Thursday, October 21, 2021

Elon Musk believes the chip crisis to be over by the end of 2022

Tesla’s CEO Elon Musk is best known for his insights into the industry and recently the real-world Tony Stark has stated that he is confident that the ongoing chip shortage will be solved by 2022. this is an interesting claim as many analysts and even chip manufacturers having reservations about the crisis subsiding next year.

Due to the pandemic, we witnessed a sudden increase in the demand for many electronics and computers which the supply chain couldn’t handle. This became evident when the semiconductor industry public announced of they were unable to meet the demands of their customers.

However, the sector which has been affected most by the microchip shortage is the automotive industry, which has increasingly become a big consumer of microchips. According to a recent report, the chip shortage is affecting electric vehicle production severely as several automakers had to halt production until chip supply could catch up.

According to Intel’s CEO, Pat Gelsinger, it could take a “couple of years” for the industry to catch up to the surging demand. And just earlier this year, Musk announced that the chip crisis has affected the company however, he believes that it’s not a “long-term issue”.

I related to Tesla’s performance this quarter, Musk stated that the company’s current biggest challenge is the supply chain issue, especially about the “microcontroller chips”. However, Musk seemed to be quite optimistic about the future of the crisis and he even at a tech conference in Italy, commented on the timeline and claimed that it should be fixed “by next year” with new factories coming up.

“There’s a lot of chip fabrication plants that are being built and I think we will have a good capacity by next year.”

The CEO’s outlook is more optimistic than several other industry leaders who see the issue lasting up to 2023.

source

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