A mega deal worth $16.5 billion between Tesla and Samsung for semiconductor supply from the technology giant was announced by Elon Musk. As he stated in his post on platform “X”: “Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. Samsung currently makes AI4. TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona”.
Announces $16.5 billion deal between Tesla and Samsung for chips
Mr Tesla emphasized that: “Samsung agreed to allow Tesla to help maximize manufacturing efficiency. This is significant, as I will personally contribute to accelerating the pace of progress. And the factory is conveniently located, not far from my home”.
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.
Samsung currently makes AI4.
TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.
— Elon Musk (@elonmusk) July 28, 2025
According to Reuters, as soon as the deal was announced, Samsung shares rose more than 4%. Samsung had earlier announced a $16.5 billion chip supply agreement without naming the customer, citing confidentiality. However, it noted that the agreement runs until the end of 2033.
It’s worth noting that this mega deal comes as Samsung faces increasing pressure in AI chip production, as it lags behind its competitors. This agreement will provide significant profits and boost its stock price.
