Samsung Foundry receives major order from Tesla, shifts focus from 1.4 nm chips

Samsung Foundry, known for its ambitious plans in chip manufacturing, has received a significant order from Tesla, leading to a shift in its long-term strategy. The company has decided to pause its work on developing 1.4 nm chips in order to focus on fulfilling the orders from Tesla for their Dojo chips. This move marks a strategic decision by Samsung to prioritize immediate business opportunities over long-term ambitions.

Samsung’s ambitions for 1.4 nm chips

Initially aiming to launch 1.4 nm chips by 2027, Samsung Foundry has now put these plans on hold. The company will now concentrate on perfecting its 2 nm chip manufacturing process for upcoming products like the Exynos 2600 processor. This decision comes after successfully stabilizing the 3 nm process, which will be featured in the Galaxy Z Flip 7.

Samsung manufacturing Tesla’s Dojo chips

Despite facing competition from other manufacturers like TSMC, Samsung has secured a deal with Tesla to manufacture their Dojo chips. This partnership highlights Samsung's technological capabilities and cost-efficiency, making it a preferred choice for Tesla. The company is gearing up to resume operations at its plant in Taylor, Texas, to meet the demand for Dojo chips, emphasizing the importance of improving its 2 nm yields.

Samsung is okay, for now

While Samsung may have put its 1.4 nm chip plans on hold, the company remains optimistic about its future in chip manufacturing. By focusing on refining its 2 nm process and meeting orders from Tesla, Samsung is poised to maintain its competitiveness in the market. With continued advancements in chip technology, Samsung aims to deliver high-performance Exynos chips that can rival competitors like Qualcomm's Snapdragon.