Samsung inked a record-breaking tech agreement of $16.5 Billion with Elon Musk’s Tesla to produce AI chips for machine learning model oriented products.
The world's richest man, Elon, took to X and announced: “Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency.”
X, formerly known as Twitter, owner, further wrote: “Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate.”
“Samsung currently makes AI4. Taiwan Semiconductor Manufacturing Company (TSMC) will make AI5, which just finished design, initially in Taiwan, then Arizona,” SpaceX CEO concluded.
American vehicle company and US automaker company both joined hands for 7 years of tech units manufacturing partnership. Samsung Electronic shares plunged to 7% higher after Elon's declaration on July 28, 2025.
The South Korean chip maker company also builds logic chips from its foundry business and production for Tesla is expected to start in 2027 at the base manufacturing unit of Taiwan.
Analysts say world top TV selling outlet CEO Lee Jae-yong was struggling to get potential clients and Samsung foundry business was in loss of almost $3.6 billion in total.
TSMC numbers Qualcomm, Apple and Nvidia among its famous and usual clients while the EV company is expected to use AI sensor chips in self-driving cars, AI data centers and in humanoid robotics.
Tech giant contract official starting date was July 26, 2025, as per receipt of orders and it will end on December 31, 2025.
