Musk’s Tesla signs 16.5 billion chip deal with Samsung

Tesla Samsung chip deal handshake in fab plant

Tesla and Samsung have officially finalized a $16.5 billion, multi‑year chip supply agreement, confirming that Tesla is the previously unnamed client in Samsung’s major chip deal. Under this agreement, Samsung’s high-tech fabrication plant in Taylor, Texas, will manufacture Tesla’s next-generation AI6 chips, which are expected to power future Tesla vehicles, autonomous systems, humanoid robots, and advanced AI model training.

This partnership is a major step for both companies. Tesla secures a reliable partner to produce its custom-designed chips at scale, while Samsung gains a high-profile customer to help revive its struggling chip foundry business. The contract is expected to last until the end of 2033 and could help Samsung recover from heavy losses in its chip division, which recently faced losses of around $3.6 billion in just the first half of the year.

Elon Musk emphasized the strategic importance of the partnership in a recent post, stating that Tesla will work closely with Samsung to boost efficiency at the Texas plant. He also hinted that the total deal value may exceed $16.5 billion. Following this news, Samsung’s shares jumped by around 6–7%, showing strong market confidence in the deal.

  • Samsung’s Texas plant will focus on making Tesla’s new AI6 chips, with Tesla helping to improve production yield and speed.
  • The agreement gives Tesla a stable and advanced chip supply, while offering Samsung a big customer and stronger market credibility.

Although there is no exact timeline yet, experts believe Samsung could begin manufacturing the AI6 chips in 2027 or later, after Tesla’s current generation AI5 chips are fully deployed. This long-term deal positions both Tesla and Samsung to play leading roles in future innovations in EVs, robotics, and artificial intelligence.

Previous Article

HONOR Launches the All-new HONOR X6c & HONOR X7c with AI Features and Big Battery

Next Article

Vivo Y400 Launch Date Teased with 6000mAh Battery and Dual Cameras