 129,913 employees and operated 180 plants worldwide. For more information, please visit

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