Tesla buys chips for cars from TSMC

It is said that the famous American electric car company Tesla will order 4nm chips from Taiwanese company TSMC instead of Samsung.

DigiTimes Asia reports that Tesla has signed a major contract with Taiwan Semiconductor company TSMC to manufacture 4nm chips. The agreement also makes Tesla the 7th largest customer of TSMC.

TSMC’s 4 nm chips will be used in Tesla’s future self-driving hardware, and these chips will be produced from TSMC’s new factory in Arizona starting in 2024.

The TSMC Arizona chip factory will also produce 3 nm chips in 2026, and this factory will also supply the chips needed for Apple products.

TSMC is planning to build a second chip factory in Arizona, and the investment in Arizona will range from $12 billion to $40 billion, he said. TSMC is building a $12 billion chip factory in Phoenix, Arizona, and expects to open a second factory in 2026. The annual chip wafer production of these two factories can reach about 600,000.

Once construction is complete, the Arizona plant could generate up to $10 billion in revenue for the company. The gap between TSMC and Samsung in the world of chip manufacturing will widen as they can find large customers.

The South Korean company recently lost a Flagship Chipsets customer to Qualcomm.