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Samsung Electronics to start Tesla chip production in late 2027
Samsung Electronics expects to start mass-producing chips for Tesla at its Texas factory in the second half of 2027, Han Jin-man, president and head of the foundry business, said at a shareholders’ meeting.
In July last year, Elon Musk said Samsung’s new Texas wafer fab would produce Tesla’s next-generation AI chips, such as the AI6.
The company later confirmed a US$16.5 billion chip supply deal through 2033 for Tesla’s autonomous driving technology.
🔗 Source: Reuters
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Implications, context, and why it matters.
Samsung targets late-2027 volume production for Tesla AI chips under a $16.5 billion deal
- Samsung plans volume production in late 2027 for Tesla’s next-generation AI6 processor under a $16.5 billion contract that runs through 2033 1.
- Elon Musk called the $16.5 billion figure a “bare minimum,” and said total output could be several times higher 2.
- Manufacturing is expected to use Samsung’s 2-nanometer process at the new Taylor, Texas facility 3.
- The agreement bolsters Samsung’s foundry business (its contract chip-manufacturing unit), which has held 7.7% market share versus TSMC’s 67.6% 1.
Tesla is consolidating its AI chip roadmap as it winds down Dojo
- The deal follows Tesla’s move to wind down the Dojo supercomputer project while keeping focus on AI5 and AI6 chips for vehicles, robots, and data centers 4.
- Tesla picked the Texas site as part of a “No China, No Taiwan” sourcing plan meant to reduce geopolitical supply chain risk 3.
- Musk said Samsung has authorized him to help tune the production line at the Texas fab (semiconductor fabrication plant) 1.
- The tight setup offers a model for other tech firms seeking custom, onshore silicon (custom chips made in the US), yet it also concentrates risk for Tesla’s AI roadmap 5.
