Tesla has entered into a $16.5 billion chip supply agreement with Samsung Electronics, marking one of the largest contracts in the semiconductor industry in recent years.
The deal, which will span eight to nine years, involves the production of Tesla’s next-generation AI6 chips, which are designed to power Full Self-Driving (FSD) systems, the Optimus robot, and Tesla’s AI training infrastructure.
Samsung will manufacture the chips at its semiconductor plant in Taylor, Texas, which was recently backed by the U.S. government under the CHIPS and Science Act. This agreement is expected to boost Samsung’s foundry business in the U.S. and reduce Tesla’s dependence on third-party GPU suppliers.
Elon Musk confirmed the agreement via social media, stating the chips are “critically important” to Tesla’s future plans and hinted that Tesla will collaborate with Samsung to improve production efficiency.
Following the announcement, Samsung shares rose by nearly 7%, while Tesla stock gained around 4%.
Industry analysts see the deal as a major step forward for both companies in their push to lead in AI and autonomous technologies.
