Ford (F) is starting to see some relief in the semiconductor shortage that has severely hurt vehicle production at automakers globally this year.
CEO Jim Farley told Yahoo Finance Live the flow of semiconductors has begun to improve. Conditions in the third quarter have been better compared to the fourth quarter, Farley explained. Even still, Farley acknowledged the chip supply shortage will be an issue for the auto industry into 2022.
At the moment, investors appear to be looking beyond the chip shortage.
Shares of Ford popped 4% in pre-market trading Tuesday after the Detroit-based auto giant said late Monday it will partner with SK Innovation to invest $11.4 billion to construct two "mega-sites" — one in Tennessee and the other in Kentucky — that will build electric trucks and batteries. Ford's portion of the investment — $7 billion — is the largest manufacturing investment in the company's 118-year-old history.
Stanton, Tennessee will see the construction of Blue Oval City, which Ford says will aid in building an "expanded" electric-truck lineup. Currently, Ford has released the all-electric SUV called the Mach-E and soon will begin producing the all-electric F-150 Lightning. The 3,600-acre campus will cover nearly 6 square miles, at a total of $5.6 billion. It's expected to create 6,000 jobs.
No less impressive is the other mega-campus slated to open in Glendale, Kentucky. Dubbed BlueOvalSK Battery Park, it will be a dedicated battery manufacturing complex for Ford's expanding roster of electric vehicles. The 1,500-acre site will cost $5.8 billion to build and create 5,000 jobs. The location is targeted to open in 2025.
Farley told Yahoo Finance Live the investment is akin to planting a major flag in the ground in its efforts to lead the EV market.