Elon Musk Fed Up with the Chip Shortage, He May Buy Tesla a Semiconductor Plant

Tesla could end up having its own chip factory 1 photo
Photo: Tesla
The global shortage of chips has forced carmakers to take unprecedented measures in an attempt to reduce the impact on their operations, but unfortunately for the industry, many ended up temporarily halting production because there was no other way around it.
Most carmakers simply didn’t have enough chips to install on their cars, so suspending the operations and working on reduced hours was most often the only way to go.

But Elon Musk has reportedly come up with another solution to the global chip shortage. The Financial Times writes that Tesla could end up buying its very own chip plant, just to make sure it has permanent access to semiconductors, and therefore it doesn’t need to wait for its orders to be shipped.

This sounds crazy even for a company as rich as Tesla, but it looks like the whole plan of taking over a chip-making facility could end up costing the company no less than $20 billion.

That’s not necessarily a lot given Tesla is currently valued at over $607 billion, while Elon Musk has an estimated net worth of $151 billion, therefore still being one of the richest people on the planet.

But on the other hand, buying a chip factory just for Tesla doesn’t seem to be a priority right now, as the company is said to be involved in direct talks with a series of suppliers in Taiwan, South Korea, and the United States for a different and a lot more affordable approach.

Tesla wants to build chip inventory that would help prevent a shortage, thus trying to convince suppliers to ship orders in advance.

At the end of the day, whatever Tesla is planning to do, there’s a chance it’s not the only carmaker thinking of all sorts of ways to deal with the crazy global chip shortage. But on the other hand, not everybody has Tesla’s financial power, so buying a semiconductor plant could end up becoming Elon’s exclusive wild spending.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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