Samsung Eyes Tesla Chip Mass Production Next Year

Samsung is preparing to make advanced Tesla AI chips at its Taylor semiconductor hub. A fresh report suggests the company could begin mass production in the second half of 2027. This could allow the Korean Foundry to recover its lost business from the past several years.

Samsung Foundry prepares for AI5 and AI6 chip manufacturing

Samsung will make two AI chips for Tesla: AI5 and AI6. The former was initially fully assigned to TSMC. However, limited capacity and cost concerns led Tesla to allocate some production to Samsung. The latter is under a $16.5 billion production deal with the Korean Foundry that runs until 2033. Both chips will reportedly use the 2nm cutting-edge process to deliver faster and energy-efficient performance.

In a recent shareholders’ meeting, Han Jin-man, Samsung Electronics ​President ​and ⁠Head of Foundry ​Business, shared the company’s plans for Tesla chips. The executive said that volume production could begin in H2 2027 at the Texas factory, but he did not specify the chips.

Previous reports suggest that Samsung will initially focus on the AI5 chip, with pilot production already underway. The mass production could kick off in 2027. As for the AI6 chip, pilot production may start in 2027, with mass production planned for 2028. Whether the company sticks to this plan or makes changes should become clear in the coming months.

Meanwhile, Tesla is reportedly seeking to increase the production volume for the AI6 chip. The current agreement allows Samsung to make about 16,000 wafers per month. However, the carmaker now wants an additional 24,000 wafers per month, bringing the total to 40,000 wafers per month.

If it pans out, Samsung could see an improved factory utilization rate compared to last year. As a result, the company could reduce production costs per chip, boosting profit margins. More importantly, the Foundry division may report a profit in 2027, which would be huge.