South Korea’s Samsung Electronics secured a major win with Tesla’s order for next-gen AI chips using its 2nm process. This deal boosts hopes for a turnaround in Samsung’s chip business after ongoing struggles in recent quarters. The contract also shows that Samsung’s advanced production technology now meets industry demands.
The 2nm process success brings attention back to Samsung’s foundry division, long overshadowed by TSMC. Tesla’s order confirms that Samsung’s yield and process stability have improved. This is a huge step for the company’s future in AI chip production.
Earlier, Samsung faced setbacks with its 3nm process, which lacked customer interest due to low yield. Even its own mobile division rejected it for flagship Galaxy devices. These challenges hit the Device Solutions division hard and lowered profits significantly.
Now, the Tesla AI chip contract changes the outlook. It validates Samsung’s efforts to recover through innovation and customer focus. This 2nm process success could attract more large clients seeking alternatives to TSMC.
Already, Samsung is testing its 2nm chips with Qualcomm and NVIDIA. These collaborations may result in more deals soon. The Tesla AI chip order may open the door to further growth with global tech leaders.
Meanwhile, Samsung continues to develop the Exynos 2600 using the same advanced node. This chip may appear in the next Galaxy S26. The foundry team is working hard to improve yields and meet internal demand.
The 2nm process success reflects Samsung’s dual-track strategy. It pushes both advanced technologies and profitable mature process development. This approach helps defend its position against China’s growing chip industry.
Market share remains a challenge. TSMC leads with over 60% of the global foundry market. Samsung follows with around 8%, slightly ahead of China’s SMIC.
To close the gap, Samsung is pushing forward with both AI chips and HBM memory. Its memory division is testing the sixth-generation HBM (HBM4) with NVIDIA. The base DRAM for HBM4 is also nearing mass production thanks to yield improvements.
Analysts believe the Tesla AI chip contract gives Samsung a critical edge. It proves the foundry’s readiness for advanced chip manufacturing. If deals with Qualcomm and internal divisions follow, momentum could grow even stronger.
In conclusion, Samsung also works to expand its HBM4 client base, including companies like Broadcom. These efforts may lead to a faster turnaround across the semiconductor division.
