Samsung Electronics (KRX:005930) has signed a $16.5 billion agreement to manufacture artificial intelligence chips for Tesla Inc (NASDAQ:TSLA), with production set to take place at the Korean giant's new facility in Taylor, Texas.
The deal, confirmed by Elon Musk on his social media platform, is for Tesla’s next-generation AI6 chips and runs until the end of 2033.
Musk described the partnership as highly significant and said Tesla will be closely involved in maximising manufacturing efficiency at the site, which is located near his home.
The arrangement breathes new life into Samsung’s Texas plant, which had struggled to attract major clients and had delayed its operational start to 2026.
Analysts said the contract is mutually beneficial, securing a key customer for Samsung and simplifying Tesla’s chip supply chain within the United States.