Samsung Foundry shifted the launch of its Taylor plant ahead of the planned November start to produce Tesla's next generation AI5 chips. The facility reached a 30% utilization rate this month, up from 20% last month, to address capacity shortages at its Hwaseong and Pyeongtaek campuses in Korea. Tesla utilizes the AI5 chip in Model 3 and Model Y vehicles, Cybercab robotaxis, Optimus humanoid robots, and AI data centers.

The company plans to break ground on a second Taylor facility by the end of the year, targeting 2030 for operations with a possible 1.4nm process. This expansion aims to capture AI chip volume from Taiwan's TSMC, whose advanced node capacity is mostly exhausted. Korean plants handle 2 to 4nm nodes at full capacity, while industry analysts forecast Taylor will reach 100% utilization by year end, accelerating the foundry division's return to profitability.