Samsung will be a joint manufacturer of Tesla's AI5 chip.

Samsung to Manufacture Tesla's AI5 Chip

Elon Musk, Tesla's CEO, announced that the company is collaborating with Samsung Electronics in the production of its next-generation artificial intelligence chip, AI5. This partnership is seen as a significant achievement for Samsung in the competition with Taiwan Semiconductor Manufacturing Company (TSMC).

Musk's Announcement: Joint Production of AI5

During Tesla's third-quarter investor conference, Musk corrected previous statements indicating that TSMC would be the sole manufacturer of AI5. The AI5 chips are designed to power Tesla's autonomous driving technologies and the developing series of robots. These chips will be used alongside Nvidia (NVDA) processors.

Samsung's Strong Moves and Market Position

In July, Musk announced that they had made an agreement confirming Samsung's involvement in upcoming projects. Taking a significant step in the production of artificial intelligence chips, Samsung had also previously undertaken the production of the AI4 chip. Now, with the production of AI5, these two major technology firms are coming together.

Austin Investment and Future Expectations

The South Korean company plans to make significant investments in a new manufacturing facility near Austin, Texas, where Tesla's headquarters is located. Samsung's earnings in the last quarter could rise significantly due to the increasing demand for artificial intelligence hardware. The prepared HBM (High Bandwidth Memory) chips play a crucial role in this process.

Market Analyses and Success Factors

Analysts from CLSA Securities Korea and Counterpoint are determining how Samsung's increasing HBM shipments, combined with strong demand from general-purpose servers for artificial intelligence, are influencing the prices of standard memory chips. This trend is boosting the company’s future growth opportunities.

Innovative HBM Chips and Approval Process

Finally, Samsung's latest HBM chips receiving approval for use in Nvidia's advanced artificial intelligence systems is a significant victory for the company. This situation is among effective steps that will solidify Samsung's position in the market.