Tesla has made a $16.5 billion chip deal with Samsung. Analyst Ming-Chi Kuo says this will change how Tesla works with chips and could shift how the chip market works. Tesla will now get hands-on experience making advanced chips with a major foundry besides TSMC.
Samsung will use its Texas plant to make Tesla’s new AI6 chips. These will go into things like the Cybercab shuttle and the Optimus robot. Tesla already uses TSMC for its AI5 chip. Now, by working with Samsung, Tesla will learn more about making chips, from design to volume production. This might help Tesla move faster with new chips in the future.
Elon Musk posted online that he will help speed up work at Samsung’s Texas site himself.
Samsung’s chip process (called 2 nm SF2) isn’t as efficient as TSMC’s yet, but Tesla thinks the learning is worth it. Tesla will use this experience to get even better at making their own chips.
Risks and safety nets
Kuo says Samsung’s SF2 process can be tricky. The chip yields aren’t as high as TSMC’s 2 nm node right now. Two things help with this risk. First, Samsung uses gate-all-around technology in the next version (SF3), which should make things smoother. Second, Tesla can move chip orders back to TSMC if things go wrong with Samsung. That could cause delays, but Tesla will keep what it learns.
This deal gives Samsung a chance to win back business in big volume foundry work from TSMC. If this goes well, Samsung can prove it can handle large customers like Tesla. Samsung could also learn to work more closely with clients on chip technology in the future.
Industry impact
If Tesla and Samsung work well together, this could give Tesla a better shot at making its own chips for projects like self-driving cars and robots. Samsung’s process is not as mature as TSMC’s, but Tesla will learn new skills. If Tesla isn’t happy with Samsung, it can return to TSMC. That keeps things on track. Either way, Tesla gains know-how.
This deal means Tesla will do more of its own semiconductor research and development. It’s a challenge for TSMC, who has been the main player in leading-edge foundry work. This could change the balance in the chip industry.
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