Elon Musk’s Tesla has inked a big care for Samsung Electronics. The Elon Musk’s corporate has inked a big chip provide settlement with Samsung. The deal is reportedly price $16.5 billion and is ready ti run in the course of the finish of 2033. The announcement was once showed by means of Tesla CEO Elon Musk, who stated Samsung had agreed to permit “complete customisation of Tesla-designed chips”. Along side this, Musk additionally published that Samsung’s newest Texas fabrication plant can be devoted to generating Tesla’s next-generation A16 chipset. This care for Tesla marks as a the most important win for Samsung as the corporate was once reportedly suffering with losses and stiff festival.
Elon Musk confirms Tesla’s chip care for Samsung
Tesla CEO Elon Musk lately showed that the corporate has signed a care for Samsung for whole customisation of Tesla-designed chips. Musk showed the care for a publish on social media platform X (previously referred to as Twitter). “Samsung agreed to permit Tesla to lend a hand in maximising production potency. It is a vital level, as I can stroll the road individually to boost up the tempo of development. And the fab is comfortably positioned no longer some distance from my area,” wrote Musk.Tesla CEO additionally showed that Samsung will manufacture Tesla’a next-generation A16 chipset at information Texas fabrication. At the moment Samsung makes A14 chip for Tesla, while TSMC will manufacture the A15 chipset in Taiwan and Arizona. “Samsung’s massive new Texas fab will probably be devoted to creating Tesla’s next-generation AI6 chip. The strategic significance of that is onerous to overstate. Samsung these days makes AI4. TSMC will make AI5, which simply completed design, to begin with in Taiwan after which Arizona,” added Musk.
Why is the deal essential for Samsung and Tesla
The deal stated to be a very powerful win for Samsung’s contract chip-making trade, which has been suffering to compete with opponents like TSMC. As in line with the analyst, the partnership is claimed to assist Samsung in decreasing the loses in its foundry department which reportedly exceeded $3.6 million within the first part of 2025. However, for Tesla the deal way a continuing provide of customized common sense chips made for its evolving AI stack.The deal additionally carries broader geopolitical implications, strengthening era ties between South Korea and america, specifically amidst ongoing business discussions and attainable US price lists.