TLDR
- Samsung confirmed it will begin mass-producing Tesla’s next-gen AI6 chips at its Taylor, Texas plant in the second half of 2027
- The announcement was made by Samsung’s Foundry head at a shareholders’ meeting on Wednesday
- The production stems from a $16.5 billion multiyear deal Samsung signed with Tesla in July last year
- Samsung also signed an MOU with AMD to supply HBM4 memory for AMD’s next-gen MI455X AI accelerators
- Samsung Electronics stock rose 7.5% in Seoul, outperforming the Kospi index which gained 5%
Samsung Electronics President and Head of Foundry Business Han Jin-man addressed shareholders on Wednesday with two pieces of news that the market clearly liked.
Samsung stock jumped 7.5% in Seoul. The broader Kospi index rose 5% on the same day, meaning Samsung outpaced the market on the back of the announcements.
Han confirmed that Samsung’s Taylor fabrication plant in Texas will begin volume production of Tesla’s next-generation AI chip in the second half of 2027. He described the Tesla collaboration — spanning autonomous driving and robotics — as “a great opportunity” for its foundry business.
“The next-generation Tesla chip is scheduled for mass production at the Taylor fabrication plant in the U.S. in the second half of next year, with both its design and manufacturing progressing smoothly,” Han said.
The chip in question is Tesla’s AI6. Elon Musk confirmed on X last year that Samsung’s Taylor facilities would handle production of it.
The production timeline follows a $16.5 billion multiyear deal the two companies signed in July 2024. That contract was a major win for Samsung’s foundry arm, which has been working to close the gap with rival TSMC.
AMD Partnership
Beyond Tesla, Samsung used the shareholders’ meeting to announce a separate memorandum of understanding with Advanced Micro Devices.
Under the MOU, Samsung will supply HBM4 — high-bandwidth memory — for AMD’s next-generation Instinct MI455X AI accelerators. The MI455X GPU is central to AMD’s Helios rack-scale architecture for AI infrastructure.
The agreement also covers potential supply of advanced memory for AMD’s sixth-generation EPYC processors.
On top of the memory deal, the two companies discussed a potential foundry partnership. That would see Samsung provide contract chip manufacturing for future AMD products, though no firm deal on that front has been confirmed.
Stock Move
AMD stock edged down 0.14% on the day. Tesla rose 0.94%.
Samsung’s 7.5% gain in Seoul was the headline number. The stock’s move came on a day when the broader Korean market was already up, but Samsung’s jump stood out.
Han’s comments were direct: Samsung sees its foundry business taking a step forward through the Tesla work. The Taylor plant, which has faced production challenges in prior years, is now set to be central to one of the chip industry’s most-watched production contracts.
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