Samsung’s 3nm Process Gains Traction as Tesla Adds AI5 to its Chip Orders

Samsung’s foundry comeback is gaining momentum. After signing a $16.5 billion deal to produce Tesla’s next-gen AI6 chip, the company may have now secured a contract to manufacture the AI5 as well. The move signals growing confidence in Samsung’s 3nm process, which analysts say has finally achieved the yield stability needed to compete with TSMC.

Not just the AI6, Samsung may also produce Tesla’s AI5 chip

While Samsung manufactured Tesla’s AI4 chip, the carmaker was expected to switch to TSMC for the AI5. However, it appears the company has changed its mind. Tesla CEO Elon Musk reportedly confirmed (via @Jukanlosreve/X) during the company’s Q3 2025 earnings call that both Samsung and TSMC will jointly produce the AI5 chip.

Tesla’s strategy might be aimed at mitigating supply chain risks, cutting costs, and avoiding over-reliance on any one foundry. However, it’s also evidence that Samsung’s 3nm process is stable enough to attract high-profile clients. The Korean firm had faced challenges in earlier years, with yield issues preventing many large-scale contracts.

Samsung’s 3nm yield stability started improving in mid-2025, enabling the successful rollout of the Exynos 2500. It shipped the Galaxy Z Flip 7 with the 3nm Exynos chip globally. With Tesla’s AI5 order underway, industry watchers expect the firm to leverage this momentum and win more customers onto its 3nm node. The company is also in contention to produce custom AI chips for Elon Musk’s privately held AI company, xAI.

With the AI6 deal, the new AI5 order, and a possible xAI partnership, Samsung’s foundry business is finally regaining momentum. These contracts not only fill production lines and stabilize revenue but also help rebuild investor confidence after several loss-making quarters. Whether Samsung can sustain this recovery by landing more flagship clients at its 3nm and 2nm nodes, only time will tell.