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6d ago

Samsung and Tesla Confirm $16.5 Billion AI6 Chip Production Pact in Texas

Elon Musk’s confirmation has triggered a surge in Samsung shares, underscoring the Texas fab’s strategic role in powering Tesla’s next-generation AI chips.

tesla samsung | Image: Reuters
Samsung inks $16.5 billion chip deal with Tesla for next-gen AI6 semiconductors.
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Samsung Electronics Co.'s corporate logo at its Seoul office (Yonhap)

Overview

  • A regulatory filing shows Samsung’s foundry unit has inked a $16.5 billion contract running through Dec. 31, 2033, its largest-ever chip order and equal to 7.6% of last year’s revenue.
  • Tesla CEO Elon Musk revealed on X that the deal will dedicate Samsung’s Taylor, Texas, plant to manufacturing the automaker’s upcoming AI6 processor.
  • The pact is aimed at revitalizing Samsung’s loss-making foundry division and helping the company close the technology and market-share gap with leader TSMC in AI chip fabrication.
  • Analysts say the contract will rely on Samsung’s established semiconductor processes rather than its cutting-edge 2-nanometer node, which still faces yield-rate challenges.
  • Following Musk’s announcement, Samsung’s stock jumped over 4%, reflecting renewed investor confidence in its U.S. expansion and partnership with Tesla.