Tesla AI5 chip to utilize half-reticle design to improve manufacturing yield
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Tesla AI5 chip to utilize half-reticle design to improve manufacturing yield

Thursday, March 19, 2026 at 02:04 AM

Tesla is reportedly adopting a half-reticle design for its next-generation AI5 chip. This design choice aims to optimize manufacturing yields by limiting the chip's physical size relative to the maximum imaging area of a lithography machine's reticle. Reducing the die size helps mitigate the risk of defects during the fabrication process, which is essential for scaling up the production of high-performance AI inference and training hardware.

Context

On March 19, 2026, Tesla confirmed that its upcoming AI5 chip will utilize a half-reticle design, a strategic move to optimize manufacturing yield and cost-efficiency. By occupying only half of the maximum imaging area of a lithography machine, Tesla can effectively fit two chips per exposure shot, potentially doubling the output per wafer compared to the "full reticle" designs used by competitors like Nvidia and AMD. This architecture is specifically optimized for edge compute in the Optimus robot and the Robotaxi fleet, rather than general-purpose data center use. While Tesla currently relies on AI4 hardware, the AI5 is scheduled for limited production in 2026 with high-volume manufacturing expected in 2027. The chips will be produced at U.S.-based facilities by both TSMC and Samsung following a significant $16.5 billion supply deal. This development coincides with the launch of Tesla’s Terafab project, a dedicated AI chip manufacturing initiative aimed at securing the supply chain for the company’s autonomous driving ambitions through the end of the decade.

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