September 1, 2025
Samsung Electronics has signed a landmark $16.5 billion multiyear agreement to manufacture Tesla’s AI6 chips at its advanced Taylor, Texas facility. The collaboration, confirmed by Elon Musk via X, signals a strategic shift for both companies: Tesla strengthens its control over AI hardware production, while Samsung breathes new life into its U.S. foundry operations.
Running from mid-2025 through 2033, the deal will see Samsung producing AI6 chips for Tesla’s most ambitious projects, including its advanced Full Self-Driving system, the Optimus humanoid robot, and in-house AI computing infrastructure.
Musk referred to the $16.5 billion figure as a “baseline,” hinting that real volumes and revenue could rise considerably as production scales.
The announcement had an instant effect on markets:
• Samsung’s shares surged between 6% and 7%.
• Tesla’s stock posted modest gains.
Industry analysts consider the agreement a critical boost for Samsung’s foundry division, which has faced client losses and substantial financial headwinds. The company estimates it could generate up to $2.4 billion in annual revenue by 2027.
Despite optimism, the road is not without obstacles. The Taylor facility in Texas is still relatively new, and achieving consistent, high-yield chip production will require overcoming quality and operational challenges. Musk’s hands-on role in the manufacturing process, an unusual concession for a semiconductor giant, also raises concerns over the protection of Samsung’s proprietary processes.
Some analysts caution that, even if the partnership performs well, annual revenues might still fall short of offsetting the foundry unit’s historical losses.
If successful, this partnership could redefine the competitive landscape of AI chip production. By combining Tesla’s technological ambitions with Samsung’s manufacturing capabilities, the deal has the potential to accelerate progress in autonomy, robotics, and high-performance AI computing — while strengthening the U.S. role in the global semiconductor supply chain.
