Tesla may buy Taiwan's Macronix 6-inch fab
May.31,2021

Tesla Inc. may buy the Taiwanese electronics company Macronix's 6-inch fab to ease chip shortage, according to Taiwan media reports.

On May 27, the Financial Times reported that people familiar with the matter revealed that Tesla will pay in advance for chips to secure the supply of crucial materials, and also wants to buy a factory to ease the global chip shortage.

Industry sources said Tesla is discussing proposals to secure chip supplies with suppliers in China, Taiwan, South Korea, and the United States. They said Tesla's interest in directly buying a factory is still in its infancy. Regarding the high cost, the acquisition is still relatively difficult. Tesla needs the latest generation of chips, which are mainly produced in Taiwan and South Korea.

According to a report by Taiwan's Central News Agency on May 28, Macronix intends to sell its 6-inch fab, so the market speculated that Tesla may buy it.

Macronix does not comment on market rumors, stressing that the 6-inch fab will be sold in the second quarter according to plan, and the disposal benefits are expected to be recorded in the second quarter or the third quarter.

As for rumors that Tesla eyes Macronix 6-inch fab, industry sources said Macronix proposed quite a few options options for selling, including taking over all employees of the fab.

However, there is a considerable difference between operating a wafer fab and Tesla's expertise. If Tesla buys the fab, the car company may increase the operational pressure. For the potential deal, the actual situation is subject to further observation.

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