Samsung Electronics has locked in a massive $16.5 billion deal to supply Tesla with critical semiconductors for the next decade, a move confirmed by Tesla CEO Elon Musk on his social media platform, X.
The deal was first revealed in a regulatory filing from Samsung, which did not name its partner. But Musk quickly ended the speculation, confirming Tesla was the customer. He revealed that Samsung’s massive new factory in Texas will be dedicated to producing Tesla’s next-generation “AI6” chip, describing the deal’s strategic importance as “hard to overstate.”
Musk also said he would “personally walk the line” at the factory to accelerate progress and hinted that the deal could ultimately be even larger than the announced $16.5 billion.
For Samsung, this is a massive victory. The South Korean tech giant’s chip division has been struggling lately, falling behind rivals like SK Hynix in the race to produce high-demand memory chips for AI. This long-term contract with one of the biggest names in tech provides a much-needed boost and a powerful vote of confidence in its manufacturing capabilities. Samsung’s stock jumped 5% on the news.
The deal secures a critical supply chain for Tesla’s ambitious plans for self-driving cars and robotics, while giving Samsung a huge win in the intensely competitive semiconductor market.
