Asian Tech Press (Dec 20) -- According to media reports, Samsung Electronics, which has a significant share of the chip foundry market, will beat TSMC, the world's largest chip foundry, to win the foundry contract for Tesla's next-generation self-driving chip.

Korean media, citing several sources, reported that Samsung Electronics will be awarded the foundry contract for Tesla's next-generation self-driving chip.

Samsung will be awarded the foundry contract for the HW 4.0 chip. One of the sources revealed that Tesla and Samsung Electronics' chip foundry division, which began cooperating on design and samples earlier this year, Tesla has decided to outsource the HW 4.0 Autopilot chip to Samsung Electronics for foundry work.

The source also revealed that Samsung Electronics plans to use the 7nm process in their factory in Hwaseong, South Korea, to OEM HW 4.0 chips for Tesla. Samsung Electronics uses a 7nm process foundry to ensure higher yields and stable performance after installing the car.

The current electric car produced by Tesla is equipped with HW 3.0 chip, which is also OEMed by Samsung Electronics.