October 24, 2021

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Samsung picks up Tesla's next-generation chip production up the nose at TSMC

Samsung picks up Tesla’s next-generation chip production up the nose at TSMC

After all Sun brands, Samsung and Tesla will unite on a new chip project for the next generation of self-driving cars. Negotiations are underway over chips in Samsung’s 7-nanometer production process, which are the prototypes of chips for Tesla’s HW 4.0.

Tesla’s 4th generation devices will have chips from South Korea

Tesla and Samsung have been designing and testing the chip since the beginning of this year. Recently, Tesla decided to outsource its HW 4.0 self-driving chip to Samsung. It’s practically a done deal,” an industry insider told KoreaTechToday regarding the news.

Project parts from TSMC

It had previously been suggested that the project would go to Samsung’s rival Taiwan Semiconductor Manufacturing Company, but after recent negotiations between Tesla and Samsung, the South Koreans have hijacked the project and will begin work on it in the coming months.

Although the world faces a shortage of semiconductor chips in the manufacturing industry, Tesla is said to be benefiting disproportionately from the project.

New factory in Texas

Samsung has a market share of 17.3 percent against Taiwanese semiconductor manufacturers with more than 50 percent of the chip market, but Samsung is rumored to have plans to invest in a new semiconductor plant in Texas, which could put it first.

Tesla is expected to produce 1.3 million cars next year. The company aims to produce fully hardware self-driving cars that will need only software updates as they are developed. However, the company had to upgrade the hardware package twice.

Elon: Self-driving is four times safer than people

The next generation of hardware from Tesla that will bring full self-driving capability if Elon Musk gets what he wants, will have chips from Samsung.

I am convinced that 3 machines or 1 self-driving computer will be able to drive itself and that the level of safety will be much higher than a human, perhaps 200 or 300 percent better than a human. It is clear that there will be a machine 4 or a self-driving computer 2. It will be 4 times more efficient than people. Roughly speaking.

Elon Musk