[News] Tesla Reportedly Taps TSMC’s 3nm for HW5 Chip; Mass Production Set for 2026

According to Mydrivers, citing Not a Tesla App, Tesla is reportedly preparing to produce its next-generation FSD (Full-Self Driving) chip—internally referred to as AI5 or HW5—with TSMC as its foundry partner. Rumor has it that Tesla is planning to use TSMC’s 3nm (N3P) process, as Notebookcheck states.

The chip is expected to deliver between 2,000 and 2,500 TOPS in performance, representing a four- to fivefold generational leap compared to HW4, as the reports highlight.

Tesla is reportedly preparing to launch its next-generation HW5 chip as early as next year, with mass production likely to begin in 2026, according to South Korean outlet Maeil Business Newspaper, as cited by Not a Tesla App. While HW3 was built on a 14nm process, the previous generation HW4 is based on a much more advanced 5nm process, as noted by the report.

Tesla’s Previous FSD Chip Upgrade in China Reportedly Uses TSMC’s 5nm Process

Tesla’s partnership with TSMC has been under the spotlight amid its ongoing FSD chip development. Back in February 2025, Economic Daily News, citing sources, noted that Tesla’s FSD chip upgrade in China was being manufactured using TSMC’s 5nm (including 4nm) process, while Samsung continued to supply older FSD chips and memory components.

Additionally, Economic Daily News mentions that Tesla’s Dojo supercomputer—the core of its FSD system—primarily uses TSMC’s 7nm process and incorporates InFO-SoW advanced packaging to support high-speed computing and tailored performance requirements.

Tesla Reportedly Hit by Production Pauses and Robotaxi Launch Delays in Austin

Meanwhile, despite reported progress on its chip technology, Tesla is expected to temporarily halt production of its Cybertruck and Model Y lines at its Austin factory for a week—marking at least the third such pause this year, according to Business Insider, citing sources.

In addition, although Tesla had planned to launch its Robotaxi service in Austin, Texas, on June 22, Reuters notes that state lawmakers have formally requested a delay until September due to the implementation of a new law.

Read more

• [News] Tesla’s Robot Plans Stumble Amid China’s Rare Earth Export Curbs
• [News] Tesla to Roll Out FSD in China Using TSMC-Made Chips Amid Rising Local Competition

(Photo credit: Tesla)