Key Highlights
- Samsung announced mass production of Tesla’s AI6 chips will commence at its Texas facility in late 2027
- The company’s Foundry division leader revealed the details during Wednesday’s shareholder gathering
- This production initiative follows a multiyear $16.5 billion agreement established with Tesla in July 2024
- Samsung reached a memorandum of understanding with AMD for HBM4 memory delivery to power AMD’s upcoming MI455X AI processors
- Shares of Samsung Electronics climbed 7.5% in Seoul trading, surpassing the Kospi’s 5% advance
Han Jin-man, President and Head of Foundry Business at Samsung Electronics, delivered two significant announcements to shareholders Wednesday that triggered strong market enthusiasm.
Shares of Samsung surged 7.5% during Seoul trading. While the broader Kospi benchmark climbed 5% that session, Samsung’s performance exceeded the overall market thanks to these strategic announcements.
Han revealed that the Taylor manufacturing facility in Texas will initiate high-volume production of Tesla’s next-generation artificial intelligence chip during the latter half of 2027. He characterized the Tesla partnership — which encompasses autonomous vehicle technology and robotics applications — as “a great opportunity” for Samsung’s foundry operations.
“The next-generation Tesla chip is scheduled for mass production at the Taylor fabrication plant in the U.S. in the second half of next year, with both its design and manufacturing progressing smoothly,” Han stated.
The semiconductor in development is Tesla’s AI6 processor. Elon Musk verified via X last year that Samsung’s Taylor manufacturing complex would manage its production.
This production schedule originates from a $16.5 billion multiyear agreement both companies executed in July 2024. The contract represented a significant victory for Samsung’s foundry division, which continues efforts to narrow the competitive gap with industry leader TSMC.
AMD Collaboration
In addition to the Tesla announcement, Samsung utilized the shareholders’ meeting to reveal a separate memorandum of understanding with Advanced Micro Devices.
The MOU establishes Samsung as a supplier of HBM4 — high-bandwidth memory technology — for AMD’s forthcoming Instinct MI455X AI accelerators. AMD’s MI455X GPU serves as a critical component within its Helios rack-scale platform designed for AI infrastructure applications.
The partnership also encompasses possible supply of cutting-edge memory solutions for AMD’s sixth-generation EPYC server processors.
Beyond the memory supply arrangement, both organizations explored a potential foundry collaboration. Such an agreement would position Samsung as a contract manufacturing partner for upcoming AMD products, although no definitive foundry deal has been finalized.
Market Performance
AMD stock declined 0.14% during the trading session. Tesla shares increased 0.94%.
Samsung’s 7.5% rally in Seoul represented the dominant story. This stock movement occurred during a session when South Korea’s broader market already posted gains, yet Samsung’s advance proved particularly notable.
Han’s remarks were straightforward: Samsung anticipates its foundry business advancing significantly through the Tesla collaboration. The Taylor facility, which previously encountered production obstacles, now stands positioned as a central location for executing one of the semiconductor industry’s most closely monitored manufacturing contracts.
