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July 13 (Asia Today) — Samsung Electronics is reportedly nearing production of Tesla’s next-generation AI5 processor at its semiconductor plant in Taylor, Texas, as the South Korean chipmaker prepares to begin operating the long-delayed facility.
An employee in Samsung’s foundry division said in a LinkedIn post that the Tesla-Samsung version of the AI5 chip had completed tape-out, according to industry sources Monday.
Tape-out is the point at which a chip’s finalized physical design is transferred to a semiconductor foundry for prototype manufacturing and testing. It is an important step toward production but does not mean commercial mass production has begun.
The chip is expected to be manufactured using Samsung’s advanced 2-nanometer process at the Taylor plant and later installed in Tesla products.
The Taylor facility is expected to begin initial operations near the end of this year, with broader production beginning in 2027, according to industry projections. Samsung has not publicly confirmed a detailed production schedule for the AI5 chip.
The project follows a foundry supply agreement Samsung disclosed in 2025 that was valued at about 22.7 trillion won ($15.1 billion), based on the XE mid-market exchange rate Monday.
The customer was not identified in Samsung’s disclosure, but Tesla Chief Executive Officer Elon Musk later said the contract involved the electric vehicle company’s next-generation AI chips.
Musk said in April that Tesla’s chip design team had completed the AI5 tape-out and thanked Samsung and Taiwan Semiconductor Manufacturing Co. for helping make production possible.
Industry sources said Musk’s April announcement primarily referred to a version of the chip being prepared for production by TSMC. The latest report is believed to concern a separate Samsung-manufactured version.
Tesla is developing a series of proprietary artificial intelligence processors for use in autonomous driving systems, humanoid robots and data centers.
The company’s chip road map includes the existing AI4 processor, an upgraded AI4 version and the next-generation AI5, AI6 and AI6.5 chips.
Samsung and TSMC are expected to divide production among the different generations and versions of the processors.
Samsung currently produces Tesla’s AI4 chip using a 7-nanometer process at its Pyeongtaek semiconductor complex in South Korea, according to industry sources.
The upgraded AI4 processor is also expected to be manufactured at the Pyeongtaek site.
AI5 production is reportedly expected to be divided between Samsung and TSMC, while Samsung is expected to play a major role in producing the later AI6 chip at the Taylor plant.
Reports concerning the exact allocation of AI5, AI6 and AI6.5 production have varied, and neither Tesla nor Samsung has publicly confirmed the full manufacturing plan.
The Taylor project could become an important test of Samsung’s ability to expand its advanced foundry business in the United States and narrow its gap with TSMC.
Samsung announced the Taylor plant in 2021 but repeatedly delayed equipment installation and commercial operations amid weak foundry demand and uncertainty over customer orders.
If AI5 enters production as planned, it could become one of the Taylor plant’s first major products using Samsung’s gate-all-around 2-nanometer technology.
The contract could also help reduce losses in Samsung’s foundry business during the second half of this year and support a return to profitability after Tesla shipments increase in 2027.
Samsung is also cooperating with Nvidia on autonomous-driving processors and with U.S. AI chip developer Groq, while industry officials have raised the possibility of broader business with Qualcomm and Advanced Micro Devices.
Samsung Electronics Chairman Lee Jae-yong recently attended the Sun Valley Conference in Idaho with Han Jin-man, the executive who leads Samsung’s foundry business.
The annual gathering brings together executives from major global technology and media companies. Industry observers said the Samsung executives may have discussed expanded AI semiconductor and foundry cooperation with potential customers.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260713010004757
