Samsung lands $17bn foundry deal as Musk confirms Tesla’s AI6 chips to be made in Taylor

After grappling with 2nm yield challenges and failing to lock in major clients, Samsung is making a bold comeback. According to Digital Daily and Reuters, the company has announced a massive foundry deal worth over 22.7 trillion won (nearly $17 billion)—a potential game-changer for its chip business.

Digital Daily reports that the deal—worth 7.6% of Samsung’s 2024 revenue—could be its biggest foundry order ever, running through 2033. While the client remains confidential, industry insiders are betting on Qualcomm or Tesla. Bloomberg, meanwhile, points directly to Tesla as the likely buyer behind the multiyear deal.

Shortly after the announcement, Elon Musk revealed at his X that Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. In addition, he said that TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.

As TrendForce observes, Samsung and Tesla have been in talks for a long time and recently finalized their collaboration, reflecting Samsung’s growing success in stabilizing its 2nm process. TrendForce notes that Samsung’s 2nm production is set to officially begin in the first half of 2026, and although Tesla has signed the deal, the full cycle from design and tape-out to mass production will take at least one to two years.

This means the short-term revenue impact for Samsung will be limited, and uncertainties remain. Close attention is needed to monitor progress once the initial 2nm output is underway, as noted by TrendForce.

Speculation grows around Qualcomm and Tesla
Qualcomm has been a longtime Samsung partner in mobile AP, and a breakthrough 2nm deal is reportedly close. Now, with Samsung’s latest announcement, attention turns to whether it can also secure a major order from Tesla.

It is worth noting that Tesla, which designs its own Full Self-Driving (FSD) and high-performance computing chips, has long partnered with TSMC. As Not a Tesla App reported, Tesla is preparing to produce its next-generation FSD chip—internally referred to as AI5 or HW5—with TSMC as its foundry partner. Rumor has it that Tesla is planning to use TSMC’s 3nm (N3P) process, as Notebookcheck stated.

However, industry buzz suggests that Tesla is actively seeking to deepen its partnership with Samsung as part of a broader supply chain diversification, as per Digital Daily. Earlier this year, Samsung Foundry chief Han Jin-man met personally with both Tesla and Qualcomm during a U.S. trip—sparking speculation that this new deal could be the outcome of those high-level talks, the report notes.

Samsung’s recent progress
The deal, thus, is regarded as a clear sign that Samsung Foundry is not only improving yields but also regaining client trust, marking a key turning point as major U.S. customers return. According to Wccftech citing FNnews, Samsung has deployed chip manufacturing experts to its Texas plant, set for mass production in 2026. This move likely aims to speed up the Taylor facility’s construction and hints at growing interest from U.S. firms in placing orders with Samsung, the report adds.

According to New Daily, Samsung’s 2nm Exynos 2600 chip—expected to power the Galaxy S26 series in 2026—has now entered the prototype mass production phase. Digital Daily suggests that with yields on its 2nm GAA process surpassing 30% and approaching the 40% mark, the company is regaining technological credibility—and reentering the race for large-scale orders.

-- Source: TrendForce, Taiwan.