Samsung to manufacture Tesla's AI chips, partners with Apple
Samsung's chip-making business is getting a major boost, thanks to fresh deals with Tesla and Apple.
Samsung is set to manufacture Tesla's new AI5 chips at its Texas plant (alongside TSMC in Arizona), a move Tesla revealed during a recent third-quarter earnings call.
This approach helps Tesla keep its cars and data centers running smoothly.
Samsung's foundry division is bouncing back
Samsung isn't stopping with Tesla—they're also teaming up with Apple to build advanced image sensors in Austin, aiming to make iPhones more power-efficient.
Plus, Samsung is making chips for the recently launched Nintendo Switch 2.
These partnerships are helping Samsung bounce back from big losses (about $1.5 billion) in their foundry division.
The goal? Get back to profits by late 2027, right when production of Tesla's next-gen AI6 chips is set to begin.