Chips, chips and more chips for Tesla
I remember a visit to a semiconductor manufacturing plant, where I realized how essential these tiny components are to our digital world. Tesla understands this well and plans to significantly increase its orders for D1 chips from Taiwan Semiconductor Manufacturing Company (TSMC)the Taiwanese giant of the sector.
According to reliable industry sources, the automaker plans to double its orders in 2024, reaching 10,000 units. And this is just the beginning, because the pace is expected to accelerate further in 2025. These chips are crucial for the supercomputer Dojoa key piece in the development of autonomous driving.
The Dojo is not a simple supercomputer. It processes huge volumes of video data to train machine learning models, continually improving the system Autopilot of Tesla. In other words, the more chips it has, the more powerful and efficient it becomes in making our cars truly autonomous.
A billion-dollar project on which Elon Musk is counting a lot
Last July, during a conference with analysts, Elon Musk spoke of colossal expenses, to the tune of a billion dollarsfor the development of the Dojo over the coming year. This announcement caused some shudders among investors, worried about the financial impact. Tesla quickly clarified that this investment would be split between research and development, just to reassure everyone.
The massive purchase of chips from TSMC marks the concrete start of this titanic project. The analysts of Morgan Stanley estimate that the rise of robotaxis and services based on Dojo technology could add up to 500 billion dollars to Tesla's market capitalization. A perspective that is enough to make you dream.
This enhanced collaboration with TSMC could also have a snowball effect on the semiconductor industry, boosting demand for advanced chips needed for autonomous driving. Good news for a sector in constant search of innovation.
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