Samsung and Tesla are in talks to collaborate on next-generation self-driving chip development.

Samsung Electronics (005930. KS) and Tesla (TSLA.O) is in talks to produce Tesla’s next-generation self-driving circuits using Samsung’s 7-nanometer chip manufacturing technology.

Tesla and Samsung have discussed chip design and exchanged chip prototypes for Tesla’s future Hardware 4 self-driving computer several times since the beginning of this year, according to the Korea Economic Daily, citing persons with firsthand knowledge of the topic. Samsung did not respond to requests for comment. There was no quick comment from Tesla.

According to the article, if Samsung wins the contract, the chip will be manufactured using its 7-nanometer manufacturing method. Tesla’s current Hardware 3 computers already use Samsung chips.

Tesla Chief Executive Elon Musk said in the company’s AI Day event in August that Tesla would introduce new hardware for its self-driving computer for its Cybertruck electric pick-up truck in “about a year or so.”

According to analysis firm TrendForce, Samsung is second in the chip contract manufacturing business after TSMC (2330. TW), which had a 52.9 percent market share compared to Samsung’s 17.3 percent at the end of June.

Copyrights © 2024. All Right Reserved. Engineers Outlook.