Samsung Electronics has completed the tape-out phase for Tesla's next-generation artificial intelligence (AI) semiconductor, the AI5, and is gearing up for full-scale operations at its factory in Taylor, Texas. The production phase of a 22.7 trillion won ($16.5 billion) foundry supply contract signed with Tesla last year is expected to signal a turnaround for Samsung's struggling foundry business.
According to industry sources on July 13, Kim Jeong-gon, a senior engineer at Samsung Electronics' foundry division, recently announced on LinkedIn that "the Tesla AI5 chip has completed tape-out," adding that "the AI5 will be produced at the Taylor factory using Samsung's 2-nanometer process and will soon be integrated into Tesla's latest products."
This is the first time a specific production schedule for the Tesla AI5 has been mentioned. Tape-out is the stage where the semiconductor design is finalized, and manufacturing data is handed over to the foundry for prototype production and mass production preparation. It essentially marks the last step before mass production, indicating that the project is on track.
Kim stated that he has been collaborating with Tesla engineers over the past few months, traveling between Palo Alto and Austin to finalize the design data tailored for the foundry manufacturing process.
Earlier, Tesla CEO Elon Musk revealed the tape-out of the AI5 chip via X (formerly Twitter) in April, expressing gratitude to Samsung Electronics and TSMC. However, the prototype disclosed at that time was reportedly produced by TSMC due to scheduling constraints.
Samsung Electronics signed a foundry supply contract worth $16.5 billion (approximately 22.7 trillion won) with Tesla last year. Initially, it was believed that Samsung would handle the production of the AI6, but subsequent Tesla earnings reports indicated that the AI5 would also be produced in collaboration with TSMC. It appears that Samsung will primarily focus on the AI6, while TSMC may take on the AI6.5 production.
With preparations for the mass production of the AI5 now underway, operations at the Taylor factory are expected to accelerate. Since April, Samsung has begun bringing in key front-end and back-end equipment and has deployed essential engineers from Korea to focus on securing initial yield rates. The factory is expected to undergo trial operations by the end of this year, with full-scale production anticipated to begin next year.
The Tesla project is expected to be a turning point for the normalization of Samsung's foundry business. Currently, the foundry division is facing significant losses, but as production ramps up for major clients like Tesla, NVIDIA's autonomous driving chips, and Groq's AI chips, profitability is expected to improve. Additionally, there are discussions about securing more clients, including Qualcomm and AMD, which could position the Taylor factory as a key hub in Samsung's North American foundry strategy.
* This article has been translated by AI.
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