Tesla needs the newest generation mass-production chips, which are made mainly in Taiwan and South Korea. Some contract chipmakers have begun allowing large customers to pay deposits upfront to guarantee certain orders at a fixed price. “Given the current capacity shortage, Samsung may give dedicated capacity to companies like Tesla, which uses chips with a longer life cycle,” said CW Chung, an analyst at Nomura. Motor groups “will have more direct dealings with the contract chipmakers”, said a person who is advising a European carmaker on rejigging its chip supply chain. TSMC has long resisted requests to set aside dedicated capacity for any customer.

Source: The Irish Times May 27, 2021 16:19 UTC