Tesla Negotiating With Samsung To Produce Next-Gen Full Self-Driving Chip: Reports

A joint project between Tesla and Samsung, which aims to create a full self-driving (FSD) chip is currently under negotiation, according to reports.

The said chip, which will be produced by the South Korean electronics giant and designed by the American electric vehicle company as per Electrek, will power Tesla's next computer, dubbed Hardware 3. This computer will be able to deliver full self-driving capacity through future software updates.

In a statement at Tesla AI Day, CEO and product architect Elon Musk expressed his confidence that the computer will be able to attain full self-driving.

"I am confident that Hardware 3, or the Full Self-Driving computer 1, will be able to full self-driving at a safety level much greater than humans. I don't know, probably 200 or 300% better than a human," Musk said.

It can be recalled that in 2016, Tesla revealed all its future vehicles will be created with all the hardware required to achieve full self-driving capability via future updates. However, its original self-driving hardware suite, which was powered by an NVIDIA computer, fell short on computing power. It was not enough to sustain its efficiency through updates, so the company had to upgrade its computer twice.

At the event, Musk also revealed that the automaker is working on the next generation of its chips. Mentioning the Cybertruck release, Musk said the upcoming flagship launch will roughly be four times more capable than the current technology.

"Obviously, there will be a Hardware 4 or Self Driving Computer 2, which we will probably introduce with the Cybertruck maybe in about a year or so. That will be about 4 times more capable. Roughly," Musk added.

Tesla and Samsung are in the final stage of their negotiations, according to sources.

Though there are no announcements on the release date of the Samsung and Tesla collaborative project yet, reports claim it could roll out in 2022. The rumored timeframe is reportedly based on the Cybertruck launch.

Samsung is currently second to TSMC in the chip manufacturing industry. As of June, TSMC had 52.9% market share while Samsung had 17.3%, Reuters said in a report.