Tesla is expected to source its next-generation chip from Samsung Electronics.

The forthcoming Tesla Cybertruck will debut with Tesla’s new Hardware 4 computer and according to The Korea Economic Daily, Samsung is set to beat out Taiwan Semiconductor Manufacturing Co. for the contract to build the chip used in this computer.

“Tesla and Samsung’s foundry division have been working on the design and samples of the chip from the start of this year. Recently, Tesla decided to outsource the HW 4.0 self-driving chip to Samsung. It’s virtually a done deal,” a source told the publication.

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The new Hardware 4 computer will replace the Hardware 3 used by current Tesla vehicles and underpin the automaker’s semi-autonomous driving system. Elon Musk has previously claimed that the new computer, also known as the Full Self Driving Computer 2, will “likely be 1,000 per cent safer,” than a human driver, compared to the claimed 300 per cent of the current Full Self Driving Computer 1.

The Korea Economic Daily reports that the new chip will be produced by Samsung at its Hwasung plant and use 7-nanometer processing technology. This process is less advanced than the 5-nanometer processing technology Samsung also uses but has been selected to ensure higher production yields and better stability of the chip.

It is understood that Tesla decided to award Samsung the contract after considering production costs, the availability of Samsung technology in Tesla designing its own chips, and the possibility of long-term cooperation.

Elon Musk recently revealed that production of the Tesla Cybertruck won’t start until late 2022 and that full-scale production won’t start until 2023.