A major “Tesla Samsung partnership” was announced Sunday night as Elon Musk posted a massive $16.5 billion chip supply deal between Tesla and Samsung Electronics.
The chips will power Tesla’s next-generation AI6 processors, pivotal to the company’s AI and robotics strategy. Samsung’s new fabrication plant in Taylor, Texas, will be dedicated to producing these chips.
“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip,” Musk posted on X. “The strategic importance of this is hard to overstate.”
The announcement comes as Samsung struggles to compete with industry leaders like TSMC and SK Hynix in the booming artificial intelligence chip space.
Massive Boost for Samsung’s Struggling Foundry Business
Samsung shares surged 6.8% on the news, reaching their highest point since September 2024. The chip division had suffered setbacks, including delays in acquiring ASML equipment and a lack of major clients.
The Taylor factory’s operational launch was already postponed to 2026.
