Samsung will produce Tesla’s next-gen AI chips at its semiconductor plant set to open next year northeast of Austin in Taylor.

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

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks in the Spotlight Today. On July 28, Tesla announced that it had signed a $16.5 billion deal to source chips from Samsung Electronics. While the move may boost Samsung’s unprofitable contract business,