Tesla has officially confirmed a massive $16.5 billion semiconductor deal with Samsung Electronics, solidifying a long-term partnership to supply chips for its next-generation AI systems. The agreement was disclosed by Samsung in a regulatory filing, and Elon Musk later confirmed Tesla’s involvement via his social media platform, X.
The contract, effective from 26 July 2025 to 31 December 2033, will see Samsung’s new chip fabrication plant in Texas dedicated to producing Tesla’s next-gen “AI6” chips. Musk stated that Tesla will also help enhance production efficiency and hinted the deal’s total value could eventually exceed $16.5 billion.
Currently, Samsung manufactures Tesla’s AI4 chips, while Taiwan’s TSMC handles the AI5 lineup. This new deal positions Samsung in direct competition with TSMC as the AI chip race intensifies.
Samsung, under pressure to catch up with competitors like SK Hynix in high-bandwidth memory (HBM) production, is aiming to mass-produce 2-nanometre chips and secure additional AI-related contracts. The chipmaker has faced delays in HBM delivery, with its latest version expected no sooner than September.
Following the announcement, Samsung’s stock jumped over 6%, reaching its highest point since September 2024. More financial details are expected during Samsung’s Q2 earnings call scheduled for Thursday.
