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Tesla CEO Elon Musk says Tesla and Samsung Electronics signed a $16.5 billion chip supply deal
Monday, July 28, 2025 at 05:18 AM
Elon Musk announced that Tesla has entered into a major chip supply agreement with Samsung Electronics valued at $16.5 billion. The deal secures critical semiconductor components for Tesla's automotive and AI infrastructure needs.
Context
Tesla CEO Elon Musk confirmed on the social platform X that Tesla has signed a $16.5 billion chip supply deal with Samsung Electronics. While Samsung's initial regulatory filing on July 26, 2025, did not name the counterparty to protect trade secrets, Musk later identified Tesla as the partner, stating: "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." The contract is slated to run through December 31, 2033.
This agreement is a significant win for Samsung's foundry business, which has recently faced multi-billion dollar losses while trailing TSMC in the advanced node race. The next-generation AI6 chips, reportedly utilizing Samsung’s 2-nanometer process, are intended to power Tesla’s Full Self-Driving (FSD) systems, Optimus humanoid robots, and AI data centers. Recent reports from March 2026 suggest Tesla may already be looking to double its initial wafer orders as it accelerates its shift toward end-to-end neural networks.
Sources (10)
Samsung to Produce Chips for Tesla (TSLA) in $16.5 Billion Deal - BloombergElon Musk confirms Tesla has signed a $16.5 billion chip contract with SamsungTesla-Samsung $16.5 billion supply deal may spur chipmaker's US contract business | ReutersMusk announces Tesla, Samsung Electronics chip supply dealTesla signs $16.5B deal with Samsung to make AI chips | TechCrunchSamsung to Produce Tesla Chips in $16.5 Billion Multiyear Deal | SemiWikiSamsung Secures $16.5 Billion Semiconductor Deal with Tesla for Next-Gen AI6 ChipsTesla may have just changed everything for Samsung - TheStreet
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