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Musk Believes Chip Shortage Issue Could Be Solved By Next Year

Elon Musk believes the chip shortage could be over by next year due to semiconductor plants that are currently being built. We will know in a year from now whether Musk’s prediction was accurate or not.

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This is a pivotal moment for Tesla concerning this chip shortage and it is great news that something is able to be done about it. The chip shortage hasn’t ended yet, but there is now good reason to have some hope that it might end soon. If this chip shortage persists for much longer, it could set some of Tesla’s upcoming releases back many years. Musk sees some light at the end of the tunnel, and so Tesla could avert a worst-case scenario.

Plants are being built

There have not been many details released on these semiconductor plants being built. The fact that these plants are even being built is a great start. However, they need to be finished on schedule. It also isn’t known just yet whether these plants can give Tesla the chips they need for all of the new cars slated to be released.

“There’s a lot of chip fabrication plants that are being built," Musk said at Italian tech week. A chip fabrication plant usually produces designs for other companies and can cost a few billion dollars to construct.

Other factors

Something else to note is that big players involved in nuclear power are expected to step up to help end this chip shortage.

Musk said, “I am surprised by a recent move away of some countries from nuclear energy, which is safe."
One can only hope now that the end of this chip shortage is something that can be reached soon.

Image: Tesla

Daniel Cappo reports Tesla developments at Torque News. He has had a passion for cars ever since age five when his grandparents let him drive their old golf cart around their property in Upstate NY. He has attended numerous auto shows, and even got the chance to drive a Ferrari California on the track. Ever since Tesla opened up a dealership at his local mall, he's been an avid follower of their cars and technology. Dan has a B.S. in Public Communication from U Vermont. Follow Daniel on Twitter and LinkedIn for daily Tesla News.

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