Key Points
- Samsung has landed a $16.5 billion deal to make chips for Tesla.
- Tesla CEO Elon Musk confirmed the partnership on the social media platform formerly known as Twitter, now known as X.
- The deal is for Tesla’s next-generation “AI6” chip, which will be made at Samsung’s new factory in Texas.
- Musk said he will personally oversee the factory’s progress to expedite the process. The contract is set to run from 2025 through the end of 2033.
Samsung Electronics has secured a massive $16.5 billion contract to make semiconductors for Tesla. While the South Korean company was initially tight-lipped about its partner, Tesla CEO Elon Musk confirmed the deal on the social media platform formerly known as Twitter, now known as X.
In his posts, Musk revealed that Samsung’s giant new factory in Texas will be dedicated to producing Tesla’s next-generation “AI6” chip. He stressed that the “strategic importance of this is hard to overstate.” Musk also said he would personally “walk the line” at the factory to speed up progress and suggested the final deal could be even larger than the announced $16.5 billion.
The deal is a significant win for Samsung’s chip-making division, which has been working diligently to catch up in the rapidly growing AI market. While its rival TSMC is making Tesla’s current AI5 chip, this new contract positions Samsung as a key partner for Tesla’s future ambitions.
Samsung’s official regulatory filing was more cautious, not naming Tesla and citing a request to protect trade secrets. The contract is scheduled to commence in July 2025 and will remain in effect through the end of 2033. The news sent Samsung’s shares up over 6% to their highest level since September 2024.
