Tesla and Swiss chip maker Annex have reportedly formed a joint venture in Jinan, east China's Shandong province. According to the report, automotive chips and solutions will be produced there.
Tesla is a tech company that needs a huge amount of chips to incorporate technologies into its products. With the growth in the number of vehicles it produces, Tesla's need for chips has grown significantly, so the company is looking for ways to expand its access to more of them. According to IJiWei, Tesla has entered into a joint venture with the Swiss company Annex to manufacture automotive chips in China.
The joint venture has an authorized capital of $150 million. With Tesla holding 5% equity in the company, the other 95% is held by Annex (55%) and Jinan Zurich Annex Equity Investment Fund Partnership (40%). Keep in mind that the Jinan Zurich Foundation acquired Annex back in June 2022 for $5 billion.
At the moment, Tesla chip suppliers include such large companies as Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung. According to recent rumors, Tesla has placed such a large order for chips with TSMC that it will become one of the seven largest customers of the company in 2023.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
