Tesla and TSMC settle the deal for 4nm chips
Tesla and TSMC have settled the deal for the 4nm chips. A few months back, it was stated that Tesla [Elon Musk’s company] is probably looking forward to the supply of 4nm chips to TSMC. Reportedly, Tesla preferred TSMC over Samsung. As of now, some solid evidence suggests that TSMC has cracked the deal. Thus, leaving Samsung behind. These chips are going to be utilized for the self-driving system of Tesla cars in near future.
In accordance with a report by DigiTimes Asis, Tesla and TSMC appear to have closed the deal. Through this deal, Tesla has become one of the largest clients of TSMC. It is regarded as the seventh-largest customer of TSMC. The Arizona facility of TSMC will be responsible for manufacturing 4nm chips. However, in 2024, Volume production will start. In 2021, the building of the Arizona facility was completed by TSMC. Around 250 members were appointed in the facility for the work operations.
Where Tesla is looking forward to TSMC via this deal. Likewise, is Apple inclined towards TSMC? It is reported that Apple company might place their order of 3nm chips with Arizona facility. In 2024. TSMC will start the process of chip manufacturing. It will be around a similar time when it will be working for Tesla’s order. The chairman of Taiwan Semiconductor TSMC, Mark Liu mentioned that the Arizona facility of TSMC is expected to build a return of around $10 billion once it gets fully functional.
According to various analysts from the industry, this development could be a big hit for the tech giant Samsung. Furthermore, such deals could also influence the net gains of Samsung over the next few years. Since some previous reports suggested that in Q3 2022 Samsung lost its position to TSMC in the international foundry market. The divergence between the two semiconductor giants has widened by almost 40.6% points in Q3 2022. This difference is quite large given the last year’s stats i.e., 33.8% points in Q4 2021. Samsung is for sure in hot waters concerning the given scenario of its foundry.
Though, on the other hand, Samsung was handed over the order of camera suppliers for Tesla. These cameras are expected to be utilized in the Vision self-driving system. In addition to this, some other speculations hint that Samsung’s cameras might be used by Tesla in its forthcoming Cybertruck as well as other electric vehicles. But nothing can be said for sure.
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