Tesla is set to take the unusual step of paying in advance for chips to secure its supply of the crucial materials and is also exploring buying a plant as part of efforts to overcome the global shortage, according to people familiar with the matter.
The US electric-car maker is discussing the proposals to secure chip supply with industry operators in Taiwan, South Korea and the US, said the people, who work at semiconductor industry suppliers, chipmakers and consultancies.
They said Tesla’s interest in an outright purchase of a plant was at a much more preliminary stage. Given the prohibitive costs that would be involved, they said such an acquisition would be difficult. Tesla needs the newest generation mass-production chips, which are made mainly in Taiwan and South Korea.