Tesla CEO Elon Musk is optimistic the chip shortage situation will improve

Elon Musk, the CEO of Tesla Inc. (NASDAQ: TSLA), stated on Friday that the current semiconductor situation would be resolved by next year. The tech entrepreneur believes the chip scarcity is a “short-term” rather than a “long-term” problem.

Several chip fabrication plants are being built

Elon Musk said:

 However, Musk didn't specify the kind of chip plants whew was talking to. Intel Corp and TSMC, two of the world's largest chipmakers, have announced plans to commence new operations in the United States, but they won't be operational for several years.

According to Glenn O'Donnell, VP and research director at advisory company Forrester, the scarcity might endure until 2023. O’Donnell  wrote in a blog post in April:

The current global chip shortage has wreaked havoc on several businesses, but the automobile industry has been mostly hard struck. Due to a shortage of semiconductors, significant manufacturers like Ford, Daimler, and Volkswagen have been forced to halt production at various facilities and reduce their manufacturing targets.

During Tesla Q1 earnings, Musk said they were experiencing supply chain disruptions before referencing the chip shortage. Musk said:

Chip shortage to cost automotive sector $210 billion

Consulting company AlixPartners forecasted that the semiconductor shortage would cost the automobile sector revenue close to $210 billion this year.

AlixPartners global co-leader of industrial practice and automobile sector Mark Wakefield said:

Everything from power steering and brake sensors to entertainment systems and parking cameras use semiconductors. The more sophisticated cars are, the more chips they employ.