If Musk is set on moving chip production to the U.S., then the Samsung factory may hold other advantages over Taiwan Semi. Samsung is bringing its most advanced manufacturing to Texas, while Taiwan Semi’s factory in Arizona uses its previous generation, and that may mean Taiwan Semi’s technical advantage is erased in U.S. production.

Tesla is set to get its next generation of semiconductor chips from South Korean electronics giant Samsung in a new deal worth more than $16 billion over the next eight years.