Samsung Electronics (OTC:SSNLF) has announced plans to commence mass production of chips for Tesla Inc. (NASDAQ:TSLA) in the latter half of 2027.
The announcement was made by Han Jin-man, the President and Head of Foundry Business at Samsung Electronics, during a shareholders’ meeting. The chips will be produced at Samsung’s factory located in Texas, reported Reuters on Wednesday.
Earlier this month, Korean trade publication The Elec reported that changes to Samsung’s production schedule may delay mass production of a next-generation neural processing unit (NPU) by South Korean AI chip firm DeepX— an issue that is also affecting Tesla.
The multi-project wafer (MPW) run for DeepX’s second-generation NPU, the DX-M2, has reportedly been pushed back by about six months from its originally planned April timeline.
Tesla AI6 Chip Deal Faces Timing Concerns
In July, Tesla confirmed a $16.5 billion multiyear deal with Samsung to manufacture its next-generation AI6 chip in Texas. Analyst Ming-Chi Kuo hailed the strategic partnership as a “valuable opportunity” for Tesla to gain real-world foundry experience, something Taiwan Semiconductor Manufacturing Co (NYSE:TSM) would not have allowed.
Meanwhile, Gene Munster of Deepwater Management said Tesla’s AI6 chip will enable significantly more advanced autonomy across Robotaxi, FSD, and Optimus, noting that current chips may fall short of the company’s long-term AI ambitions.
However, Tesla’s CEO, Elon Musk, has expressed concerns over the pace of chip production. In November, Musk revealed that he was pressuring both TSMC and Samsung to speed up Tesla’s AI chip output, stating that “five years to me is an eternity.”
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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