Semiconductor shortage to go away soon: Elon Musk

Tesla chief Elon Musk is confident that the ongoing global semiconductor shortage will soon be resolved. Though many would disagree with that, Musk feels that this crisis is not long term. However, Tesla CEO did accept earlier this year that the semiconductor shortage has affected the EV major as well.

Elon Musk said the upcoming chip fabrication plants will help to solve this crisis. “There’s a lot of chip fabrication plants that are being built and I think we will have the good capacity by next year," he was quoted saying in a report by Electrek. It has been reported earlier that Tesla managed to stay afloat during the first quarter after the EV maker switched to new microcontrollers. “In Q1, we were able to navigate through global chip supply shortage issues in part by pivoting extremely quickly to new microcontrollers, while simultaneously developing firmware for new chips made by new suppliers," he said in the report.

Other media reports have suggested Tesla even considered buying its semiconductor plant in order to solve the problem. Despite Elon Musk's optimistic view about the chip crisis, many eminent automakers have said that the semiconductor shortage may linger for a few years.

Started during the pandemic, the chip crisis has forced automakers to either halt or cut down their production for either a quarter or annual leading to heavy losses. Volkswagen CEO Herbert Diess recently stated that the automotive industry might have to endure this shortage for the next few months or even years. Chairman of Daimler AG Ola Kallenius and head of BMW AG Oliver Zipse also seconded this gloomy prediction.