Samsung is Tesla’s favorite to supply the next-generation chip (HW5) for autonomous driving, according to a report. The head of the company met with Elon Musk in late spring to discuss expanding cooperation in various areas.
Demand for high-performance chips is on the rise
The automotive semiconductor market is rapidly becoming a source of demand for high-performance chips. This is happening as automakers work to deliver autonomous driving features and infotainment systems. Tesla is one of the largest companies that equips all of its vehicles with high-performance chips. Demand for them is expected to skyrocket as electric and autonomous vehicles proliferate. This is a multi-billion dollar business, so there is high competition among chip manufacturers. At the moment, the leaders in the field are Samsung Electronics and Taiwan Semiconductor Manufacturing Company (TSMC).
Samsung may be Tesla’s favorite for its next-gen chip
The automotive semiconductor market is experiencing a miniaturization trend. Samsung Electronics is actively improving its technology, so for Tesla it is a very interesting supplier. According to Business Korea, Samsung is currently the favorite to receive an order from the Texas-based manufacturer for a fifth-generation autonomous driving chip (HW5). It will use advanced 4nm processes. The company is already supplying Tesla with 14nm chips for autonomous driving, so expanding the collaboration would not be a huge surprise. According to the information, the company is rapidly developing its technology and plans to move to a 2nm process for the production of automotive chips by 2027.
Elon Musk met with Samsung Group’s executive chairman to discuss collaboration on chip development
In mid-May 2023, Elon Musk met with Samsung Group’s executive chairman Lee Jae-yong at Samsung Electronics Co.’s semiconductor research center in Silicon Valley, California. At the time, the company said the meeting was to discuss a technology alliance between the two companies in various areas, including automotive semiconductors, artificial intelligence, and displays. According to a Samsung report, the company’s executives have discussed ways to strengthen their technology partnership, including joint development of chips for fully autonomous vehicles.