TAIPEI (Taiwan News) — Tesla has informed suppliers to begin manufacturing components and parts outside of Taiwan and China starting as early as next year amid rising geopolitical tensions, Nikkei Asia reported on Thursday (May 23).
Tesla suppliers of printed circuit boards, displays, and electronics control unit systems for electric vehicles (EVs) sold outside of China have received the request from Elon Musk’s company, six supply chain executives told Nikkei Asia.
The request said the move is meant to build other supply sources for non-China markets to avoid supply chain disruptions due to increased geopolitical risks in the region before the upcoming U.S. presidential election, per Nikkei Asia.
One Taiwanese supplier told Nikkei Asia that Tesla was hoping for supplies manufacturing outside of Taiwan and China to “materialize from next year’s new projects.” The American EV maker also discussed the matter with other Asian suppliers from Japan, South Korea, and elsewhere, sources said.
Sources told the outlet that U.S. carmakers like GM and Ford have asked suppliers to look into moving electronics production out of Taiwan and China, but have not made any formal requests.
One electronics supplier said it was difficult and costly to manufacture outside of Taiwan and China as that is where the mature supply chains are.