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Tesla-Samsung In Talks for autopilot chip manufacturing

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Samsung is said to be in conversation with Tesla to produce self-driving chips for the next-generation electric cars for the EV maker. The chip is anticipated to power the upcoming Tesla Cybertruck which is expected to launch in 2022.

According to a report from Korean Economic Daily, Samsung and Tesla have been discussing the chip design and have already exchanged prototypes. Both the companies have been working on the Hardware 4 (HW 4.0) chip since the start of 2021. Now, Tesla is believed to outsource the mass production of the HW 4.0 self-driving chip to Samsung.

The experts on the matter suggest that Samsung will be using its 7-nanometer node process for Tesla’s HW 4 chip. It’s mass production of Chip is expected to take place at the Hwasung plant-based in Korea. The chipmaker will start the fabrication of Tesla’s next-gen chip in the fourth quarter of this year.

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The previous generation HW 3.0 chip, which has been in the use in Tesla’s electric vehicles, was also manufactured by Samsung. Since Tesla is now aiming to come up with fully self-driving (FSD) electric cars and to achieve stable function, Samsung will be its chip partnered. Even though a 7nm process chip is less advanced than a 5nm chip, Samsung has picked the former process for higher production yields.

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Previously, Tesla was expected to partner with Taiwan Semiconductor Manufacturing Company (TSMC) for its HW 4.0 autopilot chip production. But after considering the factors like manufacturing costs, long-term partnerships, and advanced technology, the carmaker decided to go with Samsung.

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