Tesla’s upcoming AI5 chip to be produced by Samsung, TSMC: Musk

Tesla’s upcoming AI5 chip will be produced by Samsung in Texas and TSMC in Arizona, CEO Elon Musk said on the company’s Q3 earnings call.

Musk said Tesla is targeting an oversupply of the AI5 chips, which could be used in vehicles, robots, or data centers.

The AI5 chip was first announced in 2024 and is designed to power Tesla’s self-driving features.

Samsung previously confirmed a US$16.5 billion chip contract with an unnamed client, which Musk later said was Tesla.

Tesla previously used Nvidia’s chips for its vehicles but switched to its own processors in 2019, while still using Nvidia’s GPUs for AI model training.

Musk said the AI5 chip will be manufactured only for Tesla’s needs, allowing the company to simplify the chip design and remove older components.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

US AI5 manufacturing faces node and packaging timing uncertainties

TSMC’s first Arizona fab began volume production in 2025 using N4 for Apple and Nvidia chips 1 2. TSMC plans N3 to N5, then N2 and A16 2. The U.S. Department of Commerce pegs a second fab for 2028, a third by decade end, while another report puts that third in mass production in 2027 2 3.
Tesla wants oversupply, which depends on when TSMC Arizona or Samsung Texas scale the node Tesla picks for AI5 1. Advanced packaging for AI parts, including CoWoS-L with HBM3E, remains in Taiwan 4. The gap adds cost, time, and supply chain complexity until U.S. capacity arrives by decade end, with Amkor’s Arizona campus targeting early 2028 4 5.

US advanced packaging window for suppliers before Amkor’s 2028 start

Amkor’s $7 billion Arizona site aims to start production in early 2028 5. That leaves room for other U.S. outsourced semiconductor assembly and test (OSAT) providers if Tesla wants fully domestic production from wafer fabrication through packaging and test sooner.
Substrate and materials suppliers can secure long-term contracts as Amkor’s Arizona campus plans over 750,000 square feet of cleanroom space 5 6. The campus lists Apple as first and largest customer, with Nvidia also supported 5 6. Substrates are laminated bases that route signals between a chip and a circuit board. Tool makers for chiplet integration plus HBM assembly should target TSMC Arizona or Samsung Texas, since neither has confirmed full domestic packaging for AI chips, while Micron with SK hynix build U.S. HBM packaging sites 4.