[News] Korean Chip Engineer Accuses Tesla of Pressuring Samsung on AI5/AI6 Pricing, Poaching Talent for Terafab

A South Korean semiconductor engineer has accused Tesla of imposing unfair contract terms on Samsung and Elon Musk’s Terafab project of poaching talent from the chipmaker’s Texas facility. According to Wccftech, the engineer, who uses the X handle @TTHUEONE, claimed that Tesla demanded access to Samsung’s internal fab information and audit rights for its AI5 and AI6 chip contracts while aggressively pushing down foundry prices. The engineer also alleged that Terafab had poached numerous employees from Samsung’s Taylor fab in Texas and that Tesla turned to Samsung Foundry for its AI5 and AI6 chips because TSMC wouldn’t meet its demands.

The accusations followed Musk’s recent comments on memory chip pricing. Earlier this week, Musk praised Micron, saying the company “has been reasonable regarding future memory prices, while others have been extortionate,” in remarks widely interpreted as criticism of Samsung, Wccftech notes.

Terafab Raises Talent and Technology Concerns for Samsung

The allegations echo concerns raised in March by South Korean outlet Business Post, which warned that Terafab could intensify competition with Samsung for semiconductor talent and equipment. With its planned site just a 30-minute drive from Samsung’s Taylor foundry, Terafab could tap into the same regional workforce and supplier network, the report noted. Tesla had already begun recruiting semiconductor development engineers for the project.

More recently, Financial News reported on October 12 that Samsung has begun deploying advanced-node yield engineers from South Korea to its Taylor facility while expanding local recruitment ahead of planned 2nm mass production in 2027. The company aims to begin operating the fab by the end of 2026, with Tesla among its key customers. Separately, Seoul Economic Daily reported in September that Samsung had begun trial production of Tesla’s AI5 chips at the facility, with yield verification underway ahead of full-scale production in 2027.

Business Post also flagged potential risks to Samsung’s intellectual property and manufacturing know-how. The report highlighted Musk’s direct involvement in AI6 chip production, including plans for a private office at Samsung’s Taylor facility, suggesting that such access could provide insights into Samsung’s 2nm operations that might benefit Terafab’s development.

Tesla Orders and TSMC’s Potential Role in Terafab

Tesla remains a key customer for Samsung’s foundry business. According to an earlier report by South Korea’s AsiaToday, Tesla’s AI5 and AI6 chip orders are expected to support initial capacity utilization at Samsung’s Taylor fab. The report also noted that TSMC’s potential involvement in Terafab could complicate Samsung’s efforts to secure future chip orders.

Meanwhile, TSMC Chairman C.C. Wei confirmed that the company is in discussions over Terafab, though the outcome remains uncertain. He emphasized that any fab involving TSMC would have to be operated by the company itself. This contrasts with Musk’s position on October 7, when he said his companies would build and operate Terafab, with TSMC potentially subleasing part of the facility rather than taking an operational role, according to Reuters.

Read more

• [News] Musk Weighs In on Memory: Praises Micron’s Future Pricing, Slams “Extortionate” Practices
• [News] TSMC Sends Team to Assess Texas Fab Expansion, Confirms Terafab Talks but Insists on Operating Control

(Photo credit: Elon Musk on X)