Tesla has secured a $16.5 billion agreement with Samsung’s foundry division to manufacture its next-generation self-driving chips. While Tesla was once the leading global electric vehicle (EV) manufacturer, it has now been surpassed by China’s BYD. BYD and Samsung are reportedly in discussions for the production of self-driving chips, as the global EV leader may turn to Samsung for its chip-making needs.
China’s Nio already incorporates Samsung-made chips in its vehicles. A recent report suggests that Samsung’s foundry division is negotiating with BYD and other Chinese EV manufacturers to secure deals for self-driving chip production using Samsung’s 4nm and advanced 2nm processes.
China hosts numerous EV manufacturers, and many of their models feature advanced driving aids, leading to a growing demand for sophisticated chips. Samsung is among the few companies capable of meeting this demand. Chinese foundry service providers currently lack the advanced production capacity needed by local EV manufacturers, prompting them to seek alternatives like Samsung to fulfill their requirements.
