Tesla CEO Elon Musk said Friday that the ongoing semiconductor crisis will be over by next year.

Musk said that he views the chip shortage as a temporary problem and not a longer-term concern. 

Musk stated, “There are a lot of chips fabrication plants being built” and said that the company will be able to produce enough chip capacity in time for next year. The Italian event was broadcast online by Musk.

Musk did not say which chips plants he meant.

Chip heavyweights Intel and TSMC have announced plans to build new plants in the U.S. but they won’t come online for several years yet.

Glenn O’Donnell, a vice president research director at advisory firm Forrester, believes the shortage could last until 2023.

“Because demand will remain high and supply will remain constrained, we expect this shortage to last through 2022 and into 2023,” he wrote in a blogpost in April.

The global chip shortage has had a major impact on a wide range of industries, but the automotive sector has been particularly badly hit. Big names in the industry such as Ford, Volkswagen and Daimler have all been forced to suspend production at various points and cut their manufacturing targets as a result of a lack of chips.

During the company’s first-quarter earnings, Musk said that Tesla had some supply chain issues, before going on to reference the chip shortage. 

“This quarter, and I think we’ll continue to see that a little bit in Q2 and Q3, had some of the most difficult supply chain challenges that we’ve ever experienced in the life of Tesla and same difficulties with supply chain, with parts — over the whole range of parts. The chip shortage is something that many people are aware of. It is an enormous problem.

Consulting firm AlixPartners predicted this week that the chip shortage will cost the automotive industry $210 billion in revenue this year alone. 

In a statement, Mark Wakefield from AlixPartners said that while everyone had hoped the chip crisis would be over by now, unfortunate events like the COVID-19 lockdowns and ongoing problems in other countries have only exacerbated the situation.

In everything, carmakers employ semiconductors from power steering to brake sensors to parking cameras and entertainment systems. Chips are used more often as cars become smarter.

Tesla introduced custom AI chips to its cars in 2019. These AI chips allow the on-board software to make intelligent decisions based on what is happening.

Musk said in July that production of Tesla’s Powerwall product, a backup battery for the home, was “lagging” as a result of the chip shortage.