Samsung is positioning itself as a full-spectrum AI chip supplier, securing a €16.6 billion deal to manufacture Tesla’s next-generation AI6 chip at Samsung’s new Taylor, Texas, factory. ⁣Production is expected to begin in 2026, while the deal runs through the end of 2033.

The AI6 chip is designed for use in Tesla’s Full Self-Driving (FSD) systems, Optimus humanoid robots, and AI training infrastructure, including the Dojo supercomputers. The latter is Tesla’s custom-built supercomputer platform designed specifically for training AI models.

Walking the line himself

Elon Musk acknowledged the news, saying, “Samsung’s giant new Texas fab will be dedicated to making Tesla’s next‑generation AI6 chip.” He also emphasized that Tesla will help optimize operations. He added that Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency and that he will personally ‘walk the line’ to help.

The AI6 chip, developed by Tesla and to be manufactured by Samsung under their new $16.6 billion deal, is expected to dramatically outperform the current HW4 (also known as AI4) chip, made by Samsung, as well as the HW5 platforms.

HW5 refers to Tesla’s upcoming fifth-generation FSD computer in vehicles. While not yet officially released in most Tesla models as of mid-2025, HW5 is under development and is likely to enter early deployment or testing.

While this HW4 computer utilizes Samsung’s 5nm technology, HW5 is expected to employ 4nm or better technology. The nanometer (nm) number refers to the size of features on the chip—like the width of transistors or the distance between them. Smaller numbers mean smaller, more densely packed transistors.

Eliminating the dependency of Taiwan

Historically, Tesla’s HW3 (FSD Computer 3.0) chips were manufactured by Taiwanese TSMC, the world’s largest and most advanced semiconductor foundry.

Elon Musk’s shift from Taiwanese TSMC to local US production by Samsung appears to be based on a mix of strategic, technical, and logistical reasons.

Musk is concerned about the risk of disruption to the chip supply chain in the event of a conflict with China. “A single point of failure in Taiwan is unacceptable for Tesla’s AI roadmap,” Musk said earlier in strategic discussions.