Seoul: Samsung Electronics Co. has begun preparations to manufacture Tesla's next-generation artificial intelligence (AI) chip, known as the AI5, according to industry sources Monday. The move signifies a significant step in the collaboration between the two tech giants, focusing on advancing Tesla's technological capabilities in autonomous driving and AI applications.

According to Yonhap News Agency, the recent developments were hinted at in a LinkedIn post by a Samsung executive. The post revealed that Tesla's AI5 chip had completed its tape-out process, which signifies the completion of the chip's final design phase before entering mass production. Tape-out is a critical stage in semiconductor design, where a fabless chip designer hands over a completed chip design to a foundry for production.

The AI5 chip is a custom-designed component by Tesla, intended to enhance the performance of the company's Full Self-Driving (FSD) system, Optimus humanoid robots, and AI data centers. The chip will be manufactured using Samsung's advanced 2-nanometer process at its U.S. plant located in Taylor, Texas. This new manufacturing process is expected to deliver significant improvements in efficiency and performance for Tesla's next-generation products.

The disclosure of the AI5 chip's production timeline marks the first time such detailed information has been made public regarding Samsung's role in producing Tesla's new chip. The Taylor foundry is anticipated to commence initial operations later this year, with plans to start mass production for major customers, including Tesla, by 2027. This collaboration highlights the strategic partnership between Samsung and Tesla in pushing the boundaries of AI and autonomous technology.