Tesla is set to pay in advance for chips to avoid a shortage.
It’s an unusual step for the car manufacturer, but Tesla wants to secure the supply to overcome the global chip shortage.
According to sources reported by the Financial Times, Tesla is also exploring buying a plant in an effort to secure further supply.
The US electric-car maker is discussing the proposals to secure chip supply., with industry operators in Taiwan, South Korea and the US.
Tesla needs the newest generation mass-production chips. These are made mainly in Taiwan and South Korea.
Financial Times notes their source are people who work at semiconductor industry suppliers, chipmakers and consultancies.
“Given the prohibitive costs that would be involved, they said such an acquisition would be difficult.”
When will the global chip shortage end?
It’s quite baffling, where did it all begin? What impact is it having on us?
All tech objects in your home have these chips. With the tech sector heavily impacted, the automotive and the health industry as well.
Click the video for what you need to know
Tesla’s new data storage facility in China
Elon Musk’s Tesla has revealed a new facility in China that will locally store data from Tesla vehicles. The company says that data generated by all cars it sells in the country would be stored locally.
The company led by billionaire Elon Musk is manufacturing Model 3 sedans and Model Y sport-utility vehicles in China.
Tesla added it would expand its data centre network in China. The company’s shares were last down 0.7%.
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