Samsung and SK Hynix Shares Hit Record Highs as Nvidia Earnings Boost AI Chip Demand 
Gold Prices Steady in Asia, Set for Strong February Gains on Safe-Haven Demand 
Pentagon Weighs Supply Chain Risk Designation for Anthropic Over Claude AI Use 
Amazon’s $50B OpenAI Investment Tied to AGI Milestone and IPO Plans 
Snowflake Forecasts Strong Fiscal 2027 Revenue Growth as Enterprise AI Demand Surges 
BOJ Signals Possible April Rate Hike as Ueda Eyes Inflation and Wage Growth Data 
Trump Orders Federal Agencies to Halt Use of Anthropic AI Technology 
PBOC Scraps FX Risk Reserves to Curb Rapid Yuan Appreciation 
Boeing Secures $166.8 Million U.S. Navy Contract for P-8A Engineering and Software Support 
Bank of Korea Holds Interest Rate at 2.50% as Growth Outlook Improves Amid AI Chip Boom 
Meta Encryption Plan Sparks Child Safety Concerns Amid New Mexico Lawsuit 
Netflix Declines to Raise Bid for Warner Bros. Discovery Amid Competing Paramount Skydance Offer 
Anthropic Resists Pentagon Pressure Over Military AI Restrictions 
Toyota Plans $19 Billion Share Sale in Major Corporate Governance Reform Move 
Nvidia Earnings Preview: AI Chip Demand, Data Center Growth and Blackwell Shipments in Focus 
OpenAI Pentagon AI Contract Adds Safeguards Amid Anthropic Dispute 
OpenAI Targets $600B Compute Spend as IPO Valuation Could Reach $1 Trillion 
Samsung Electronics Co., the global memory chipmaking giant, has revealed a new strategic alliance with Tesla Inc. to manufacture the automaker's forthcoming Full Self-Driving (FSD) chips. Slated for inclusion in Tesla's Hardware 5 (HW 5.0) computers, the state-of-the-art chips, built on Samsung's 4-nanometer node, are expected to go into mass production within the next three to four years.
Previously, Tesla had chosen Taiwan Semiconductor Manufacturing Co. (TSMC) as its sole HW 5.0 auto chip production partner. However, Tesla plans to collaborate with both TSMC and Samsung or potentially rely solely on Samsung for the mass production of the fifth-generation auto chips.
This strategic shift arose after Samsung Group leader Lee Jay-yong discussed with Tesla Chief Executive Elon Musk to explore opportunities for strengthening their technological partnership. During their meeting at a Samsung research center in Silicon Valley, Lee presented Musk with favorable terms, including competitive contract prices, facilitating this new alliance.
Samsung has a history of supplying earlier versions of FSD chips to Tesla, supporting the production of various Tesla EV models such as the Model 3, Model 5, Model X, and Model Y. In addition to this collaboration, Samsung has experienced significant improvements in the yield of its 4-nm and 3-nm node processes, up to a 75% and 60% increase in yield, respectively.
To support its growing ambitions, Samsung is actively expanding its foundry capacity. This includes expanding its manufacturing footprint at the Pyeongtaek plant in Korea in 2022 and establishing a new plant in Texas, expected to be operational the following year. By 2027, Samsung aims to triple its global chipmaking capacity from its 2022 level.
The partnership between Samsung and Tesla marks a significant milestone in the advancement of autonomous driving technology, highlighting the concerted efforts of these industry leaders in driving innovation forward.
Photo: Tesla Fans Schweiz/Unsplash
