Samsung is reportedly in talks with Tesla to build the next generation of self-driving chips based on Samsung’s 7-nanometer chip production process.
According to the Korean Economic Daily, the two companies have discussed chip design several times and even exchanged chip prototypes for Tesla’s upcoming Hardware 4 self-driving system.
The South Korean tech giant plans to mass-produce the Tesla HW4.0 chip using 7-nanometer processing technology at its main Hwasung plant in Korea as soon as the fourth quarter of this year.
Earlier, a report claimed that Tesla plans to use a 7-nanometer process by Taiwanese semiconductor company TSMC for its next-generation self-driving chip. (Also read: Google will launch Pixel exclusive ‘Locked Folders’ option for all Android phones )
Samsung is currently the world’s second largest contract chip maker with 17.3 percent market share and TSMC leads the market with 52.9 percent market share.
Meanwhile, Tesla is expected to reach 1.3 million deliveries in 2022.
Wedbush Securities analyst Dan Ives said he now expects Tesla to deliver 900,000 vehicles this year and increase to 1.3 million vehicles in 2022.
Ives believes Tesla will benefit disproportionately from this transition to electric vehicles in the industry.
The automaker is clearly getting ahead of the current supply chain issues plaguing the auto industry. Before the start of 2021, some industry watchers thought this might be the year Tesla broke one million deliveries. (Also read: Apple iOS Update! iOS 12.5.5 Released for Older iPhones, iPads)
However, like the rest of the auto industry, Tesla has faced supply chain problems.