Alphabet Inc.’s Waymo has developed a custom application-specific integrated circuit (ASIC) to enhance robotaxi performance. The company is already deploying these chips in its latest generation of autonomous vehicles.

The new hardware aims to improve vehicle reflexes and navigation in complex urban settings. By designing chips in-house, Waymo reduces its reliance on third-party suppliers like Nvidia Corp.

Taiwan Semiconductor Manufacturing Co. produces the specialized chips, which are tailored to process sensor data and run AI models faster. Waymo expects the transition to lower long-term production costs.