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yesterday

Tesla and Samsung Seal $16.5 Billion Deal for Next-Gen AI6 Chips

Running through 2033, the pact secures production at Samsung’s Taylor, Texas, plant with Tesla overseeing efficiency improvements.

tesla samsung | Image: Reuters
Elon Musk confirms $16.5 billion chip deal with Samsung for Tesla’s next-gen AI6 hardware
A view of a Samsung Electronics Vietnam factory in Bac Ninh province, Vietnam, April 3, 2025. Vietnam, with a tariff rate of 46 per cent imposed by U.S. President Donald Trump, is one of six countries in the nine Southeast Asian region slapped with much bigger-than-expected by the U.S. REUTERS/Stringer/File Photo
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Overview

  • Tesla confirmed a $16.5 billion supply agreement with Samsung to produce its next-generation AI6 chips.
  • Production will take place at Samsung’s Taylor, Texas facility, which benefits from approximately $4.75 billion in U.S. CHIPS Act support.
  • Samsung has granted Tesla a role in optimizing manufacturing yields to help address over 5 trillion won in first-half foundry losses.
  • The multiyear contract is set to run through December 31, 2033, anchoring output at a plant that had faced delays and underutilization.
  • The partnership represents a strategic bid by Samsung to boost its contract manufacturing arm and compete more directly with TSMC.