Tesla has secured a $16.5 billion contract with Samsung Electronics to supply semiconductor chips. The deal was confirmed by both Samsung’s regulatory filing and Tesla CEO Elon Musk. It will take effect on July 26, 2025, and run through December 31, 2033.
Samsung will manufacture Tesla’s upcoming AI6 chips at its new plant in Texas. Currently, it produces the AI4 chip, while TSMC is expected to handle AI5 production.
Musk said Tesla will also help Samsung improve its manufacturing processes. He also suggested the final value of the deal may exceed the initial estimate. Samsung noted that parts of the agreement could still be revised or canceled before it ends.
Following the announcement, Samsung’s stock rose more than 6%, hitting its highest level since September 2024. The company also revealed plans to begin producing 2nm chips, designed for better performance and power efficiency.
Samsung is the world’s second-largest chip foundry behind only TSMC. Stay tuned for further updates.
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