Tesla chooses TSMC over Samsung, places huge 4nm chip order

One month ago, back in November, news broke that Tesla had placed a huge order for silicon at TSMC, choosing the Taiwanese chip manufacturer over Samsung. The alleged order was for 4nm chips planned to be used in the self-driving systems of Tesla cars in the future.

DigiTimes Asia has now given us solid proof that the deal went through, making Tesla one of TSMC's seventh-largest clients. According to the information, Tesla has placed orders for 4nm chips at TSMC's new US facility in Arizona, and volume production is expected to begin in 2024.

One year ago, TSMC initiated its plan to build a factory on US soil, following Trump’s plans to get key technology production back to the US. The factory was completed later last year, and more than 250 Americans were hired to work in the facility.

Tim Cook said earlier this month that Apple plans to buy 3nm chips made in the TSMC Arizona facility. The chips will be made starting in 2024, which is also the timeline for the first 4nm chips for Tesla vehicles, according to the latest information.

Industry experts and analysts think that these deals are a major blow to Samsung and will to some extent impact the company’s profits from silicon production in the next couple of years. Earlier this year, Tesla chose Samsung as a camera supplier for the Vision self-driving system, so it’s not all bad news for the popular smartphone maker.