Tesla taps Samsung to make its fifth-gen hardware 5.0 chips

Samsung will manufacture Tesla Inc.’s next-generation Full Self-Driving (FSD) chips to be used in the Level-5 autonomous vehicles. Likely to be made on Samsung’s 4nm process, the chipset will go into Tesla’s Hardware 5 (HW 5.0) computers, which it plans to mass-produce three to four years from now.

In 2022, the US-based EV maker chose TSMC as its sole partner for HW 5.0 auto chip production. Now, Tesla plans to work with both TSMC and Samsung or could switch from TSMC to Samsung altogether, for mass production of the fifth-generation auto chips.

“Splitting next-generation chip production between the two is more likely though,” said one of the officials.

How Tesla Switched To Samsung:

During their meeting at a Samsung research center in Silicon Valley, San Jose, the Samsung chairman, widely known in international business circles as Jay Y. Lee, offered Musk terms including favorable contract prices that he could not refuse, reports KEDGlobal.