|
Getting your Trinity Audio player ready...
|
Samsung Electronics has finalized a $16.5 billion contract to supply semiconductors to Tesla, marking a major milestone for the South Korean tech giant’s foundry business. The agreement, confirmed by Tesla CEO Elon Musk on July 28, 2025, will run through December 31, 2033 and centers on the production of Tesla’s next-generation AI6 chips.
The chips will be manufactured at Samsung’s new fab in Taylor, Texas, which Musk described as “strategically vital” to Tesla’s autonomous vehicle roadmap. He also revealed that Tesla will actively assist in optimizing production efficiency, with Musk personally overseeing progress at the facility.
Following the announcement, Samsung shares surged over 5%, reflecting investor confidence in the company’s ability to regain ground in the competitive semiconductor market. The deal is expected to bolster Samsung’s position against rivals like TSMC and SK Hynix, particularly in the race to meet soaring demand for AI and automotive chips.
While Samsung initially withheld the client’s identity due to confidentiality clauses, Musk’s public confirmation has spotlighted the partnership as a potential turning point for Samsung’s loss-making foundry division. Analysts estimate the deal could boost Samsung’s foundry sales by 10% annually over the contract period.
