The automaker previously used chips made by Mobileye, which Intel acquired earlier this year. However, the two parted ways after a fatal Tesla Model S Autopilot accident in Florida. Its current Autopilot system uses NVIDIA chips, but Tesla clearly wants more: by building its own specialized processor, it can create a technology that can do precisely what it wants to achieve, including true autonomous driving. Company chief Elon Musk once said that Tesla aims to have fully autonomous cars by 2019 -- we'll just have to wait and see if it can stick to that timeline.

Update: A GlobalFoundries spokesperson responded to this report with the following statement: