Tesla Motors CEO Elon Musk talks to the media beside its Model S.
Nora Tam|South China Morning Post|Getty Images
Tesla CEO Elon Musk stated Friday that the continuous semiconductor crisis will be over by next year.
The tech billionaire stated he believes chip scarcity is a “short-term” issue rather than a long-lasting one.
“There’s a lot of chip fabrication plants that are being built and I think we will have good capacity by next year,” Musk stated at an Italian tech occasion that was streamed online Friday.
Musk did not define which chip plants he was describing.
Chip heavyweights Intel and TSMC have actually revealed strategies to develop brand-new plants in the U.S. however they will not come online for a number of years yet.
Glenn O’Donnell, a vice president research study director at advisory company Forrester, thinks the scarcity might last till 2023.
“Because demand will remain high and supply will remain constrained, we expect this shortage to last through 2022 and into 2023,” he composed in a blogpost in April.
The worldwide chip scarcity has actually had a significant influence on a large range of markets, however the automobile sector has actually been especially severely struck. Big names in the market such as Ford, Volkswagen and Daimler have actually all been required to suspend production at numerous points and cut their production targets as an outcome of an absence of chips.
Impact on Tesla
During the business’s first-quarter profits, Musk stated that Tesla had some supply chain concerns, prior to going on to reference the chip scarcity.
“This quarter, and I think we’ll continue to see that a little bit in Q2 and Q3, had some of the most difficult supply chain challenges that we’ve ever experienced in the life of Tesla and same difficulties with supply chain, with parts — over the whole range of parts. Obviously, people have heard about the chip shortage. This is a huge problem.”
Consulting company AlixPartners forecasted today that the chip scarcity will cost the automobile market $210 billion in income this year alone.
“Of course, everyone had hoped that the chip crisis would have abated more by now, but unfortunate events such as the COVID-19 lockdowns in Malaysia and continued problems elsewhere have exacerbated things,” stated Mark Wakefield, worldwide co-leader of the automobile and commercial practice at AlixPartners, in a declaration.
Carmakers utilize semiconductors in whatever from power steering and brake sensing units, to home entertainment systems and parking video cameras. The smarter vehicles get, the more chips they utilize.
In 2019, Tesla began producing vehicles with customized AI chips that assist on-board software application make choices in action to what’s taking place on the roadway.
Musk stated in July that production of Tesla’s Powerwall item, a backup battery for the house, was “lagging” as an outcome of the chip scarcity.
