Samsung to produce Tesla’s AI6 chips, escalating 2nm race with TSMC

Per a report by Central News Agency, Samsung Electronics recently announced a 22.8 trillion won (approximately USD 16.5 billion) chip foundry deal with a global company. Tesla CEO, Elon Musk, later confirmed that Samsung will produce Tesla’s next-generation Full Self-Driving (FSD) AI6 chips at its Texas facility.

TrendForce notes that this suggests Samsung’s efforts to improve the stability of its 2nm process are beginning to show results—though uncertainties remain.

According to TrendForce, Samsung and Tesla had been in talks over the partnership for some time, and the recent formal agreement signals early progress in Samsung’s 2nm process development.

Meanwhile, TrendForce points out that Samsung’s 2nm process is set to begin volume production in the first half of 2026. Although the Tesla deal has been signed, it will take at least one to two years to progress from design to mass production, limiting any short-term revenue gains for Samsung.

As TrendForce indicates, the Samsung-Tesla collaboration is unlikely to bear fruit before 2028, with significant uncertainties remaining. The outcome will depend on the performance of Samsung’s initial 2nm output. In the meantime, Tesla is expected to continue relying primarily on TSMC for chip production.

Musk has stated, according to Reuters, that Samsung currently manufactures Tesla’s AI4 chips, while TSMC will produce the AI5—initially in Taiwan, followed by Arizona.

Wafer foundry wars: TSMC and Samsung’s competitive history
Central News Agency notes that TSMC founder Morris Chang once called Samsung an “800-pound gorilla,” underscoring the seriousness of the competition. As the report highlights, TSMC and Samsung have long been rivals in the wafer foundry business. At one point, both companies supplied chips for Apple’s smartphones.

During that time, Apple used two different processors—one from TSMC and one from Samsung—for the same iPhone model, sparking controversy over performance differences, as TSMC’s chips proved more power-efficient, as Central News Agency highlights.

As Central News Agency notes, TSMC has exclusively manufactured Apple’s chips in recent years, thanks to its lead in process technology. The report adds that its advanced nodes are progressing smoothly, with 2nm volume production set for the second half of this year. As a result, TSMC’s market share continues to grow, widening its lead over Samsung. According to TrendForce, TSMC held 67.6% of the foundry market in Q1 2025, while Samsung accounted for approximately 7.7%.

Source: TrendForce, Taiwan.