TSLA Stock is moving on the confirmation of Samsung Electronics that its Taylor, Texas, semiconductor factory will only reach true mass production in 2027. Meanwhile, Tesla, Inc. (TSLA) closed at $405.94, gaining $13.51 or 3.44% at 4:00 PM EST.
This delay disrupts Tesla’s plan to utilize advanced 2nm chips for its AI5 and AI6 platforms, as the 2027 timeline lags behind the automaker’s hardware roadmap.
In April, Samsung mentioned that it focused on commencing 2-nanometer mass semiconductor production in its fabrication business and gained key orders for the next-generation technology.
Tesla-Samsung Contract Timeline Extended
The mass production of semiconductor chips at the Taylor fab has been slowed down once more. Although the plant has initiated confined pilot operations, full-scale production is still undetermined, according to multiple sources cited by Korea JoongAng Daily.
The schedule has continued to be delayed, and it is now anticipated that a full-scale ramp-up for meaningful production volumes could be pushed to early next year, according to a source familiar with developments, the publication was told.
According to the X (formerly Twitter) post by Elon Musk, CEO of Tesla, Samsung Electronics has signed a long-term contract valued at approximately $17 billion for supplying semiconductor chips to Tesla, as confirmed in a regulatory filing by Tesla and the South Korean Organization.
A memory chipmaker disclosed in a regulatory filing that it has a long-term contract with an unnamed firm.
According to the agreement, the effective start date of the contract is July 26, 2026, which is also when the chipmaker will begin receiving orders, and the contract is set to operate via 2033 December 31. This contract demonstrates the timeline for the supply obligation of the chipmaker over the next multiple years.
The CEO of Tesla further said that Samsung has agreed to support Tesla in enhancing manufacturing efficiency. He also added that this is a crucial step, and he will move the timeline personally to boost the pace of progress.
Fab Operations Continue Amid Delays
According to the filing in Korea, Samsung will not reportedly disclose the details of the unnamed company involved in the agreement or other contract-related data until 2033, as the other firm has requested protection of its trade secrets. In trading on Monday, the shares of the company increased by over 6% to reach their greatest level since the market peak in late 2025.
According to the company, Investors are advised to invest their funds carefully, taking into account the potential termination of the contracts and possible changes, as significant details of the agreement have not been revealed to maintain business confidentiality.
Despite variations to the mass production schedule, operations are still ongoing at the Taylor site. Samsung has gained a temporary certificate of occupancy, which covers part of Fab 1 and is reportedly planning to start EUV (Extreme Ultraviolet) lithography tool testing as early as March.
With references to the production of semiconductor chips, Samsung told the newspaper that planning for the mass manufacturing is anticipated to be finalized by the end of 2026, adding that the plant should be fully efficient and operational by then.
