Samsung Set for AI6 Chip Revenue Surge as Tesla Secures Wafers

Key Takeaways

1. Tesla plans to invest $20 billion in 2026 to stay competitive in electric vehicles, robotics, and energy storage, doubling its usual spending.
2. A significant portion of this investment will go to Samsung, with Tesla potentially paying $5 billion annually for custom chips and 5G modems.
3. Tesla’s contract with Samsung covers 16,000 wafers monthly, but it seeks to increase this to 40,000 wafers due to rising production needs.
4. The new AI6 chips will use Samsung’s 2nm technology, but they won’t be ready for Tesla vehicles or robots until 2028.
5. There is uncertainty about Samsung’s ability to meet Tesla’s wafer demands and the pricing, amid high demand for AI chips affecting market dynamics.

Faced with increasing costs of parts like AI chips and batteries, Tesla announced its largest ever capital expenditure figure during the most recent quarterly earnings call.

Major Investment in 2026

The company plans to invest $20 billion just to remain competitive in the electric vehicle, robotics, and energy storage markets in 2026, which is double its usual spending. A significant portion of this funding will go toward Samsung.

Reports indicate that Tesla is seeking to secure more AI6 wafers from its Texas facility and may pay Samsung as much as $5 billion each year for chips and 5G modems that are specifically designed for Tesla’s products.

Expanding Production Capacity

Last year’s contract with Samsung for its foundry is worth around $2 billion annually, covering 16,000 wafers each month. However, Tesla believes it will require 40,000 wafers, leading to current discussions with Samsung to obtain the extra capacity.

Tesla’s AI6 silicon is set to be produced using Samsung’s cutting-edge 2nm technology, and the chip manufacturer has also created a 5G modem for Tesla, which is expected to be available later this year. For reference, the current AI4 chip used in the 2026 Model Y is made with a 5nm process. However, the AI6 processor is not anticipated to be integrated into Tesla vehicles or robots until 2028, and Samsung may not be prepared with its Taylor fab in Texas this year as initially scheduled.

Uncertain Future

It is still unclear whether Samsung will be able to fulfill Tesla’s request and what the pricing will be. Notably, the company has been able to charge Nvidia double for its upcoming HBM4 memory due to the surge in demand for AI chips, which has driven its stock price to unprecedented levels.

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