Overview

• The $16.5 billion multi-year contract runs through December 2033, dedicating Samsung’s Taylor, Texas fab to producing Tesla’s next-generation AI6 processors.
• Elon Musk confirmed the partnership on X, stating Tesla will assist in maximizing production efficiency with Musk personally overseeing the Texas fab’s operations.
• Samsung’s foundry arm posted losses exceeding 5 trillion won in the first half of 2025, with the deal aiming to boost capacity utilization and revenue stability.
• Samsung shares jumped 4–7 percent after Musk’s confirmation, reflecting investor optimism about the foundry division’s potential turnaround.
• The agreement reinforces U.S. AI chip capacity under the CHIPS Act, challenging TSMC’s 67 percent global foundry market share.