Samsung Electronics Made A $16.5 Billion Deal With Tesla

Samsung Electronics has secured a $16.5 billion multiyear chip contract with Tesla Inc., confirmed by Elon Musk, to produce Tesla’s AI6 semiconductors at Samsung’s new fabrication facility in Texas.

The deal, which runs through 2033, marks a monumental shift for Samsung’s foundry business, one that has long lagged behind competitors like TSMC and SK Hynix in advanced AI chip production.

The partnership is expected to help stabilize Samsung’s foundry division, which posted losses of over $3.6 billion in the first half of 2025.

While the Texas fab has faced delays and production yield challenges, the AI6 chip deal represents a major vote of confidence from Tesla.

Analysts note the order likely doesn’t involve Samsung’s cutting-edge 2-nanometer process, but it nonetheless provides a lifeline amid rising United States and South Korea cooperation on tech and manufacturing strategy.

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