Samsung Electronics has initiated preparations to manufacture Tesla's next-generation artificial intelligence processor, designated as the AI5, according to industry sources cited by Yonhap.

The development marks a significant potential shift in the advanced semiconductor supply chain.

Tesla has historically relied heavily on TSMC for its custom silicon, including the current-generation AI chips powering its data centers and autonomous driving efforts.

A move to Samsung would diversify Tesla's supplier base and provide a high-profile reference design for Samsung's advanced process nodes.

This news arrives as Samsung seeks to close the technology gap with TSMC in the sub-3nm space.

The South Korean chipmaker has been aggressively investing in new fabrication capacity, recently announcing plans alongside SK Hynix to build new plants for AI chip production.