After Meeting With Brazilian Minister, Tesla Owner Elon Musk Considers Meeting Semiconductor Demand and Brazil May Receive Factory

The Semiconductor Crisis Has Been So Great That Even Tesla CEO Elon Musk Feels The Need To Build A Factory Just For The Component So That His Activities Are Not Affected. One Of The Possible Countries To Receive The Venture Is Brazil

The chip and semiconductor crisis has been causing headaches for various businesspeople around the world, to the extent that even the multibillionaire Elon Musk, CEO of Tesla, has not escaped this dilemma. Made from germanium or silicon, the use of semiconductors in factories is essential because they have sufficient electrical conductivity between insulators and conductors, which is fundamental for the functioning of computers, automobiles, phones, and cell phones, for example. With the pandemic, there was a mismatch between production and the ever-increasing demand for these inputs, which affected companies like Tesla and economies everywhere.

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Brazil May Receive Elon Musk’s Semiconductor Factory

In a meeting with Fábio Faria, Minister of Communications, last Monday (15), Elon Musk stated that to escape the global microchip crisis, there might be no other choice but to invest in a semiconductor factory.

Brazil would be one of the most likely countries to receive the investment from Tesla’s CEO. The topic arose after Faria proposed building a Tesla factory in the country and mentioned that he also plans to turn Brazil into an important country in semiconductor production again, something that existed until the 1980s.

The meeting in question, featured in the highlight photo, was actually for negotiations regarding the installation of Starlink satellites, which also has Elon Musk as its CEO, to monitor deforestation in the Amazon and connect schools located in remote areas with state-of-the-art internet.

Tesla Electric Car Production Halted Due To Semiconductor Shortage

According to Faria, Tesla’s CEO was invited to build a semiconductor factory in Brazil, but Elon Musk stated that it was not part of the core business to invest in a semiconductor factory, as he only invests in non-existent technologies, but acknowledged the need for the product for all his units’ activities.

As is the case with Tesla’s electric cars, which require 10,000 parts, for example. At the beginning of the year, the chip shortage caused production of the Tesla Model 3 to be halted at Elon Musk’s factory in Fremont, California.

In response, Elon Musk told the Minister that the construction of a semiconductor factory is in his plans. Faria noted that Musk plans to wait a year to analyze how this crisis will develop globally and might consider opening a factory after that.

Elon Musk’s Factory Could Be Located In The Northeast Of The Country

In the Minister’s view, one possibility would be to build the semiconductor factory in the Northeast. The northeastern region was referred to as the “Brazilian California” by Faria, who claims that the Northeast has everything it needs to become a hub of innovation and can be an important player in selling to all of Latin America.

According to Faria’s words, São Paulo is like New York and the Northeast is like California. Another mission of the Minister is to convince Samsung to produce semiconductors in the country.

NOTE: The base content of this article was written inspired by the content originally published on the portal VEJA By Felipe Mendes, Carlos Valim.