In a milestone semiconductor agreement, Tesla and Samsung Electronics have inked a USD 16.5 billion contract for Samsung to fabricate Tesla’s next‑generation AI6 chips at its Taylor, Texas facility. The deal, effective from July 26, 2025 to December 31, 2033, marks Samsung’s largest foundry agreement to date.
Tesla CEO Elon Musk confirmed the collaboration via X, highlighting that Samsung’s new Texas fab will be dedicated entirely to AI6 chip production, with Tesla closely involved in refining manufacturing efficiency—even “walking the line personally” to accelerate operations.
The AI6 chips are engineered to power Tesla’s expanding AI systems, including Full Self‑Driving (FSD), the Optimus humanoid robot, and the Dojo supercomputer training infrastructure. Samsung will continue producing Tesla’s current AI4 chips, while interim AI5 chips will be produced by TSMC in Taiwan and later in Arizona.
For Samsung, this deal is a critical lifeline for its struggling foundry division, which has been trailing behind TSMC with just a 7.7 % foundry market share, while posting losses exceeding USD 3.6 billion in early 2025. The contract injects much-needed revenue and credibility into Samsung’s bid to challenge TSMC in advanced logic chip manufacturing. Analysts note that though the annual contract average (~USD 2.1 billion) may not reverse all losses, Musk has hinted that actual production could be several times higher, potentially exceeding USD 20 billion.
The announcement pushed Samsung shares up nearly 6–7%, while Tesla’s stock also climbed. Industry watchers see the Tesla–Samsung tie-up as a key example of U.S.-based onshoring of critical chip production, aligned with CHIPS Act incentives and efforts to reduce dependence on East Asia supply chains.
This strategic alliance empowers Tesla’s vertical integration into chip design and production, while giving Samsung a major AI chip customer—and both companies a stronger footing in the evolving era of AI-driven hardware.
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