Elon Musk made important statements that cleared up uncertainties surrounding Tesla’s next-generation AI chips. Musk confirmed that they will work with two major factories to manufacture both AI5 and AI6 chips. These will be Samsung’s Taylor facility in Texas and TSMC’s factory in Arizona. This announcement came after Musk previously described Samsung’s facility as “technically superior.” Comments at the time had led to expectations that Tesla might turn to a single supplier for its most advanced chips.
Tesla’s dual supply strategy: Samsung and TSMC for AI5 and AI6 chips
According to Musk, both Samsung and TSMC will physically produce “slightly different” versions of the same design. This is due to the different manufacturing processes each company uses to convert designs into physical chip form. However, Elon Musk emphasized that these technical details will not impact the end-user experience. In his statement, he said, “Our software runs identically on both chips.” This dual-supplier strategy aims to reduce Tesla’s supply chain risks and achieve high-volume production.
Just as ambitious as Tesla’s new chip strategy is its performance targets. Musk claimed that the AI5 chip will deliver not just 40 percent, but 40 times the performance of the current AI4 (Hardware 4) platform. The specific metrics (e.g., processing power, throughput, or latency) underlying this massive increase have not yet been detailed. The AI6 chip, scheduled to follow shortly after the AI5, is expected to nearly double the performance of the AI5.
We’ll have to wait a bit to see these ambitious chips on the road. Elon Musk stated that the AI5 is still in development, with mass production planned for 2026. The AI6 chip is expected to enter production approximately a year later, likely in 2027 or early 2028, with a “fast-track” phase. These powerful chips will power not only Tesla’s Full Autonomous Driving (FSD) technology, but also the company’s humanoid robot platform and other systems that may be announced in the future.
Tesla’s dual sourcing strategy between Samsung and TSMC reflects the company’s massive production targets. This approach mitigates the risk of potential yield issues or capacity limits at a factory. It also gives Tesla significant bargaining power over pricing for high-volume AI chips. The company focuses on continuity of supply, not where the chips come from, as long as it doesn’t impact performance. So, what are your thoughts on Tesla’s dual chip production strategy?
