Tesla has told suppliers to start building components and parts outside of both China and Taiwan by as early as next year due to rising geopolitical uncertainties, Nikkei Asia has learned.

Suppliers making components such as printed circuit boards, displays and electronics control unit systems for use in Tesla models sold outside of China have received the request from the American EV maker, according to six supply chain executives with direct knowledge of the matter.

"We got the request from Tesla that they hope to have components that are both OOC and OOT, meaning out of China and out of Taiwan," a source from a Taiwan-based supplier to Tesla and others told Nikkei Asia. "They hope such a proposal can materialize from next year's new projects."

Tesla also discusses the matter with other Asian suppliers from Japan, South Korea and elsewhere, sources said. An executive from a Japanese electronics maker told Nikkei Asia that his company was among those Tesla had talked to.

An executive from another component supplier said his company was ramping up capacity in Thailand because of the request. "To many clients, including Tesla, the so-called China+1 strategy includes avoiding Taiwan as well," the executive said.

Sources say other American car makers such as General Motors and Ford have asked suppliers to study moving electronics production beyond China and Taiwan but unlike Tesla have not made a formal request to do so.

"We serve several American automobile makers, and Tesla is the most aggressive in terms of trying to avoid the risks surrounding China and Taiwan," an electronics supplier executive said. "It's really hard and costly to do OOC and OOT, as that is where the mature supply chain is."

Tesla did not respond to Nikkei's request for comment. Ford and GM declined to comment on specifics, though Ford said it is continually "working to build a resilient high-quality and cost-competitive supply chain."

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Editor：King&Lulu

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