Elon Musk-led electric vehicle maker Tesla has reportedly confirmed that it will participate in TSMC’s (Taiwan Semiconductor Manufacturing Company) 3nm NTO chip design finals for the upcoming year. TSMC is also expected to increase its 3nm chip production in 2024. This shows the growing demand for advanced semiconductor solutions.
How TSMC’s 3nm chips will help both companies
According to a report by GizmoChina, Tesla is set to become an N3P customer as it plans to use TSMC’s latest technology to produce next-generation Full Self-Driving (FSD) smart driving chips.
TSMC is planning to start the production of its N3P process in 2024. When compared to the previous N3E process, N3P is designed to deliver a 5% improvement in performance, up to 10% reduction in power consumption and a notable 1.04 times increase in chip density.
The Taiwanese chip designer has claimed that N3P’s performance, power and area (PPA) metrics as well as technology maturity will outpace Intel’s 18A process.
This is not the first time Tesla is set to collaborate with TSMC. In the past, the electric vehicle manufacturer had placed multiple orders with the chip designer.
Earlier, TSMC supplied the Dojo D1 chip which is based on the 7nm process and the HW 4.0 chip which features the 5nm process to Tesla. The company’s addition of Tesla to the N3P customer list will mark a strategic move for both companies.
Analysts have predicted that this partnership will help Tesla to become TSMC’s seventh-largest customer. This partnership will also inject fresh momentum into TSMC’s revenue growth trajectory.
As Tesla continues to lead the automotive industry with innovative technologies, the collaboration with TSMC shows the crucial role semiconductor advancements play in shaping the future of electric and autonomous vehicles.
Tesla is also planning to enter India’s electric vehicle market soon. However, Union Minister for Road Transport and Highway, Nitin Gadkari recently expressed his concerns about allowing driverless cars in the country. Gadkari said that he would not permit these vehicles in India as it has the potential to affect the jobs of India’s large population of drivers.
