Samsung Secures $16.5 Billion Deal to Manufacture Tesla AI Chips at Texas Plant

Samsung Electronics has clinched a $16.5 billion multiyear agreement to produce advanced artificial intelligence chips for Tesla at an upcoming facility in Taylor, Texas, marking a significant gain for the South Korean conglomerate’s foundry division. The deal, extending through 2033, aims to supply Tesla’s next-generation AI6 chips that will underpin the automaker’s future driver-assistance systems. This contract—Samsung’s largest foundry win yet—arrives as the company faces stiff competition from industry leader TSMC and lags in foundry market share. Executive Chairman Jay Y. Lee’s recent exoneration is believed to help Samsung turn the page on past setbacks. Elon Musk regards the alliance as a strategic milestone, predicting actual chip output may far exceed the contract’s base value. Samsung’s stock surged on the announcement, offering hope for revival at its previously underperforming chipmaking unit.

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