Key Highlights
- Samsung will commence large-scale production of Tesla’s AI6 chips at its Taylor, Texas facility during the latter half of 2027
- Han Jin-man, Samsung’s Foundry head, disclosed the information during a shareholders’ meeting held on Wednesday
- The manufacturing commitment follows a $16.5 billion multi-year agreement Samsung entered with Tesla in July of the previous year
- Samsung reached a memorandum of understanding with AMD to provide HBM4 memory for AMD’s upcoming MI455X AI accelerators
- Samsung Electronics shares climbed 7.5% in Seoul trading, surpassing the Kospi index’s 5% advance
Han Jin-man, President and Head of Samsung’s Foundry Business, delivered remarks to shareholders on Wednesday that generated significant market enthusiasm through two major announcements.
Samsung shares advanced 7.5% in Seoul trading sessions. During the same trading period, the broader Kospi index registered a 5% gain, demonstrating that Samsung exceeded general market performance driven by these strategic disclosures.
Han provided confirmation that Samsung’s Taylor manufacturing facility in Texas would initiate volume production for Tesla’s upcoming AI chip generation during the second half of 2027. He characterized the Tesla partnership — which encompasses autonomous driving technology and robotics applications — as representing significant potential for the foundry division.
“Mass production of the next-generation Tesla chip will commence at our Taylor fabrication facility in the United States during the second half of next year, with design and manufacturing processes advancing according to plan,” Han stated.
The processor referenced is Tesla’s AI6 chip. Elon Musk verified through X in the prior year that Samsung’s Taylor operations would manage its production.
This manufacturing schedule stems from a $16.5 billion multi-year agreement the companies finalized in July 2024. The contract represented a substantial achievement for Samsung’s foundry division, which continues efforts to narrow the competitive distance with industry leader TSMC.
AMD Collaboration Details
In addition to the Tesla announcement, Samsung utilized the shareholders’ gathering to unveil a distinct memorandum of understanding with Advanced Micro Devices.
The MOU establishes Samsung as a supplier of HBM4 — high-bandwidth memory technology — designated for AMD’s forthcoming Instinct MI455X AI accelerators. AMD positions the MI455X GPU as a cornerstone component within its Helios rack-scale architecture designed for AI infrastructure deployment.
The partnership framework extends to potential memory supply arrangements for AMD’s sixth-generation EPYC processor lineup.
Beyond the memory supply commitment, both companies explored possibilities for a foundry collaboration. Such an arrangement would position Samsung as a contract manufacturing provider for upcoming AMD product lines, though concrete agreements on manufacturing services remain unfinalized.
Market Performance
AMD stock declined 0.14% during the trading session. Tesla shares increased 0.94%.
Samsung’s 7.5% surge in Seoul represented the dominant headline figure. The equity’s movement occurred during a session when South Korean markets broadly advanced, though Samsung’s performance exceeded the general trend.
Han delivered straightforward messaging: Samsung anticipates foundry business advancement through the Tesla engagement. The Taylor manufacturing site, which experienced operational difficulties in previous periods, now assumes a central role in one of the semiconductor industry’s most closely monitored production agreements.
