The chips will be designed for AI data centers, autonomous driving and robots. Shares in the South Korean tech giant surged.

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

Musk noted Tesla is working with TSMC to make AI5 chips, which just finished the design. The A15, a generation that is primarily built for FSD. will initially be made in TSMC’s Taiwan factory and then at its Arizona facility. Samsung already makes the A14 chip, according to Musk.