Samsung’s Texas Fab To Build Tesla’s Next-Gen AI Chips In ‘Made-in-USA’ Push

Tesla’s next-generation AI6 chip, designed to power the Full Self-Driving (FSD) system, will be manufactured at Samsung’s new, massive chip fabrication plant in Texas, strategically located near Tesla’s Model Y and Cybertruck production facilities. 

“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate,” Elon Musk wrote on X late Sunday night. 

Musk continued, “Samsung currently makes AI4. TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.” 

“Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency,” he noted, adding, “This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house.”

Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency.

This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house 😃

— Elon Musk (@elonmusk) July 28, 2025

Samsung confirmed that it will produce Tesla’s AI chips as part of a $16.5 billion chipmaking deal, marking a major win for its underperforming foundry division, according to Bloomberg. 

The AI6 chip will be produced at Samsung’s chip plant in Taylor, Texas. The new facility was partially funded through the Biden-Harris administration’s CHIPS and Science Act and is focused on manufacturing advanced logic chips for mobile devices, 5G, high-performance computing, and AI applications.

Tesla aims to produce more of its AI chips in the U.S., and the new deal with Samsung strongly reinforces this shift, prioritizing proximity to vehicle manufacturing, supply chain resilience, national security, and Musk’s direct oversight. 

This all marks a win for American innovation and manufacturing, while legacy automakers continue to rely heavily on chips and other parts sourced from overseas markets, particularly East Asia.