Jenith
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After winning a $16.5 billion chip manufacturing order from Tesla, Samsung has won another chip order from the carmaker. Tesla Motors CEO Elon Musk revealed that the company's next-generation AI chip, the AI5, will be made by both Samsung and TSMC.
During Tesla's Q3 2025 earnings call, the company's CEO, Elon Musk, revealed that the AI5 chip will be made by both Samsung Foundry (Samsung Electronics' chip manufacturing division) and TSMC. The AI5 chip will be used in Tesla's self-driving-equipped cars, AI servers, and humanoid robots. It will be installed in Tesla's cars starting late next year.
The AI5 chip will reportedly be made using Samsung Foundry's 3nm process node at the company's Hwaseong chip plant in South Korea. The AI4 is already being made by Samsung on the 4nm process node, while the AI6 chip will be made by Samsung on its 2nm process node at its Taylor chip plant in the US.
https://www.imeisource.com/wp-content/uploads/2020/09/Samsung-Hwaseong-Chip-Plant-Campus.jpg
This contract shows signs of Samsung's recovery in the semconductor chip contract manufacturing. After chips made using the South Korean firm's 5nm and 4nm process nodes showcased power consumption and overheating issues, fabless chip firms switched to TSMC for their 3nm and 4nm chips. And Samsung struggled a lot to get orders from clients.
Samsung's third-generation 4nm and first-generation 2nm process nodes reportedly perform quite well compared to TSMC's competing nodes. The Exynos 2600 will be the world's first chip that uses Samsung Foundry's 2nm process, and several firms, including Tesla and Qualcomm, will get their future chips using this node.
The South Korean firm has reportedly improved the yield of its 2nm process node over the past few months. Yield refers to the ratio of chips that pass the required quality to all the chips manufactured. To win more clients, Samsung has reportedly cut the price of making 2nm chips by 33%, while TSMC has reportedly decided to increase the price of 2nm process by 50% compared to its 3nm process.
Looking at all these reports and factors, it appears that Samsung is slowly getting its mojo back. And it is doing so at the right time, as the demand for AI chips is only set to rise for the next few years. That means it could earn dozens of billions of dollars in the coming years.
The post Tesla’s AI5 chip will be made by Samsung as well appeared first on imeisource.
Tesla's AI5 chip will be made by Samsung in South Korea
During Tesla's Q3 2025 earnings call, the company's CEO, Elon Musk, revealed that the AI5 chip will be made by both Samsung Foundry (Samsung Electronics' chip manufacturing division) and TSMC. The AI5 chip will be used in Tesla's self-driving-equipped cars, AI servers, and humanoid robots. It will be installed in Tesla's cars starting late next year.
The AI5 chip will reportedly be made using Samsung Foundry's 3nm process node at the company's Hwaseong chip plant in South Korea. The AI4 is already being made by Samsung on the 4nm process node, while the AI6 chip will be made by Samsung on its 2nm process node at its Taylor chip plant in the US.
https://www.imeisource.com/wp-content/uploads/2020/09/Samsung-Hwaseong-Chip-Plant-Campus.jpg
This contract shows signs of Samsung's recovery in the semconductor chip contract manufacturing. After chips made using the South Korean firm's 5nm and 4nm process nodes showcased power consumption and overheating issues, fabless chip firms switched to TSMC for their 3nm and 4nm chips. And Samsung struggled a lot to get orders from clients.
Samsung's third-generation 4nm and first-generation 2nm process nodes reportedly perform quite well compared to TSMC's competing nodes. The Exynos 2600 will be the world's first chip that uses Samsung Foundry's 2nm process, and several firms, including Tesla and Qualcomm, will get their future chips using this node.
The South Korean firm has reportedly improved the yield of its 2nm process node over the past few months. Yield refers to the ratio of chips that pass the required quality to all the chips manufactured. To win more clients, Samsung has reportedly cut the price of making 2nm chips by 33%, while TSMC has reportedly decided to increase the price of 2nm process by 50% compared to its 3nm process.
Looking at all these reports and factors, it appears that Samsung is slowly getting its mojo back. And it is doing so at the right time, as the demand for AI chips is only set to rise for the next few years. That means it could earn dozens of billions of dollars in the coming years.
The post Tesla’s AI5 chip will be made by Samsung as well appeared first on imeisource.