Samsung Loses Tesla’s Huge 4nm Chip Order To TSMC

This latest report confirms that the 4nm chip deal between Elon Musk’s Tesla and Taiwanese Silicon giant TSMC was successful. It was reported that Tesla had placed a massive 4nm chip order at TSMC and chose TSMC over Samsung. Future Tesla self-driving cars will use the 4nm chips.

DigiTimes Asia reports that the deal between Tesla Motors Corporation and TSMC has been completed. This makes Tesla the seventh largest client of TSMC.

According to reports, TSMC’s Arizona plant will produce 4nm chips. Volume production will start in 2024. TSMC’s Arizona facility was completed last year and employed approximately 250 Americans.

Tim Cook, Apple CEO and Tesla’s CEO said his company would purchase 3nm chips from TSMC’s Arizona plant. TSMC will start chip production in 2024. This is similar to the time when it will produce 4nm chips at Tesla.

Taiwan Semiconductor’s Chairman Mark Liu stated earlier this month that the new Arizona facility would generate $10 billion in revenues once it is operational.

According to industry analysts, this deal would be a major blow to South Korean semiconductor giant Samsung. It is also possible that the deal will harm Samsung’s profits over the next few years.

It was reported that Samsung recently trails TSMC in global foundry market share in Q3 2022. The gap between TSMC (and Samsung) has widened to 40.6 percentage points in Q3 2022, compared to 33.8 percentage points in Q4 2021.

Samsung’s foundry situation is also in trouble. On the other hand, Tesla selected Samsung as its camera supplier for Vision’s self-driving technology. There are rumors that Tesla may use Samsung cameras for its upcoming Cybertruck and other EVs. However, this has yet to be confirmed.

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