Push to make Tesla chips sees Samsung's Texas fab begin production early

Samsung Electronics inked a $16.5 billion deal with Tesla to produce the carmaker's next-generation AI chips at its fabrication plant in Taylor, Texas.

Earlier reports had suggested that the factory would be operationalized by November but it appears that Samsung has begun operations ahead of schedule.

Samsung conducted the equipment move-in ceremony at the site back in April this year. The tape-out was completed in July, which is a process where chip design is handed over to actual wafer fabrication.

Prototype production and verification typically follows the tape-out. Korean media is reporting that Samsung has pulled the mass production schedule forward to keep up with surging AI chip orders.

Its foundry lines at the main Hwaseong and Pyeongtaek factories in South Korea are already running at fully capacity. If Samsung wants to meet the current demand for 2 to 4nm chipmaking, it needs to accelerate the production schedule at Taylor.

The need to get the ball rolling on Tesla's next-generation AI5 chip is said to be one of the reasons for production beginning ahead of schedule. The report mentions that the utilization rate at Samsung's Taylor plant is currently around 30% and is climbing quickly. Some industry analysts believe that the utilization rate could be ramped up to the effective full utilization of 100% by the end of this year.