Source: Bloomberg
Summary
Tesla Inc. has a plan to reduce its reliance on Taiwan-based chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) in case of a potential Chinese invasion, according to a report. The electric vehicle manufacturer has been working on a backup plan to ensure a stable supply of semiconductors, said people familiar with the matter. Tesla’s plan involves partnering with other chipmakers, including those in the US, to diversify its supply chain. The move is seen as a precautionary measure, as tensions between the US and China continue to rise.
Our Reading
The announcement sounds ambitious.
Tesla’s “plan” is really just a public acknowledgement that they’re thinking about what everyone’s thinking about: what if China invades Taiwan?
Tesla wants to diversify its supply chain, because of course it does.
This is not exactly a bold move, but rather a “we’re on it” nod to investors.
The fact that this is news says more about our current geopolitical climate than it does about Tesla’s innovation.
And let’s be real, this is just a remix of every other company’s “we’re exploring alternatives” statement.
Author: Evan Null
