Musk says new semiconductor plants will end global car chip shortage in 2022

27 September 2021 - 11:07 By Reuters
Tesla CEO Elon Musk says new semiconductor plants should end the global car chip shortage in 2022.
Tesla CEO Elon Musk says new semiconductor plants should end the global car chip shortage in 2022.
Image: Patrick Pleul - Pool/Getty Images

Tesla Inc CEO Elon Musk said on Friday that thanks to new semiconductor plants that are planned or under construction, the global chip shortage that has pummelled the car industry this year should be short term in nature.

Asked how long he thought the global chip shortage would affect vehicle production, he said: "Short term I think"

A lot of chip fabrication plants are being built, Musk said at Italian Tech Week during a joint session with Stellantis and Ferrari chairman John Elkann.

"I think we will have good capacity for providing chips by next year," he added.

The two automotive industry leaders agreed on potential support coming from nuclear power to cover increasing global energy needs.

"I am surprised by a recent move away of some countries form nuclear energy, which is safe," Musk said.

In their dialogue they avoided referring to competition issues between top electric mobility leaders such as Tesla and legacy automakers investing heavily to expand their offer of electrified vehicles.

Musk thanked Elkann for support Tesla received between 2017 and 2019 from Comau, the robot unit of Fiat Chrysler, now part of Stellantis, during what he called "one of the most painful periods" for his company linked to the launch of production on Model 3.

"John helped me a lot in that period," Musk said, adding Tesla had come close to bankruptcy "half a dozen times".

Stellantis CEO Carlos Tavares has said the group, formed through the merger between Fiat Chrysler and France's PSA, expected to achieve its European carbon dioxide emission targets this year without credits bought from Tesla.


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