Samsung Signs Record $16.5B Tesla Chip Deal—Musk Confirms on X

 Samsung Secures Record $16.5B Foundry Deal to Produce Tesla’s Next-Gen AI6 Chips

Samsung Electronics has signed its largest-ever single foundry contract, valued at $16.5 billion (₩22.8 trillion), to produce Tesla’s next-generation AI6 chips, which will power the company’s autonomous vehicles and humanoid robots.

The deal, covering the period from July 24, 2025, to December 31, 2033, was disclosed by Samsung on July 26. The company initially withheld the client’s name due to strict confidentiality agreements, but Tesla CEO Elon Musk confirmed the partnership on X, stating that “a major Korean company will be dedicated to producing Tesla’s next-generation AI6 chips at our new Texas factory.”

Musk’s Involvement Raises Stakes

Musk added that Tesla would help maximize Samsung’s manufacturing efficiency and that he would personally inspect the production lines, noting that the factory is conveniently located near his Austin residence. Musk is known for his hands-on approach, often staying at Tesla factories to oversee production ramp-ups.

Tesla reportedly demanded manufacturing oversight rights as part of the contract to ensure chip supply stability. While this collaboration could improve production efficiency, it may also add operational pressure on Samsung during the 8-year contract period.

Implications for the AI Chip Market

The chips to be produced at Samsung’s Texas foundry are expected to outperform current AI4 chips supplied by TSMC to companies like Google. While TSMC is preparing to produce AI5 chips, Tesla aims to leapfrog competitors with its AI6 platform.

Musk emphasized that $16.5B is only the minimum value, hinting that actual chip production could far exceed initial estimates due to high demand for autonomous vehicle and humanoid robot projects.

Risks Remain

Despite Musk’s optimism, some analysts caution that Tesla’s self-driving and robotics projects may not grow as quickly as expected, though the majority remain bullish about the company’s long-term potential.

With this deal, Samsung strengthens its position in the AI semiconductor race, competing head-to-head with TSMC and other foundry leaders in next-generation chip production.