Samsung unveils a $16.5B chip deal with Tesla that runs through the end of 2033; Elon Musk says the deal is to make Tesla's next-gen AI6 chips in Taylor, Texas

Samsung Electronics Co. will produce AI semiconductors for Tesla Inc. in a new $16.5 billion pact that marks a win for its underperforming foundry division.

Bloomberg 2025-07-28

Discussion

@elonmusk Elon Musk on x
Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip. The strategic importance of this is hard to overstate. Samsung currently makes AI4. TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.
@elonmusk Elon Musk on x
Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house 😃
@jukanlosreve Jukan on x
Samsung signs $16.1 billion foundry contract, presumed to be with Tesla. [image]
@basedbeffjezos @basedbeffjezos on x
AI chips made in America! LFG
@aapltree @aapltree on x
I get it, but I would LOL if Samsung decided to fold System LSI. South Korea certainly wouldn't like it. Chips are a national security thing, not just important tech, bragging rights and UGH FINE ayyy-eyes things.
@benbajarin Ben Bajarin on x
Elon/Tesla may have single handedly helped Samsung foundry stay in the logic business.
@basedbeffjezos @basedbeffjezos on x
Elon is getting into fabs. Unfathomably bullish.
@jukanlosreve Jukan on x
According to reports from the Korean media, Tesla reportedly requested a product yield of around 60-70%, and Samsung Electronics is preparing to meet this requirement. Full-scale mass production and delivery are expected around 2028, about three years from now. The plan involves …
@arjunkharpal Arjun Kharpal on x
Samsung Electronics has entered into a $16.5 billion contract for supplying semiconductors to Tesla. This is a big deal for Samsung and also a win for Amercia's reshoring efforts. Here's why🧵
@arjunkharpal Arjun Kharpal on x
In semiconductor manufacturing Taiwan Semiconductor Manufacturing Co (TSMC) holds a huge market share. Samsung is a very distant 2nd. Samsung for years has been trying to boost its own chipmaking business known as foundry. But these huge contracts have been rare
r/teslamotors r on reddit
Samsung has struck a $16.5 billion deal to produce semiconductors for Tesla, boosting its underperforming foundry division
r/hardware r on reddit
Samsung signs $16.5 billion foundry contract lasting to 2033, rumored to be for Tesla FSD chips

Chronicles

Samsung unveils a $16.5B chip deal with Tesla that runs through the end of 2033; Elon Musk says the deal is to make Tesla's next-gen AI6 chips in Taylor, Texas

Related Coverage

Discussion