Musk says Samsung is taking bigger role in making Tesla chips

Core Insights - Tesla is increasing its collaboration with Samsung Electronics for chip manufacturing, indicating Samsung's growing presence in a market traditionally dominated by TSMC [1][2] - The AI5 chip, which is currently in development, will be produced by both TSMC and Samsung, contrary to earlier statements that it would solely be produced by TSMC [2] - The AI5 chip is designed for efficiency, omitting conventional image signal processing, and is crucial for Tesla's self-driving technology and robotics [3] Company Developments - Tesla has confirmed that Samsung will also produce the next-generation AI6 chip, following a significant $16.5 billion agreement, marking a notable achievement for Samsung's foundry business [4] - Samsung is currently manufacturing the prior-generation AI4 chip for Tesla, while TSMC is responsible for the ongoing version [4] Industry Context - Samsung, while still trailing TSMC in the foundry sector, is increasing its investments in a production facility near Austin, Texas, where Tesla is headquartered [5]