Jenith
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Samsung has made a massive investment in a cutting-edge chipmaking plant in Taylor, Texas. A $16.5 billion order from Tesla has already been secured for its next-generation self-driving chips.
A new report claims that Samsung's Taylor plant is now close to launch, with Tesla's chips likely to be produced from the second half of this year.
This is one of Samsung's biggest investments in the US
A report out of South Korea mentions that Samsung will host a major equipment move-in ceremony at the Taylor plant on April 24th. Key Samsung Electronics executives are said to attend this event, including Han Jin-man, the president of the company's foundry division.
This has been a long time coming. Samsung initially broke ground on the project back in November 2022. The Taylor fab was projected to begin operations in October 2024. However, given the lack of visibility on major orders, Samsung had delayed production activities.
It then received a shot in the arm from Tesla last year when the automaker confirmed it had signed a $16.5 billion deal with Samsung for its AI5 and AI6 chips to be built at the Taylor fab. Samsung views its Taylor fab as key to catching up with TSMC, its biggest rival in the contract chipmaking space, which already enjoys a dominant lead over the Korean aspirant.
Samsung's focus on making 2nm production capacity available at its US plant is meant to offer major customers like Microsoft and Meta a viable alternative to TSMC's US plant which operates on the 4nm process technology.
Major chip designers will closely watch how Samsung is able to deliver on these 2nm Tesla chips. If yields are stable at mass production volumes, it could unlock a surge in orders for Samsung as TSMC simply doesn't have the capacity to absorb all of the 2nm orders.
A new report claims that Samsung's Taylor plant is now close to launch, with Tesla's chips likely to be produced from the second half of this year.
This is one of Samsung's biggest investments in the US
A report out of South Korea mentions that Samsung will host a major equipment move-in ceremony at the Taylor plant on April 24th. Key Samsung Electronics executives are said to attend this event, including Han Jin-man, the president of the company's foundry division.
This has been a long time coming. Samsung initially broke ground on the project back in November 2022. The Taylor fab was projected to begin operations in October 2024. However, given the lack of visibility on major orders, Samsung had delayed production activities.
It then received a shot in the arm from Tesla last year when the automaker confirmed it had signed a $16.5 billion deal with Samsung for its AI5 and AI6 chips to be built at the Taylor fab. Samsung views its Taylor fab as key to catching up with TSMC, its biggest rival in the contract chipmaking space, which already enjoys a dominant lead over the Korean aspirant.
Samsung's focus on making 2nm production capacity available at its US plant is meant to offer major customers like Microsoft and Meta a viable alternative to TSMC's US plant which operates on the 4nm process technology.
Major chip designers will closely watch how Samsung is able to deliver on these 2nm Tesla chips. If yields are stable at mass production volumes, it could unlock a surge in orders for Samsung as TSMC simply doesn't have the capacity to absorb all of the 2nm orders.