Order the King of Android! Get your Galaxy S25 Ultra today! Follow us on Google news!

SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

News For You
Notifications

Samsung loses Tesla’s huge 4nm chip order to TSMC

Business
By 

Last updated: December 23rd, 2022 at 08:08 UTC+01:00

The latest report provides solid proof that the 4nm chip deal between Elon Musk-led Tesla and Taiwanese silicon giant TSMC has gone through. A few months ago, it was reported that Tesla placed 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.

According to DigiTimes Asia, the deal between Tesla and TSMC is now complete, making Tesla one of the seventh-largest clients of TSMC. Reportedly, TSMC's Arizona facility will be the one manufacturing 4nm chips, and volume production will begin in 2024. TSMC completed the construction of its Arizona facility last year, and it hired around 250 Americans to work in the facility.

Not only Tesla but Apple CEO Tim Cook has also said that his company plans to buy 3nm chips from TSMC's Arizona facility. TSMC will begin chip production in 2024, similar to when it will begin manufacturing 4nm chips for Tesla. In an event earlier this month, Taiwan Semiconductor's Chairman Mark Liu said the new Arizona facility would generate $10 billion in revenue once it gets functioning.

Industry analysts believe that this would be a big blow for the South 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. 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.

However, on the other side, Tesla chose Samsung as the camera supplier for its Vision self-driving system. While there are rumors suggesting that Tesla will make use of Samsung cameras in its upcoming Cybertruck or other EVs, nothing has been confirmed as of yet.

Business 4nmSamsung FoundryTaiwanTeslaTSMCUSA
Galaxy AI summarized

Scroll for more related content
News For You

You might also like

TSMC’s Intel foundry deal could spell trouble for Samsung

TSMC’s Intel foundry deal could spell trouble for Samsung

Samsung's been struggling to catch up with TSMC in the lucrative contract chip manufacturing market. The Korean giant has been investing heavily in new foundry facilities to increase its capacity and technology, but there's a new deal on the horizon that might spell trouble for Samsung. TSMC holds the dominating market share while Samsung is […]

  • By Adnan Farooqui
  • 1 day ago
Galaxy A13 5G and 4G get February 2025 security update

Galaxy A13 5G and 4G get February 2025 security update

Samsung is rolling out software updates to two of its Galaxy A-series smartphones from 2023, the Galaxy A13 and the Galaxy A13 5G. It offers the February 2025 security patch. It fixes a bunch of security vulnerabilities that you can check out here. Currently, the two phones are on a quarterly update schedule, which means […]

  • By Abid Iqbal Shaik
  • 2 days ago
Galaxy Z Flip 4 gets February 2025 security update

Galaxy Z Flip 4 gets February 2025 security update

Yesterday, we reported that Samsung has released the February 2025 security patch to the Galaxy Z Fold 4, which fixes a lot of security issues. Well, the company is now rolling out the update to its sibling, the Galaxy Z Flip 4. For now, the update is available only for the carrier-locked variant of the […]

  • By Abid Iqbal Shaik
  • 2 days ago
Galaxy S25’s first stability update expands to more users in USA

Galaxy S25’s first stability update expands to more users in USA

A few days ago, Samsung released its first software update to the Galaxy S25 series. Earlier, it was released in South Korea and then in the USA. Now, more people in the USA are getting access to the new update. Galaxy S25 gets first bug-fixing and stability update in USA The first software update for […]

  • By Daniel van Dorp
  • 2 days ago
Galaxy Z Fold 4 gets a new update but it is not One UI 7

Galaxy Z Fold 4 gets a new update but it is not One UI 7

If you are a Galaxy Z Fold 4 user, you might be eagerly waiting for the Android 15-based One UI 7.0 update. While there’s still no information about when Samsung will release it, the company is now rolling out the February 2025 security patch to the smartphone. It fixes many security issues and you can […]

  • By Abid Iqbal Shaik
  • 3 days ago
Samsung releases Galaxy S25’s first software update in the USA

Samsung releases Galaxy S25’s first software update in the USA

Samsung has released the first software update for the Galaxy S25 series in the USA. This update brings bug fixes and the newest security patch to the devices in the lineup. Galaxy S25 gets bug fixes and enhancements with February 2025 update Earlier this week, Samsung released the first software update to the Galaxy S25 […]

  • By Daniel van Dorp
  • 5 days ago