The recent deal between Tesla and Samsung Electronics, worth about $16.5 billion, was announced on July 28, 2025.
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Tesla and Samsung Electronics have signed a $16.5 billion chip supply deal that will last eight years, through the end of 2033.
According to Elon Musk, Samsung will manufacture its next generation of AI chips — called AI6 — at a new factory in Taylor, Texas; This was previously a factory with almost no customers and was delayed from opening until 2026.
Musk emphasized that Tesla was allowed to optimize the production process, and he would closely follow the line to speed up the progress, He also said that the figure of 16.5 billion USD is only the minimum starting point, because the actual output could be many times higher, This contract is considered the largest customer order ever for Samsung's foundry division, accounting for about 7.6% of the company's 2024 revenue. For Tesla, it allows Tesla to have a source of highly customized chips, used in autonomous vehicles, humanoid robots and AI systems for data centers, reducing dependence on chips from Nvidia, AMD and TSMC.
For Samsung
This is a necessary boost to save the foundry business that is losing money and losing market share to TSMC and SK Hynix, It can help Samsung improve its yield rate and attract more large customers.
Production and roadmap.
Samsung will manufacture AI6 chips for Tesla at its Texas fab, which is expected to be operational in 2026 and begin production in 2027–2028, This will be a major expansion of Samsung’s logic chips, which have previously focused on memory chips.
Quick Comparison
Item Details Contract Value$16.5 billion over 8 years (until 2033) AI6 Chips — Tesla’s Next Generation of Chips Samsung fab in Taylor, Texas, USARole Tesla Chip design, manufacturing optimization, monitoring Big impact for both Tesla (AI performance) and Samsung (foundry)
A few additional notes
Musk believes this figure is just a minimum, as the actual chip volume could be much larger.
Samsung may take some profit risk if it has to accept favorable terms to attract Tesla, but the contract plays a key role in its foundry expansion strategy, AI6 chips, TSMC's role in Tesla's chip supply chain, or Tesla's schedule for future AI chips.
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