Tesla FSD hardware 4 could be based on TSMC chips produced at the latter company’s new US factory in Arizona, according to Taiwanese publications. Tesla could become one of TSMC's seven biggest customers.

Taiwan Semiconductor Manufacturing Co.'s (TSMC) new chip plant in Arizona, USA attracts more famous customers. According to media reports, Tesla will rely on Made in the USA chips and thus partially replace Samsung as the previous supplier. Over time, Tesla could become one of TSMC's top seven customers.

About one month ago, there was a rumor that Tesla would focus more on TSMC chips. The Taiwanese company announced that it is starting to build a chip factory in Arizona, US, since now there are very favorable conditions for development there. The factory will supply giants such as Apple, AMD, Nvidia, and Tesla, according to new rumors. According to media reports from Asia, Tesla may even become one of the top three customers of the TSMC factory in the US.

President Joe Biden signed the CHIPS and Science Act into law in early August, allocating billions to lure manufacturers to produce the widely used chips domestically. The law includes $52.7 billion in loans, grants, and other incentives as well as billions more in tax credits to encourage investment in U.S. semiconductor manufacturing.

TSMC's US factory is expected to produce new 4nm chips that will be used in Tesla FSD, according to reports. Thus, they will be key to the operation of full self-driving (FSD). So far, the chip manufacturer for FSD hardware is Samsung, which uses a 14 nm process technology for them.

© 2022, Eva Fox | Tesmanian. All rights reserved.

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