AUSTIN/SEOUL – Tesla CEO Elon Musk confirmed today, July 28, that the automaker signed a staggering $16.5 billion chip supply agreement with Samsung Electronics, slated to run through 2033. Under the pact, Samsung’s new fabrication facility in Taylor, Texas, will produce Tesla’s AI6 chips, powering autonomous driving features, Optimus humanoid robots, and AI training centers. Musk emphasized:
“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate.”
He added that Tesla will actively participate in optimizing manufacturing efficiency, personally overseeing production lines thanks to proximity to his residence.
Samsung shares surged nearly 7% on the news, driving up its market cap by around $20 billion, while Tesla stock also rose about 1.9%.
AI6 Chips: From Samsung’s New Texas Foundry to Tesla’s Robot Dreams
- AI chip roadmap: Samsung has long produced Tesla’s AI4 chips; TSMC was handling the interim AI5, with production in Taiwan and Arizona. AI6 will mark a new phase for Tesla’s key technologies.
- While the official value is $16.5 billion, Musk has suggested actual production volumes could exceed this baseline significantly.
- The AI6 chips will underpin Tesla’s next-gen Full Self‑Driving, Robotaxi fleet, Optimus robots, and infrastructure for AI compute workloads.
Why Samsung — Not an American Supplier?
- Tesla likely prioritized advanced fabrication expertise, and Samsung is pushing into 2-nanometer logic chips at the new Texas fab — backed by Chips Act funding totaling billions for US-based semiconductor expansion.
- Samsung struggles to attract customers for its new US facility: until now, the Taylor fab had nearly no anchor client, making Tesla’s deal crucial for utilization and credibility.
- Tesla already uses Samsung for AI4 chips, meaning the relationship, yield familiarity, and collaboration on process efficiency were already in place. Samsung permitted Tesla to assist in manufacturing — a flexibility that may not have been offered by other US or Taiwanese foundries.
Strategic Implications & Next Steps
| Aspect | Key Insight |
|---|---|
| Duration | Deal spans 2025–2033, anchored at around $16.5 billion |
| Geographic Fit | Production hosted in Texas, satisfying US localization goals |
| Company Benefit | Samsung gains a major client for its underutilized Taylor plant |
| Tesla Advantage | Hands-on optimization and streamlined chip delivery for AI roadmap |
Samsung’s foundry business had posted steep losses – over ₩5 trillion (~$3.6 B) in early 2025 – and has struggled to compete with giants like TSMC (holding ~67% market share vs. Samsung’s ~7–8%). The Tesla contract may serve as a turning point, boosting Samsung’s credibility in high-end logic manufacturing.
For Tesla, reliance on TSMC for AI5 and now Samsung for AI6 reflects a multi‑supplier strategy, optimizing access to cutting-edge nodes and domestic production under US policy frameworks.
The deal as a strategic fusion
Market analysts interpret the deal as a strategic fusion: Tesla strengthens its AI hardware pipeline, while Samsung gains a reputation as a capable foundry partner beyond memory chips. Some warn about Samsung’s yield challenges with advanced nodes, but many see this as a necessary boost that could help sustain the company’s broader transition into contract logic manufacturing.
Equity markets responded positively: Samsung stock jumped ~6.8%, Tesla rose ~1.5–1.9%, signaling investor approval for the synergy and scale potential of the agreement.
Tesla’s $16.5 billion Samsung pact marks a pivotal moment in its chip strategy, blending domestic manufacturing, die-level customization, and tight process collaboration. By choosing Samsung over a purely American or TSMC path for AI6, Musk secures not only the chips his next-gen products require—but also influence over the production process at a factory he can oversee closely. (zai)