Samsung Foundry snags $16.5 billion deal with Tesla for automotive chips

While Samsung Foundry has been struggling with its cutting-edge SF2 node lately, some of its older processes have received a fresh demand from the likes of Nintendo, which used its 8N node for the Nintendo Switch 2's Tegra T239 SoC. Now, it has received what could arguably be its largest order to date.

Reuters states Samsung Electronics, the parent company of Samsung Foundry, has signed a $16.5 billion deal with a "global firm". Tesla founder Elon Musk solves this mystery via a new X post that says, "Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip."

However, Tesla has likely chosen one of Samsung's older nodes for the A16 because Reuters states, "the order is unlikely to involve the cutting-edge tech." While the exact node isn't specified, it is likely 5 nm or 4 nm. A 2023 report implied that its yields were at 75%, making it ideal for high-volume orders.

On the other hand, X analyst Jukanlosreve and South Korean news outlet Chosun claim that the node in question is SF2A: Samsung's 2nm node, specifically designed for automotive parts. It isn't entirely implausible because the Returers report says, "until the contract is completed at the end of 2033," implying Samsung won't start working on the Tesla chips until much later.

At the time of writing, there are no public records of how Samsung's SF2A node is yielding. Its non-A variant, SF2, is said to be at around 40%, likely for the Exynos 2600, which might have a die size in the region of 150 mm². Tesla's A16 chip will undoubtedly be larger, but Samsung should have enough time to optimise its processes. Elon Musk says he will "walk the line personally to accelerate the pace of progress."