Samsung Electronics Soars 7.5% Following Tesla AI Chip Agreement and AMD Memory Partnership

TLDR

Table of Contents

Samsung revealed plans to start volume manufacturing of Tesla’s AI6 chips at its Texas-based Taylor facility starting in late 2027
The disclosure came from Samsung’s Foundry Business head during a Wednesday shareholders’ meeting
Manufacturing plans follow a $16.5 billion multi-year agreement between Samsung and Tesla signed in July 2024
Samsung announced a memorandum of understanding with AMD for HBM4 memory supply targeting AMD’s MI455X AI accelerator chips
Shares of Samsung Electronics climbed 7.5% in Seoul trading, exceeding the Kospi index’s 5% gain

Han Jin-man, Samsung Electronics President and Foundry Business Head, delivered two strategic announcements during Wednesday’s shareholder gathering that triggered significant investor enthusiasm.

Samsung SDI Co., Ltd., 0L2T.L

Shares of Samsung Electronics climbed 7.5% during Seoul trading. With the broader Kospi index advancing 5% during the same session, Samsung’s performance notably exceeded overall market momentum driven by these strategic revelations.

Han provided confirmation that Samsung’s Taylor manufacturing facility located in Texas will commence high-volume production of Tesla’s advanced AI chip during the latter half of 2027. He characterized the Tesla partnership — which encompasses autonomous vehicle technology and robotics applications — as representing “a great opportunity” for Samsung’s foundry operations.

“The next-generation Tesla chip is scheduled for mass production at the Taylor fabrication plant in the U.S. in the second half of next year, with both its design and manufacturing progressing smoothly,” Han said.

The semiconductor under development is Tesla’s AI6 processor. Elon Musk previously confirmed via X that Samsung’s Taylor operations would manage its fabrication.

This manufacturing schedule originates from a $16.5 billion multi-year agreement the companies executed in July 2024. This contract represented a significant victory for Samsung’s foundry division, which continues efforts to narrow its competitive distance from industry leader TSMC.

AMD Partnership

Beyond the Tesla arrangement, Samsung utilized the shareholders’ meeting to reveal a separate memorandum of understanding with Advanced Micro Devices.

The MOU establishes Samsung as the supplier of HBM4 — representing high-bandwidth memory technology — designated for AMD’s upcoming Instinct MI455X AI accelerator processors. AMD’s MI455X GPU serves as a foundational component within the company’s Helios rack-scale architecture designed for AI computing infrastructure.

The partnership framework additionally encompasses possible supply arrangements for advanced memory solutions supporting AMD’s sixth-generation EPYC server processors.

Complementing the memory supply agreement, both companies engaged in discussions regarding a possible foundry collaboration. Such an arrangement would position Samsung as a contract manufacturing provider for upcoming AMD chip designs, although no definitive agreement on manufacturing services has been finalized.

Stock Move

AMD stock declined 0.14% during trading. Tesla shares increased 0.94%.

Samsung’s 7.5% appreciation in Seoul represented the primary market story. The equity’s movement occurred during a session when Korean markets broadly advanced, yet Samsung’s appreciation remained distinctly pronounced.

Han’s messaging was unambiguous: Samsung anticipates its foundry operations advancing meaningfully through the Tesla manufacturing relationship. The Taylor facility, which experienced production difficulties in previous years, now assumes a pivotal role in executing one of the semiconductor industry’s most closely monitored manufacturing contracts.

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