Key Highlights
- Samsung announced it will start volume manufacturing of Tesla’s AI6 chips at its Taylor, Texas facility during the latter half of 2027
- The disclosure came from Samsung’s Foundry division leader during a shareholder meeting on Wednesday
- This production commitment follows a multiyear $16.5 billion agreement Samsung established with Tesla last July
- Additionally, Samsung entered into a memorandum of understanding with AMD for HBM4 memory supply for AMD’s upcoming MI455X AI accelerators
- Shares of Samsung Electronics climbed 7.5% in Seoul trading, surpassing the Kospi index’s 5% advance
Han Jin-man, Samsung Electronics President and Head of the Foundry Business, delivered two significant announcements to shareholders on Wednesday that sparked positive market reaction.
Shares of Samsung surged 7.5% in Seoul trading. With the broader Kospi index advancing 5% during the same session, Samsung’s performance demonstrated clear outperformance driven by these strategic announcements.
Han provided confirmation that Samsung’s Taylor manufacturing facility in Texas will commence high-volume production of Tesla’s next-generation artificial intelligence chip during the second half of 2027. He characterized the Tesla partnership — which encompasses autonomous driving technology and robotics applications — as representing “a great opportunity” for the company’s foundry operations.
“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 semiconductor in development is Tesla’s AI6 processor. Elon Musk previously confirmed via X that Samsung’s Taylor production site would manufacture this chip.
This manufacturing schedule originates from a $16.5 billion multiyear agreement both companies executed in July 2024. That deal represented a significant achievement for Samsung’s foundry division, which continues efforts to narrow the competitive distance with industry leader TSMC.
AMD Collaboration
Along with the Tesla news, Samsung leveraged the shareholders’ meeting to reveal a separate memorandum of understanding with Advanced Micro Devices.
The MOU establishes Samsung as a supplier of HBM4 — high-bandwidth memory technology — for AMD’s forthcoming Instinct MI455X AI accelerators. The MI455X GPU represents a critical component of AMD’s Helios rack-scale architecture designed for AI infrastructure deployment.
The partnership framework also encompasses potential advanced memory supply for AMD’s sixth-generation EPYC processor lineup.
Beyond the memory supply agreement, both companies explored possibilities for a foundry collaboration. Such an arrangement would position Samsung as a contract chip manufacturer for future AMD products, though no definitive foundry agreement has been finalized at this stage.
Market Performance
AMD stock declined 0.14% during the trading session. Tesla shares increased 0.94%.
Samsung’s 7.5% rally in Seoul represented the most notable movement. The stock’s appreciation occurred during a session when South Korean equities were broadly higher, yet Samsung’s advance was particularly pronounced.
Han’s remarks were unambiguous: Samsung views its foundry operations advancing significantly through the Tesla collaboration. The Taylor facility, which has encountered production obstacles in previous years, is now positioned to become essential to one of the semiconductor industry’s most closely monitored manufacturing contracts.
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