Tesla and Samsung Electronics have signed a landmark $16.5 billion agreement to produce Tesla’s next-generation AI6 semiconductor chips, cementing one of the largest technology supply contracts of the decade.
Under the multiyear deal, Samsung’s Taylor, Texas plant will exclusively manufacture the AI6 chips from 2025 through 2033, according to joint announcements and regulatory filings. The chips will power Tesla’s Full Self‑Driving systems, its Optimus humanoid robot, and the company’s AI data infrastructure.
Tesla CEO Elon Musk confirmed that the Texas fab was selected partly because of its proximity to his home base, allowing him to “personally track progress.” Samsung currently makes Tesla’s AI4 chips, while rival TSMC is contracted to produce the interim AI5 chip at its facilities in Taiwan and Arizona.
The agreement represents a strategic victory for Samsung’s U.S. foundry business, which has lagged Taiwan’s TSMC. Samsung’s market share in contract chipmaking is estimated at just 8%, compared to TSMC’s 67%. Analysts say the Tesla partnership could help Samsung recover from recent operational losses, including more than $3.6 billion in early 2025.
Musk described the $16.5 billion sum as a minimum commitment, suggesting the total value of chips produced could be “multiple times higher” over the life of the deal.
Samsung’s Taylor plant is expected to begin full operations by 2026, with AI6 chip production projected to start by 2027 or 2028. The facility had faced delays due to supply chain issues and a lack of clients; the Tesla contract is seen as the catalyst to bring it fully online.
Following the announcement, Samsung shares jumped nearly 7%, while Tesla stock rose about 4%, reflecting investor confidence in the collaboration’s potential impact.
