Chip Talk > Tesla's HW5 Chip and the Revolutionary 3nm Leap with TSMC
Published June 19, 2025
Tesla is once again making waves in the tech world with its bold move to partner with TSMC, the semiconductor giant, to produce its next-generation FSD (Full-Self Driving) chip, known as HW5 or AI5. This strategic decision signifies a remarkable shift in Tesla's technological trajectory, promising a significant leap in performance and capacity.
According to sources like Notebookcheck, the new chip will be produced using TSMC's cutting-edge 3nm (N3P) process, anticipated to deliver a staggering 2,000 to 2,500 TOPS (trillion operations per second). This marks an impressive four- to fivefold increase compared to the outgoing HW4 chip.
To appreciate this development, it's vital to consider the historical context of Tesla's chip evolution. The earlier HW3 relied on a 14nm process, while HW4 advanced to a 5nm process. Moving to 3nm technology, as per South Korean outlet Maeil Business Newspaper, represents not just a hardware improvement, but a paradigm shift likely to ripple through the autonomous driving industry.
Tesla's choice of TSMC is significant. The Taiwanese company is renowned for its manufacturing prowess and cutting-edge semiconductor technology. In February 2025, Economic Daily News reported Tesla's FSD chips in China were already utilizing TSMC’s 5nm processes. This longstanding collaboration ensures Tesla's chips are at the forefront of semiconductor technology, vital for sustaining its competitive edge in autonomous driving software.
Tesla's reliance on advanced packaging techniques such as InFO-SoW in its supercomputing systems like Dojo further highlights its forward-thinking approach to integrating high-speed, high-performance computing needs.
Despite this ambitious leap, Tesla faces significant hurdles. Production pauses have been reported, like temporary halts at its Austin facility affecting the Cybertruck and Model Y lines, noted by Business Insider. Furthermore, regulatory delays have impacted the launch timeline of Tesla's Robotaxi service.
Nevertheless, the introduction of HW5 is poised to reinforce Tesla's commitment to leading the charge in automotive innovation. This development is expected to accelerate the adoption of self-driving technology, potentially laying the groundwork for more autonomous solutions.
Tesla’s collaboration with TSMC for the HW5 chip underscores a definitive pivot towards more advanced, capable, and efficient technology in the automotive sector. With the promise of integrating TSMC’s 3nm process, Tesla is prepared not only to enhance its vehicles' capabilities but also to pave the way for a new era of autonomous driving. As mass production is slated for 2026, industry observers and consumers alike await the impact of these technological advancements.
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