TLDR: Tesla has awarded Samsung Electronics a significant $16.4 billion contract to manufacture its next-generation AI6 chips at Samsung’s new semiconductor facility in Taylor, Texas. This deal, confirmed by Elon Musk, is Samsung’s largest chip order to date and is crucial for Tesla’s advancements in full self-driving systems and humanoid robots.
Samsung Electronics has secured a landmark 22.8 trillion-won (approximately $16.4 billion) contract with Tesla to produce its advanced AI6 chips. This deal, announced on July 28, 2025, marks the largest chip order in Samsung’s history, accounting for roughly 7.6 percent of its annual revenue last year. While Samsung initially declined to name the customer citing confidentiality, Tesla CEO Elon Musk publicly confirmed the partnership on his social media platform X (formerly Twitter).
The AI6 chips are slated for production at Samsung’s forthcoming semiconductor facility in Taylor, Texas. This facility is part of Samsung’s substantial $37 billion U.S. investment initiative and is expected to commence operations in 2026. The contract with Tesla is seen as a pivotal development for the Texas fab, which had reportedly faced delays in securing anchor clients.
Musk emphasized the strategic importance of this collaboration, stating it is ‘hard to overstate.’ He also revealed that Samsung is currently manufacturing Tesla’s AI4 chips, while Taiwan Semiconductor Manufacturing Company (TSMC) will produce the newly designed AI5 chips, initially in Taiwan and later at its Arizona facility. The AI6 chips are designed to be highly scalable, suitable for applications ranging from humanoid robots and self-driving cars to powerful artificial intelligence data centers.
Elon Musk further highlighted his personal involvement in accelerating the project’s progress, noting, ‘I’ll personally walk the line to speed up progress.’ He also mentioned the convenient proximity of the Texas fab to his residence. The deal, which runs through the end of 2033, is expected to significantly bolster Samsung’s foundry business, which has historically lagged behind TSMC.
Also Read:
- Tesla Faces Shareholder Scrutiny Over Proposed xAI Investment
- South Korea Accelerates Towards AI Leadership by 2030 with Major Investments in Data, Talent, and Infrastructure
For Samsung, this agreement comes at a critical time as the company strives to enhance its position in the competitive AI chip market. The contract is anticipated to provide a much-needed boost to its profits and stock performance, as it seeks to close the gap with industry leaders in the global foundry market.
