Samsung starts trial 2nm chip production at Taylor fab for Tesla AI5

September 18, 2026 at 10:55 AM2 min

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Samsung Electronics has begun trial production of 2-nanometer AI5 chips for Tesla at its Taylor, Texas fab, ahead of the original schedule. The company aims to complete process verification by the end of 2026 and start full-scale production next year. The accelerated ramp-up comes as Samsung's South Korean contract manufacturing lines are fully loaded.

Key Facts

Samsung and Tesla signed a $16.5 billion agreement last year covering contract chip production at Samsung's US facilities.
The Taylor fab will produce Tesla's AI5 chip using 2nm process technology, with full-scale production expected in 2027.
Samsung plans to begin construction of a second Taylor fab by the end of 2026, targeting 1.4nm chips and completion by 2030.
Samsung's contract manufacturing revenue gap with SMIC narrowed to 0.5% in Q2 2026, according to TrendForce.

Taylor Fab Ramp-Up

Samsung Electronics has started trial production of 2nm AI5 chips for Tesla at its Taylor, Texas facility, ahead of the original November schedule. The company held a tool-in ceremony at the Taylor fab in April 2026 and was ready to work with digital chip designs by mid-July. Process verification at the new site is expected to be completed by the end of 2026, enabling full-scale customer production starting next year. Tesla will begin receiving volume shipments of the AI5 chips from the Taylor fab in 2027.

Tesla Contract and AI5

Tesla and Samsung signed a $16.5 billion agreement in 2025 for contract chip production at Samsung's US facilities. The AI5 chip will be the primary product manufactured for Tesla at the Taylor fab. Tesla plans to use the AI5 chip in electric vehicle onboard systems, Optimus humanoid robots, and its data centers.

Competitive Position

Samsung's US fabs in Texas will help the company widen its lead over Chinese contract chipmaker SMIC. In Q2 2026, the revenue gap between Samsung and SMIC in contract chip manufacturing was 0.5%, according to TrendForce. Samsung plans to expand EUV lithography equipment deployment in South Korea, technology unavailable to SMIC due to US and Dutch sanctions. Faster expansion of Samsung's Texas fabs is expected to help the contract business reach breakeven sooner.