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Tesla Inks $16.5 Billion Chip Supply Agreement with Samsung to Strengthen AI Chip Production:

Category : Business and economics
Published on: July 30 2025 Share on facebook

Tesla CEO Elon Musk confirmed a $16.5 billion agreement to source advanced semiconductor chips from Samsung Electronics. The chips will be manufactured at Samsung’s new facility in Taylor, Texas, specifically for Tesla’s next-gen AI6 chips. This deal is expected to revitalize Samsung’s struggling contract chipmaking division. Musk emphasized that Tesla would help improve production efficiency and stated the actual supply value could exceed the initial $16.5 billion figure. Samsung shares surged to their highest point since September 2024 following the announcement.

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