Tesla set to use Samsung-built chips in next-gen hardware

World-leading chipmaker Samsung is in the box seat to win a contract with Tesla to produce chips for the manufacturer's next generation of vehicles.

According to reports from The Korea Economic Daily, sources inside the industry have said the technology company will beat Taiwan Semiconductor Manufacturing Co. (TSMC) to make Tesla's Hardware 4 (HW 4.0) chips.

Essential to the operation of Tesla's autonomous driving systems, the current HW 3.0 chips used in the Full Self-Driving (FSD) Computer are also produced by Samsung, meaning the company has experience meeting Tesla's demands.

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“Tesla and Samsung’s foundry division have been working on the design and samples of the chip from the start of this year. Recently, Tesla decided to outsource the HW 4.0 self-driving chip to Samsung. It’s virtually a done deal,” an insider source told KED.

With Samsung planning to make the chips at its plant in Hwasung, the company will adopt a seven-nanometer processing technology –yielding a higher production volume and stable functioning of the chips in FSD vehicles.

Earlier this month, Tesla announced it is considering a cut-price, fully-autonomous vehicle, which it aims to introduce by 2023, most likely to be used as a fleet vehicle for ride-sharing services.