Samsung Electronics has entered the final preparation stage for manufacturing the next generation artificial intelligence chip for Tesla, known as the AI5. Industry sources recently confirmed that Jeong gon Kim, a Senior Engineer at Samsung Foundry, disclosed via LinkedIn that the Tesla Samsung AI5 silicon has officially reached the tape out phase. This milestone indicates that the final blueprints have been delivered to the factory floor, marking the transition from design to physical silicon verification and eventual mass production.
The manufacturing process will utilize Samsung advanced 2 nanometer foundry technology at its newly constructed facility in Taylor, Texas. While Tesla Chief Executive Officer Elon Musk previously shared images of early AI5 prototypes on social media earlier this year, those initial units were produced by TSMC. This upcoming production run represents Samsung first physical entry into the fabrication of the AI5 silicon, proving the viability of the 2nm process node for high performance automotive and robotics workloads.
The commencement of the AI5 tape out phase is part of a broader semiconductor supply agreement signed between Samsung and Tesla last year, valued at approximately $16,500,000,000. Under the current production roadmap, Tesla is diversifying its manufacturing partners to secure supply chain stability. Samsung currently manufactures the older AI4 processors using a 7 nanometer process at its Pyeongtaek facility in South Korea. For the newer generations, Tesla is splitting the AI5 production volume between Samsung and TSMC, while Samsung has reportedly secured exclusive manufacturing rights for the upcoming AI6 processor.
This massive contract is expected to accelerate the financial recovery of Samsung non memory semiconductor division. Financial estimates for the 2nd quarter indicated that while the memory division generated 94% of the corporate operating profit, the foundry and non memory divisions suffered an operating loss of roughly 600,000,000,000 Korean won. Industry analysts project that the foundry business will narrow these losses in the coming months, reaching full profitability next year as volume shipments of the 2nm Tesla chips begin in earnest.
To prepare for this large scale production, Samsung has accelerated the setup of its Taylor, Texas manufacturing hub, which represents a $17,000,000,000 investment. The company began moving key front end and back end fabrication equipment into the facility earlier this year, deploying senior engineering teams from its South Korean headquarters to optimize early silicon yields. The Taylor site is scheduled to begin initial operations late this year, with full commercial mass production for major clients commencing next year.
Samsung is also leveraging this Texas facility to secure turnkey contracts with other global technology giants. The company is actively negotiating advanced packaging and foundry partnerships with companies such as AMD and Anthropic. To further solidify these alliances, Samsung Chairman Lee Jae yong recently met with key Silicon Valley leaders and attended the Sun Valley Conference alongside Foundry President Jin man Han to discuss expanding custom chip production for autonomous driving, robotics, and cloud data centers.
