Samsung Electronics has confirmed a massive $16.5 billion semiconductor supply deal with Tesla. The news became public through a regulatory filing by Samsung and was later confirmed by Elon Musk at X.
Samsung Electronics has confirmed a massive $16.5 billion semiconductor supply deal with Tesla. The news became public through a regulatory filing by Samsung and was later confirmed by Elon Musk at X.
The deal officially took effect on July 26, 2024, and will run until December 31, 2033, according to Samsung’s filing. Although Tesla was not initially named as a buyer in the document, Musk later confirmed the company’s participation. He also revealed key details of the project, including the important role of Samsung’s semiconductor plant in Texas, Interesting Engineering reports .
“Samsung’s new giant plant in Texas will be dedicated to producing the next-generation Tesla AI6 chip. The strategic importance of this is hard to overstate. Samsung is currently producing AI4. TSMC will produce the just-completed AI5, first in Taiwan and then in Arizona,” Elon Musk 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.
— Elon Musk (@elonmusk) July 28, 2025
Samsung currently makes AI4.
TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.
In another post, Musk added, “Samsung has agreed to let Tesla help maximize manufacturing efficiency. This is a critical moment as I will personally oversee the process to accelerate the pace of progress.” He hinted that the total value of the contract could eventually exceed the current $16.5 billion.
Despite this disclosure, Samsung said that full information, including the identity of the buyer, would remain confidential until the end of 2033. The company said this was due to a customer request to "protect trade secrets."
The deal is a key one for Samsung's foundry business, which has lagged behind rivals in the race to meet growing demand for artificial intelligence chips. According to various reports, Tesla was likely a customer before Musk publicly confirmed it.
