Samsung has been selected to produce the Tesla Hardware 5.0 (HW 5.0) chips that will be used in the American automaker’s upcoming Tier 5 fully autonomous electric vehicles. The partnership between the two companies was strengthened after a meeting between Samsung leader Lee Jae-young and Tesla CEO Elon Musk resulted in a chip manufacturing agreement.

The HW 5.0 chips, which will be produced on Samsung’s 4nm node, are expected to enter mass production in the next three to four years. Tesla, which previously selected Taiwan Semiconductor Manufacturing Co. (TSMC) as its sole manufacturing partner for the HW 5.0 chip now plans to work with both companies, TSMC and Samsung, to mass-produce fifth-generation chips.

During the meeting, Lee allegedly offered Musk lucrative contract terms to manufacture the HW 5.0 chips. Samsung has already provided chips for Tesla Models 3, 5, X and Y, and the meeting served to further strengthen the partnership between the two companies.

Chips to help Tesla achieve Level 5 vehicle automation

Samsung has made significant progress in its chip manufacturing capacity, improving its performance metrics and moving closer to that of TSMC. The South Korean company, the world’s largest manufacturer of memory chips, has been looking to increase its share of the contract chip manufacturing market currently dominated by TSMC.

Tesla aims to fully automate its Level 5 electric vehicles with HW 5.0 chips in the next three to four years. Level 5 is the highest level of automation where the vehicle can automatically perform all driving tasks in all conditions, without the need for human attention or interaction.

Samsung is betting big in the automotive market to win contracts to supply chips to electric car makers, including Tesla. The South Korean company plans to significantly increase production capacity at its main plant in Pyeongtak, Korea, and begin operations at its plant in Taylor, Texas by the end of 2024.

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Via: Sam Mobile

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