Tesla has confirmed its participation in TSMC’s (Taiwan Semiconductor Manufacturing Company) 3nm NTO chip design finals for the upcoming year. This surge in TSMC’s 3nm chip production, scheduled for 2024, reflects the growing demand for advanced semiconductor solutions. Notably, Tesla’s inclusion as an N3P customer signals its intent to leverage TSMC’s cutting-edge technology for the production of next-generation Full Self-Driving (FSD) smart driving chips.

About TSMC’s N3P process

TSMC‘s ambitious plan for the N3P process involves commencing production in 2024. Compared to the N3E process, N3P aims to deliver a 5% improvement in performance, a 5% to 10% reduction in power consumption, and a remarkable 1.04 times increase in chip density. TSMC has emphasized that N3P’s performance, power, and area (PPA) metrics, along with technology maturity, outpace Intel’s 18A process.

Tesla’s collaboration with TSMC is not new, with the electric vehicle manufacturer having placed multiple orders in the past. Previous ventures include the Dojo D1 chip utilizing the 7nm process and the HW 4.0 chip featuring the 5nm process. The addition of Tesla to the N3P customer list marks a strategic move for both companies.

Analysts foresee this partnership propelling Tesla to the status of TSMC’s seventh-largest customer, injecting fresh momentum into TSMC’s revenue growth trajectory. As Tesla continues to lead the automotive industry in innovative technologies, the collaboration with TSMC underscores the pivotal role semiconductor advancements play in shaping the future of electric and autonomous vehicles.

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