Tesla and Samsung Electronics Ink Historic $16.5B Chip Deal
Tesla CEO Elon Musk has confirmed a massive $16.5 billion semiconductor supply contract with Samsung Electronics, marking one of the largest foundry deals in the industry. The eight-year agreement, set to run until December 2033, will see Samsung manufacture Tesla’s next-generation AI6 inference chips at its new facility in Taylor, Texas.
This deal signifies a major victory for Samsung’s foundry business, which has been grappling with losses estimated to be over $3.6 billion in the first half of 2025. Following the announcement, Samsung shares experienced a 6.8% surge, reaching their highest level since September 2024. The contract represents approximately 7.6% of Samsung’s 2024 annual revenue.
Musk emphasized the role of Samsung in the production of chips for Tesla’s self-driving vehicles and Optimus humanoid robots, hinting at potential broader AI applications. “Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency,” Musk stated, adding that he will “walk the line personally to accelerate the pace of progress.”
The partnership could potentially bolster Samsung’s position against industry leader TSMC, which currently holds a 67% market share compared to Samsung’s 8% in the global foundry market.
Source: CNBC