Texas, July 29 (V7N) – Tesla and Samsung Electronics have entered a $16.5 billion agreement under which Samsung will manufacture Tesla’s AI6 chips at its facility in Taylor, Texas. This landmark deal is expected to significantly bolster Samsung’s contract chip production business.
 
Tesla CEO Elon Musk revealed that the Taylor plant will produce the next-generation inference chips that will power Tesla’s autonomous driving systems and Optimus humanoid robots. Musk emphasized collaboration with Samsung to maximize manufacturing efficiency, stating the factory is conveniently located near his residence. He further noted that the $16.5 billion figure represents a baseline, with actual production volumes likely to exceed that amount.
 
Following the announcement, Samsung shares rose nearly 7%, reflecting investor optimism about revitalizing its foundry division. In contrast, Tesla shares gained about 4% amid mixed prospects—while the deal underscores Tesla’s long-term AI ambitions, the facility’s production start is not expected until 2027 or 2028, limiting short-term impact on EV sales or robotaxi operations.
 
Tesla currently sources AI4 chips from Samsung and plans to have its AI5 chips produced by TSMC in Taiwan and Arizona before ramping up AI6 production. This latest deal aligns with broader strategic efforts in the auto industry to internalize chip design and reduce dependency on external suppliers amid ongoing geopolitical and supply chain uncertainties.
 
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