Tesla chooses TSMC over Samsung with huge 4nm chip order

Tesla chooses TSMC over Samsung with huge 4nm chip order

A recent source has made available that the deal between Elon Musk’s Tesla and TSMC is now complete, making Tesla one of the seventh-largest clients of TSMC….! Tesla had a huge 4nm chip order at TSMC, choosing TSMC over Samsung. The 4nm chips will be used in Tesla cars’ self-driving systems in the future.

Last year, TSMC completed the construction of its Arizona facility and it hired around 250 Americans to work in the facility. TSMC’s Arizona facility will be the one manufacturing 4nm chips, and volume production will begin in 2024. For further addition in the fact, Apple CEO Tim Cook also said to switch to TSMC’s Arizona facility to fulfill its plans to buy 3nm chips, belike Tesla.

In 2024 TSMC will begin chip production, similar to when it will begin manufacturing 4nm chips for Tesla. Mark Liu Chairman of Taiwan Semiconductor said the new Arizona facility would generate $10 billion in revenue once it gets functioning, in an event earlier this month.

The gap between TSMC and Samsung has grown wider to 40.6 percentage points in Q3 2022 compared to 33.8 percentage points in Q4 2021. So, Samsung is in a spot of bother as far as its foundry situation is concerned. Industry analysts believe it could be devastating for Korean semiconductor giant Samsung.

Moreover, it is also speculated that this deal would impact Samsung’s profits in the next couple of years. It was recently reported that Samsung is trailing way behind TSMC in the global foundry market in Q3 2022. Hope this would be helpful.

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