Elon Musk thinks global chip shortage will end next year

The global semiconductor chip shortage that has affected industries around the world, hitting the auto industry particularly hard, is a short-term problem that should be resolved by next year.

That’s according to Tesla CEO Elon Musk, who said on Friday said the number of semiconductor plants either under construction or planned to be built will be able to provide enough supply to end the crisis.

“There’s a lot of chip fabrication plants that are being built. I think we will have good capacity for providing chips by next year,” Musk said at Italian Tech Week. (via Reuters)

For their part, Tesla has been able to avoid some of the pains by being able to pivot to new chip suppliers. Musk noted in the company’s Q2 2021 earnings call that the shift involved more than just securing a new supply. They also had to re-write their software to be compatible with the new chips, something that they were able to do in a matter of weeks.

Not all automakers are that nimble. Ford, Daimler, BMW, Nio, and many others have had to shut down production lines for weeks at a time because of the lack of semiconductors. Others have built cars without the chips with plans to install them when they are available at a later date.

The shortage has also impacted new vehicle debuts. Nissan announced earlier this year the new Ariya would be delayed because of a lack of chips.

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