Key Highlights
- Samsung revealed plans to start volume manufacturing of Tesla’s advanced AI6 processors at its Texas facility during the latter half of 2027
- The disclosure came from Samsung’s Foundry division leader during a Wednesday shareholder event
- This manufacturing commitment follows a substantial $16.5 billion multi-year agreement inked with Tesla in July of the previous year
- Samsung entered a memorandum of understanding with AMD to deliver HBM4 memory modules for AMD’s upcoming MI455X AI accelerator chips
- Shares of Samsung Electronics climbed 7.5% on the Seoul exchange, surpassing the Kospi benchmark’s 5% advance
Han Jin-man, Samsung Electronics President and Head of the Foundry Business, delivered two significant announcements to shareholders Wednesday that sparked enthusiastic market response.
Shares of Samsung surged 7.5% on the Seoul exchange. With the broader Kospi benchmark advancing 5% during the same trading session, Samsung’s performance significantly exceeded the overall market momentum driven by these strategic revelations.
Han disclosed that Samsung’s Taylor manufacturing facility located in Texas is set to commence high-volume production of Tesla’s next-generation artificial intelligence processor in the second half of 2027. He characterized the Tesla partnership — which encompasses autonomous vehicle technology and robotics applications — as “a great opportunity” for the company’s contract manufacturing division.
“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 said.
The processor being manufactured is Tesla’s AI6 chip. Elon Musk previously validated on X that Samsung’s Taylor operations would be responsible for producing this advanced semiconductor.
This production schedule stems from a $16.5 billion multi-year arrangement the companies finalized in July 2024. This contract represented a significant achievement for Samsung’s foundry division, which continues efforts to narrow the competitive distance with industry leader TSMC.
Strategic AMD Collaboration
Along with the Tesla announcement, Samsung utilized the shareholder gathering to reveal a distinct memorandum of understanding with Advanced Micro Devices.
Through this MOU, Samsung commits to providing HBM4 — high-bandwidth memory technology — for AMD’s forthcoming Instinct MI455X AI acceleration processors. The MI455X graphics processing unit represents a cornerstone of AMD’s Helios rack-scale platform designed for artificial intelligence infrastructure deployment.
The partnership also encompasses potential delivery of advanced memory solutions for AMD’s sixth-generation EPYC server processors.
Beyond the memory supply agreement, both organizations explored opportunities for a foundry collaboration. This arrangement would position Samsung as a contract manufacturing provider for upcoming AMD product lines, though no definitive agreement on manufacturing services has been finalized.
Market Performance
AMD stock declined 0.14% during the trading day. Tesla shares increased 0.94%.
Samsung’s 7.5% rally in Seoul represented the most notable movement. The stock’s appreciation occurred during a session when South Korean equities broadly advanced, yet Samsung’s performance was particularly striking.
Han’s statements were unambiguous: Samsung anticipates its foundry operations achieving meaningful progress through the Tesla collaboration. The Taylor manufacturing site, which has encountered operational difficulties in previous periods, now assumes a critical role in executing one of the semiconductor industry’s most closely monitored production agreements.
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