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Tesla has added a critical layer of redundancy to its much-hyped Hardware 5.0 chips that are expected to finally usher in the age of true autonomous driving.
NEWS: Samsung will reportedly make Tesla's next-gen FSD chips.
The chips, to be manufactured on Samsung’s 4-nanometer node, will go into Tesla’s Hardware 5 computers, and be mass-produced 3-4 years from now, according to The Korea Economic Daily. https://t.co/3ynQfsx1tT
— Sawyer Merritt (@SawyerMerritt) July 18, 2023
As per the reporting by Korea Economic Daily, Tesla has tapped Samsung to manufacture its fifth-gen Hardware 5.0 chips on the 4-nanometer node, with mass production expected in “three to four years from now.”
Previously, Tesla had chosen TSMC as its sole partner for the Hardware 5.0 chips. Today’s development adds a critical layer of redundancy to Tesla’s plans, allowing the EV giant to split the load or rely solely on either of the two chipmakers.
This development is reportedly a direct result of a meeting between Elon Musk and Samsung’s Lee Jay-yong back in May, wherein the chipmaker had offered quite favorable terms to Tesla.
Bear in mind that Samsung is already supplying FSD chips for Tesla’s Model 3, Y, S, and X. Today’s development comes as Samsung has markedly improved the yields for its 4-nm and 3-nm node processes, with improvements of as much as 75 percent and 60 percent, respectively.
Just like Intel, Samsung is aggressively expanding its foundry capacity. The company is increasing its manufacturing footprint at its main Pyeongtack plant in Korea this year, with another plant in Texas expected to come online next year. By 2027, Samsung hopes to triple its 2022 global chipmaking capacity.
Tesla is planning to double the size of its factory near Berlin to produce up to one million electric cars a year, an expansion that could make the plant the largest auto manufacturing facility in Germany - WSJ https://t.co/QFwrH1KCmV
— Sawyer Merritt (@SawyerMerritt) July 17, 2023
Meanwhile, Tesla has finally started to produce its much-anticipated Cybertruck. Mass production of the electric truck, however, is only expected in 2024. It is hardly a surprise, therefore, that the company is aggressively increasing its production capacity, with Giga Berlin now expected to have the capability to produce 1 million electric cars per year after the completion of just-announced upgrades.
As we noted in a previous post, Tesla produced 479,700 units during the second quarter of 2023. Moreover, in what constitutes another record, the company managed to deliver 466,140 units during the pertinent period, comfortably beating consensus expectations of 445,000 units (Factset). However, the company’s inventory also increased for the fifth consecutive quarter, with around 90,000 units in the company’s active inventory.
As per the tabulation by Troy Treslike, Tesla averaged a run rate of just 3,635 units per week at GigaBerlin during Q2 2023, significantly below the factory’s total capacity of around 8,000 units per week.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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