Tesla's next generation FSD hardware will be manufactured by TSMC
Tesla
As Tesla continues to send out the latest FSD Beta, 10.69.3.1, the next generation of Tesla's FSD computer will be using chips manufactured by Taiwan Semiconductor Manufacturing Company Limited (TSMC). Although you may be familiar with this company, there may be a product in your hand now that uses its technology. Apple is a significant customer of TSMC.
Tesla is reportedly dropping Samsung to go with TSMC for the next generation of the Full Self Driving computer. The current computer, Hardware 3, is already a major force. But there are reports that Tesla is preparing a Hardware 4 computer. It's believed to be about three times faster than the current computer.
These TSMC chips are considered the most sophisticated available at 4-nanometer and 5-nanometer processes. They have increased speed and reduced power consumption compared to the previous 7-nanometer process.
A report published by the Taiwan Economic Daily and China's IT House states (translation provided by Electrek): TSMC is receiving orders for vehicles, and it is reported that it has replaced Samsung and won a large order for Tesla's new generation of fully automatic driver assistance (FSD) chips, which will be produced at 4/5 nanometers. Tesla is expected to become one of TSMC's top seven customers next year. It is the first time that TSMC's main customer has a pure electric car factory, which will help resist the impact of consumer electronics boom adjustments.
While TSMC, one of the largest semiconductor companies in the world, is no stranger to the high demand and popular products, this would be the first time it is supplying to an electric vehicle company. Samsung may have lost the chip deal, but it will still be a big part of Tesla's future. In addition, Samsung is producing the advanced cameras that Tesla requires now that FSD relies on Vision only for its Advanced Driver Assistance System (ADAS).
Tesla used Nvidia hardware before switching to the Samsung chip in 2019. The launch of hardware 3.0 increased the frames processed by 21 times. But Elon Musk has stated a new chip has been in the works for years. FSD Version 11 is right around the corner, and it includes a single technology stack to support city and highway driving. So it seems the next big advance will be in the hardware.
Tesla revealed hardware 3.0 and its capabilities during its Autonomy day in 2019. Tesla may hold another event next year to show off the latest hardware.
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Tesla signaled its intention to launch its first Robotaxi network in Austin, Texas, with company-owned and operated vehicles, back in January. This network will be Tesla’s first foray into truly autonomous vehicles - ones that aren’t being directly supervised by a driver. Later in February, Tesla’s executive team confirmed that the plans were on track for the launch of the Austin network both on X and during several interviews that they participated in.
At the end of February, we also found out that Tesla has applied for a Supervised Robotaxi license in California, where the network will also launch, but with safety drivers in place.
This is an ambitious plan, but FSD has really come a long way in the past year. FSD V12 was a massive step forward from V11, and V13 has made the experience smoother and safer than ever before. FSD V14 is expected to be another big step up with auto-regressive transformers and audio input.
Still on Track
Now, Elon has tripled down on the fact that Tesla will be launching their first autonomous robotaxi network in Austin - just two months away at this point. It seems that Tesla is fully set to launch their first fully unsupervised self-driving vehicles that will carry paying passengers in June.
Additional Cities
The best part is that Elon also confirmed that they’re targeting robotaxi networks launching in many cities within the United States by the end of this year. However, remember that this will be a Tesla-run network at first - Tesla owners won’t be able to add their vehicles to the Robotaxi fleet right away.
Adding Customer Vehicles
It will take some time before Tesla meets their strict internal safety requirements before it lets customers add their own vehicles to the network. Tesla’s executive team mentioned that they intend to let owners add their own vehicles to the fleet sometime in 2026. This happens to be the same time frame that Tesla plans to launch the Robotaxi across the United States, Mexico, and Canada — something that could only be done with customer-owned cars.
That final step will be bold—and it may come with complications, especially given that autonomous vehicle approval spans municipal, state or provincial, and even federal levels. There are plenty of regulatory hurdles ahead, but this is undoubtedly shaping up to be one of the most exciting times for Tesla.
Launch Event
With the Robotaxi network launching and Unsupervised FSD just around the corner, there’s a lot to get excited about. Tesla is expected to host a launch event at Gigafactory Texas in Austin to mark the debut of its first Robotaxi network. The company previously hinted that referral code users could receive invites—offering a rare chance to score an early ride in a Robotaxi outside the Hollywood studio lot.
Tesla’s engineering mule vehicles—used to test autonomy for future platforms—have resurfaced after an extended absence. The last time we saw them was back in July, when Tesla was gearing up for its initial We, Robot event. Since then, sightings have been scarce.
These vehicles typically signal that Tesla is testing new camera placements or validating FSD ground-truth data. This time, however, they appear to be outfitted exclusively with the updated camera hardware seen on the Cybercab.
New Sightings
The mules have now been spotted in Boston, Massachusetts, and Concord, New Hampshire—their first known appearances this far east. This suggests Tesla is actively collecting data to evaluate and optimize FSD performance in new regions. Thanks to Reddit user Ready_Medium_6693 for catching the one in Concord.
Elon Musk recently mentioned that Tesla plans to expand Robotaxi networks beyond the initial Texas and California launches. So while these sightings aren’t entirely unexpected, the speed of their arrival is. It suggests Tesla is confident in its ability to train FSD for local traffic rules and driving behaviors to the point it no longer needs a driver.
Bumper Cameras
The vehicle that’s been spotted in Boston is the usual Tesla engineering Model 3… except with one unique twist. It includes a front bumper camera. Shout out to @Dylan02939106 for catching the bumper camera in these photos.
The Refreshed Model 3 Mule with a Bumper Camera!
@Dylan02939106 on X
We previously released an opinion piece regarding whether the front bumper camera would be required for Unsupervised FSD. In our eyes, Tesla will require a bumper camera for Unsupervised FSD - if only to improve direct visibility in the bumper area of the vehicle. This is key for low-speed maneuvering in crowded areas like parking lots and garages, as well as for key features like Actually Smart Summon.
It isn’t surprising that Tesla is continuing to evaluate vehicles with a bumper camera - the Cybertruck, Cybercab, and Refreshed Model Y all have them now - and the rest of the lineup, including the flagship Model S and X, as well as the refreshed Model 3 - were supposed to eventually receive them as well.
With the Model S and Model X set for refreshes this year—and the front bumper camera on this Model 3 looking well-integrated rather than a temporary setup—it seems likely that front bumper cameras will soon become standard across Tesla’s entire lineup.
The Robotaxi Mule in Boston
@Dylan02939106 on X
In fact, Tesla’s newest iteration of the FSD computer has a slot for the Bumper Camera on all AI4/HW4 vehicles, so a future retrofit could even be possible.
These are some pretty exciting times - we may see Robotaxi networks actually deploy in time for Tesla’s lofty goal of “sometime in 2026” for cities throughout North America. Once many American cities begin to accept their deployment, it will be easier to seek homologation in Mexico and Canada, enabling deployment throughout the continent.
