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Tesla May Pay for Semiconductors in Advance

Tesla is poised to take the unusual step of paying for semiconductors in advance in an effort to stay ahead of the shortage....
Tesla May Pay for Semiconductors in Advance
Written by Matt Milano
  • Tesla is poised to take the unusual step of paying for semiconductors in advance in an effort to stay ahead of the shortage.

    Semiconductors are in short supply as a result of the pandemic. Initially, production was hurt due to lockdowns and quarantines. The issue was later exacerbated by increased demand for computers, tablets and consoles, as individuals worked from home and increasingly turned to gaming for entertainment.

    The end result has been a major semiconductor shortage, one that has impacted tech companies and automakers alike. Multiple automakers have had to suspend production, or ship vehicles without their full compliment of computer chips.

    Tesla may be taking a novel approach, buying chips in advance to ensure it has the supply it needs, according to Financial Times, via Business Insider.

    According to FT’s sources, Tesla is also looking at the possibility of buying its own semiconductor plant. The move, while ensuring its independence, would be extremely expensive and difficult to get off the ground.

    Whatever route Tesla chooses, the company’s deliberations illustrate the desperate situation companies are finding themselves in.

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