Samsung Electronics has begun trial production of Tesla’s next-generation AI5 chips at its Taylor, Texas, foundry, bringing forward the facility’s ramp-up as demand for advanced AI semiconductors rises. The plant has started producing 2-nanometer wafers and plans to complete mass-production verification by year-end before beginning full-scale supplies next year. Samsung signed a $16.5 billion semiconductor supply contract with Tesla last year, valued at about 22 trillion won in the latest account. AI5 chips are intended for Tesla’s Model 3 and Model Y electric vehicles, Cybercab robotaxi, Optimus humanoid robot and AI data centers. Samsung accelerated Taylor’s development after its 2- to 4-nanometer lines in Hwaseong and Pyeongtaek reached capacity. The company is also preparing a second Taylor fab, targeting groundbreaking by year-end and possible operations around 2030 with 1.4-nanometer technology. Samsung held 5.9% of the global foundry market in the second quarter, compared with 5.4% for SMIC, while constrained advanced-node capacity at TSMC could create an opening for Samsung to win customers. The Taylor ramp-up will test Samsung’s 2-nanometer manufacturing stability and could help its foundry division move toward profitability.