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Elon Musk Calls This A Short-Term ‘Disaster’, What’s the Problem?

Jakarta

CEO Tesla, Elon Musk believes the semiconductor crisis will end next year. One of the world’s richest men says chip shortages are a short-term problem.

“There are a lot of chip fabrication plants under construction and I think we’re going to have a good capacity next year,” Musk said detik.com from CNBC, Saturday (25/9/2021).

Musk did not specify which chip factory he was referring to. However, chip companies, such as Intel and TSMC have announced plans to build new factories in the US. Glenn O’Donnell, vice president director of research at advisory firm Forrester estimates the shortage of semiconductor chips could last into 2023.

“As demand will remain high and supply will remain limited, we expect this shortfall to last through 2022 and into 2023,” he wrote in a blog post in April.

The global shortage of chips has had a major impact on various industries, and the auto sector has been hit hard. Big names in the industry like Ford, Volkswagen, and Daimler have all been forced to suspend production at various points and cut their manufacturing targets as a result of a shortage of chips.

During the first quarter, Musk said that Tesla had some supply chain issues, before referring to the chip shortage.

“And I think we’re going to continue to see that a bit in Q2 and Q3, had some of the most difficult supply chain challenges we’ve ever had in Tesla’s survival and the same difficulties with the supply chain, with parts across the spare parts range. Obviously, people have heard about chip shortages. This is a big problem,” he said.

Consulting firm AlixPartners estimated this week that the chip shortage would cost the auto industry US$210 billion in losses for the year alone.

Automakers use semiconductors in everything from power steering and brake sensors, to entertainment systems and parking cameras. The smarter the car, the more chips they use.

(toy/fdl)

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