What Chip Shortage? Tesla To Pay Upfront To Secure Supply

[Daniel Nenni]

I'm not sure what "chip plant" Elon is going to purchase but it would certainly be fun to have him inside our ecosystem, absolutely. Of course, Elon may be talking about an actual plant that grows chips....

Tesla Looks To Circumvent Chip Shortage By Paying Up Front

Tesla is also in preliminary talks to purchase a plant to help with the global semiconductor chip shortage.

www.ibtimes.com

As the auto industry struggles with a semiconductor chip shortage that has forced temporary production shutdowns at a majority of automakers’ plants, Tesla (TSLA) is looking to circumvent the issue by paying in advance for a supply of the chips.

According to Financial Times, Tesla is in talks with suppliers in the U.S., Taiwan and South Korea looking to secure a steady stream of chips. Tesla is also exploring options to buy a chip plant.

The chips that Tesla is looking to procure are the latest generation that are mass-produced primarily in Taiwan and South Korea. Sources for the news outlet suggest discussions of a plant purchase is in the beginning stages but said an acquisition would be difficult considering its “prohibitive costs.”

 

[Daniel Nenni]

TSMC Says Can Catch up with Auto Chip Demand by End June – CBS

TAIPEI (Reuters) – Taiwan Semiconductor Manufacturing Co Ltd (TSMC) expects to be able to catch up with the “minimum requirement” of customer demand for auto chips by the end of June, its chairman told U.S. broadcaster CBS.

www.fxempire.com

 

[hist78]

I'm not sure what "chip plant" Elon is going to purchase but it would certainly be fun to have him inside our ecosystem, absolutely. Of course, Elon may be talking about an actual plant that grows chips....

Tesla Looks To Circumvent Chip Shortage By Paying Up Front

Tesla is also in preliminary talks to purchase a plant to help with the global semiconductor chip shortage.

www.ibtimes.com

As the auto industry struggles with a semiconductor chip shortage that has forced temporary production shutdowns at a majority of automakers’ plants, Tesla (TSLA) is looking to circumvent the issue by paying in advance for a supply of the chips.

According to Financial Times, Tesla is in talks with suppliers in the U.S., Taiwan and South Korea looking to secure a steady stream of chips. Tesla is also exploring options to buy a chip plant.

The chips that Tesla is looking to procure are the latest generation that are mass-produced primarily in Taiwan and South Korea. Sources for the news outlet suggest discussions of a plant purchase is in the beginning stages but said an acquisition would be difficult considering its “prohibitive costs.”

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According to that Financial Times article:

"But most observers believe that acquiring and running a chip facility would be a step too far for carmakers such as Tesla.

“They see the price tag for the factory and they go back and get in line,” said Velu Sinha, a partner at Bain in Shanghai."

 

[Portland]

I always saw tesla as the "apple" of cars and they have a partnership with tsmc. Apple's competitor Samsung that is always a step behind makes their own chips.

Tesla's are electric so it may make sense. As a commuter vehicle they are my favorite.

If elon musk is authentic or another bill gates? I don't really know.

 

[Daniel Nenni]

According to that Financial Times article:

"But most observers believe that acquiring and running a chip facility would be a step too far for carmakers such as Tesla.

“They see the price tag for the factory and they go back and get in line,” said Velu Sinha, a partner at Bain in Shanghai."

I would caution people not to tell Elon what he can and cannot do. It will be interesting if Elon does something disruptive to secure his supply chain. Exciting times, absolutely.

 

[Portland]

Let's be honest it's team elon musk just like team bill gates or team whomever. Paypal, tesla, space x, his ai ventures is too much for a single person.