Tesla Awards Samsung $16.4 Billion Deal to Build AI6 Chips in Texas
- Elon Musk confirmed that Samsung will manufacture Tesla’s next-gen AI6 chip at its Texas plant.
- Samsung signed a record $16.4B foundry contract with a major client, boosting its semiconductor division.
- Taiwan's TSMC will initially produce Tesla’s AI5 chip, with Samsung continuing to work on improving AI4 efficiency.
In a significant move for the semiconductor and EV industries, Elon Musk, CEO of Tesla, announced that Samsung Electronics will manufacture Tesla's upcoming AI6 chip at its semiconductor plant in Texas. The announcement was made on Musk’s social media platform X (formerly Twitter), where he emphasized the strategic significance of the development, calling it 'hard to overstate'.
The AI6 chip is engineered to be scalable, catering to both Tesla’s humanoid robots and self-driving vehicles, while also being powerful enough for artificial intelligence (AI) data centers. This marks a major step in Tesla’s push to develop custom silicon optimized for AI performance.
Musk also revealed that the AI5 chip, currently in its final design phase, will initially be produced by Taiwan Semiconductor Manufacturing Company (TSMC) in Taiwan. While TSMC remains a critical partner, Samsung will now take the lead role in manufacturing the more advanced AI6 chip.
Samsung currently produces the AI4 chip for Tesla and has agreed to collaborate closely to maximize manufacturing efficiency.
In a regulatory filing on Monday, Samsung Electronics confirmed it secured a massive 22.8 trillion-won ($16.4 billion) semiconductor order from a major, undisclosed client widely speculated to be Tesla. The foundry contract is scheduled for completion by December 31, 2033, and represents the largest chip order in Samsung’s history.
The deal is poised to bolster Samsung’s struggling foundry division, helping it close the gap with industry leader TSMC. Despite estimating a second-quarter operating profit of 4.59 trillion won on sales of 74 trillion won, Samsung’s foundry and System LSI units have underperformed, making this Tesla partnership a timely boost.
