Tesla may pay upfront for chips amid global shortage: FT

Dow Jones2021-05-27

MW Tesla may pay upfront for chips amid global shortage: FT

Electric-car maker Tesla $(TSLA)$ has reportedly opened new fronts in the battle to secure chips amid an industry-wide shortage that includes paying in advance for those supplies and even buying its own plant. Tesla is specifically trying to secure chips with companies in Taiwan and South Korea, which make the newer generation models that it needs, but also the U.S., according to a Thursday report in the Financial Times , which cited industry sources. As for buying a plant outright, sources said those plans are in a much earlier stage, given such an endeavor could prove cost prohibitive. A spokesperson for Tesla could not immediately be reached for comment. The FT said a person familiar with chip giant Samsung's [s:kr: 005930] view on direct chip buying by companies said it has production lines for this purpose and would be open to discuss it further.

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