Samsung to Produce Tesla Car Chips Until 2033



Samsung has signed a contract with Tesla to produce chips for Tesla until 20233, according to a Bloomberg report. The contract is worth 22.76 trillion won (~RM 70 billion), with the company's identity initially kept confidential at Tesla's request.


The contract will help Samsung's foundry business, which has been hit hard by the failure to secure a chip contract from Qualcomm and Google's move to TSMC. Unlike the needs of AI and smart device chips, chips for automotive use do not require the latest fabrication technology.


The issue facing Samsung Semiconductor is that their 3nm and 2nm chip production rates are lower than those of TSMC. Although Samsung was the first company to produce 3nm GAA chips, they have not received the expected number of customers, with the Exynos 2500 chip being the most well-known chip using this technology.

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