Samsung to Start Mass-Producing Tesla Chips in Second Half of 2027

By Kwanwoo Jun

Samsung Electronics said Wednesday it expects to begin mass-producing artificial-intelligence chips for Tesla at its Texas semiconductor plant in the second half of 2027, following a multiyear deal signed last year.

The South Korean tech giant is also seeking to expand its partnership with Advanced Micro Devices on next-generation AI memory and computing.

Samsung shares rose 7.5% in Seoul, outperforming the Kospi's 5% gain.

Jinman Han, head of Samsung's foundry business, told a shareholders meeting that collaboration with Tesla on autonomous driving and robots would be a great opportunity for its contract-manufacturing business to take a leap forward.

"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, according to Samsung.

Samsung signed a $16.5 billion multiyear deal with Tesla last July, a major win for its U.S. foundry business. Tesla Chief Executive Elon Musk confirmed the deal on X that Samsung's Taylor, Texas, facilities will produce Tesla's next-generation AI6 chip.

Separately, Samsung said it signed a memorandum of understanding with Advanced Micro Devices to supply high-bandwidth memory, HBM4, for AMD's next-generation Instinct MI455X AI accelerators.

The MI455X graphics processing unit will underpin AMD's Helios rack-scale architecture for next-generation AI infrastructure, the companies said.

The agreement also covers potential supply of advanced memory solutions for AMD's sixth-generation EPYC processors.

The companies also discussed a potential foundry partnership under which Samsung could provide contract chip manufacturing for next-generation AMD products.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

March 18, 2026 05:31 ET (09:31 GMT)