Tesla will partner with Samsung to develop a 5-nanometer chip to power its autonomous vehicles, according to Tesmanian. The 5nm chip is a high-end product manufactured by only a small number of companies worldwide. 

  • Tesla team is currently working to move to a more sophisticated AI framework that will improve the capabilities of autopilot.
  • Samsung is already supplying 14nm chips, but this time, the two companies are expanding their partnership.
  • Tesla plans further to modernize its in-vehicle infotainment system (IVI), and Samsung is currently focusing on developments in the area.
  • Samsung is determined to skip the 7nm chip research and development and focus on 5nm chips before striking a supply deal with Tesla. 

Tesla stock is currently gaining as Samsung loses. TSLA: NASDAQ is up 0.59% on premarket, 005930: KRX is down 3.02%