Overview

• Under the $16.5 billion multiyear agreement, Samsung will build Tesla’s next-generation AI6 chips at its new Taylor, Texas, fabrication facility.
• Elon Musk confirmed on X that he will personally oversee manufacturing efficiency as the plant focuses on chips for autonomous vehicles, AI data centers and humanoid robots.
• The partnership marks Tesla’s shift in semiconductor sourcing from TSMC to Samsung as it secures high-performance hardware for its full self-driving and robotics ambitions.
• Samsung’s shares climbed 6.83% in Seoul and Tesla’s rose 4% after the announcement, while TSMC shares fell 1.5%, reflecting investor response.
• Leveraging up to $4.75 billion in US funding and tax credits from the 2022 Chips and Science Act, analysts at Samsung Securities project the Texas fab will begin operations in 2026.