Chips made at Taylor’s Samsung Austin Semiconductor plant could help drive Tesla electric vehicles made at the Austin Gigafactory, according to a recently published report.
Tesla vehicles already are shipped across the country from a rail yard next door to the Samsung Electronics Co. Ltd. foundry slated to open in Taylor next year. Also, the two manufacturing sites are only about 30 miles apart.
But the companies could soon have an even closer relationship if Tesla opts to use Samsung’s advanced semiconductors in new and updated models of its cars and trucks.
The two companies are in talks about Samsung supplying chips to the maker of the Tesla cars, the wedge-shaped Cybertruck, self-driving big rigs and the Robotaxi that has just been introduced to Austin streets, according to the Austin Business Journal.
Citing “several sources” that remained anonymous, the weekly publication reported the two companies have been in talks for months about having the Taylor-made semiconductors in Tesla products.
Samsung officials are staying mum.
In a written statement to the Press, a Samsung spokeswoman said, “We do not comment on speculation regarding customers. However, we are still planning to be operational by the end of 2026.”
Tesla officials did not respond to a request for comment.
Samsung recently renegotiated its tax-incentive deals with the Taylor City Council to reflect the late 2026 opening from the original 2024 plan to be operational.
Sources said the agreement with Tesla is not a done deal and market factors in both electric vehicle and semiconductor industries could mean a change in direction, according to ABJ.
It also is unclear if the Samsung chips would be used for Austin-built Tesla vehicles or if they would be used for other Tesla products.
Tesla currently uses Samsung technology in its home battery called Powerwall.
Daniel Zlatev, senior tech writer for the online publication NotebookCheck.net, reported last month that Tesla wants chips from TSMC, the Taiwanese-based semiconductor manufacturer that dominates the market.
However, the demand for the next-generation 2-nanometer and 3-nanometer chips could be great enough that Tesla also will need to rely on Samsung’s Taylor semiconductors for the faster computers it will install in newer Tesla models.
TSMC is investing about $100 billion in an Arizona advanced semiconductor foundry but has experienced delays. Samsung is putting about $18 billion into the first Taylor foundry and could eventually spend as much as $55 billion there and on an expansion of the Austin campus over the next two decades.
Citing South Korean industry insiders, NotebookCheck reports the chips would make the computers five times faster than what Tesla now uses in its Model Y car. Samsung is based in that Asian country.
If the deal goes through, it will make Tesla one of the biggest customers for TSMC’s chips from Arizona.
“Tesla is still keeping Samsung as an alternative foundry for its AI5 chip, though it will reportedly only resort to its production in 2026 when it starts shipping HW5 vehicles en masse,” according to NotebookCheck.
Business publication Nikkei Asia reported last week that Samsung is delaying an installation of equipment in the nearly complete structures at Taylor because they are still lining up customers.
“The process is delayed because there are no customers. (Samsung) is not in a situation where it can do something, even if it brings equipment in at the moment,” a source who asked to not be identified told Nikkei Asia.
