
Advanced chip manufacturing is a very costly but also very lucrative business, and for TSMC, business has been extremely good. However, that's not been the case for Samsung, the world's second-largest chip maker after TSMC, as it has been struggling to bring in new customers. There is some good news on that front, though, as Elon Musk has announced a deal with Samsung, in which it will manufacture the next generation of processors for Tesla cars at its US plant in Texas.
Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate.Samsung currently makes AI4. TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.July 28, 2025