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yesterday

Tesla and Samsung Lock In $16.5 Billion AI6 Chip Deal at Texas Fab

Securing at least $2 billion in annual AI6 chip orders through 2033 has prompted Samsung to accelerate construction of its Texas fabrication and packaging facilities.

The Tesla logo is seen on a car at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (Photo by Hector RETAMAL / AFP) (Photo by HECTOR RETAMAL/AFP via Getty Images)
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Overview

  • Tesla and Samsung signed a multiyear $16.5 billion contract on July 28 to produce Tesla’s next-generation AI6 automotive processor at Samsung’s Texas facility through December 2033 with an initial annual volume of about $2 billion.
  • Elon Musk pledged to personally oversee production efficiency on-site, emphasizing hands-on involvement to maximize chip output at the new fab.
  • The agreement marks a rare foundry victory for Samsung over dominant rival TSMC and bolsters Samsung’s effort to reclaim market share in advanced automotive logic chips.
  • In response to Tesla’s order, Samsung has fast-tracked equipment installation at its long-delayed Texas fab and revived plans for a U.S.-based advanced packaging plant.
  • Samsung is positioning its 2 nanometer Automotive SF2A process chips at roughly one-third below TSMC’s wafer prices to attract additional foundry customers.