Rumor
Samsung Executive Chairman Lee Jae-yong meets with Tesla CEO Elon Musk and tours Taylor, Texas chip plant
Thursday, December 11, 2025 at 10:41 PM
Samsung Executive Chairman Lee Jae-yong met with Tesla CEO Elon Musk on Thursday. The meeting included a tour of Samsung's new chip manufacturing facility located in Taylor, Texas.
Context
Tesla has secured an eight-year, $16.5 billion foundry deal with Samsung Electronics, extending through approximately 2033. This agreement designates Samsung's Taylor, Texas fab for the production of Tesla's next-generation AI6 chip. Elon Musk has indicated close involvement, stating he will "walk the line personally" to maximize manufacturing efficiency. The Taylor fab is projected to begin tool installation in H1 2026, with risk/qualification wafers in 2H 2027, and a full ramp around 2028, though partial operations may start in 2026. This partnership is strategically significant for Samsung Foundry, which holds about 7-8% of the global foundry market compared to TSMC's 67-70%. The deal provides Samsung with a crucial anchor U.S. customer, potentially boosting its utilization and credibility. For Tesla, it shortens the geographic supply chain, with the Taylor fab located near Gigafactory Texas. While the $17 billion Taylor plant investment is substantial, execution risks, including yield challenges and the multi-year ramp to 2nm maturity, remain key considerations for investors.
Sources (16)
Samsung Electronics signs $16.5bn deal with Tesla to ...Tesla inks $16.5B chip deal with Samsung to boost AI ...Tesla Signs $16.5 Billion AI Chip Supply Pact with SamsungThe Silicon Gambit: Analyzing the Tesla-Samsung Alliance ...Samsung to Make Tesla AI Chips in $16.5 Billion Deal - TTTesla CEO holds video call with Samsung Chairman on $16.5 bn ...Musk: "Video call with Lee Jae-yong... Discussed partnership details"Samsung repeats 2026 goal for $17 billion US chip plant
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