Tesla and Samsung strike a landmark US$16.5 billion chip deal, with Samsung’s Texas fab set to produce Tesla’s next-gen AI6 chips, strengthening supply chain integration and foundry capabilities.
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| Tesla and Samsung’s US$16.5 billion deal accelerates chip production for AI6 at Samsung’s new Texas fab, boosting AI and semiconductor innovation for both companies. Image: DIGITIMES ASIA |
TAIPEI, Taiwan – September 19, 2025:
In a landmark US$16.5 billion partnership, Tesla and Samsung have come together to power the next era of AI-driven innovation. Announced as a critical alliance, the deal centers on the production of Tesla's next-generation AI6 chips at Samsung’s new fab in Taylor, Texas. The deal is seen as a win-win for both tech giants, combining Tesla’s leading-edge AI and robotics ambitions with Samsung’s growing foundry capabilities.
For Tesla, the deal goes far beyond merely securing a reliable supply of advanced chips. It offers customized support and enhanced bargaining power, enabling Tesla to meet the increasing demand for AI chips that power not just electric vehicles (EVs), but also robotics and emerging AI applications. Tesla’s approach to chip development is highly specialized, with an emphasis on chips tailored for its products, unlike traditional chip designers who mass-produce standardized solutions.
The US$16.5 billion order also provides Tesla with much-needed flexibility and risk diversification as it continues its push to stay ahead in the AI race. By securing Samsung as a partner, Tesla is positioning itself for greater efficiency and faster time-to-market with AI-powered technologies, giving it an edge in next-generation products like autonomous driving and robotics.
For Samsung, the partnership serves as a major boost to its foundry business. With competition in the semiconductor market intensifying, Samsung is looking to expand its client base and showcase its foundry capabilities to the world. The partnership with Tesla offers not only a significant financial windfall but also a vote of confidence in Samsung’s long-term manufacturing and technological capabilities.
This collaboration will allow Samsung to strengthen its presence in the global semiconductor market, with an eye on diversifying its client portfolio beyond internal demand. By securing high-profile clients like Tesla, Samsung aims to enhance its reputation in the foundry industry and attract additional external partners. This is critical for Samsung as it works to regain market share from rivals like Intel and TSMC, which dominate the foundry space.
The Tesla-Samsung alliance is based on synergy between two companies with complementary strengths. Tesla’s demand for chips—specifically in AI, EVs, and robotics—aligns perfectly with Samsung’s foundry expertise, particularly in producing customized chips for specific needs. Tesla’s modest scale of EV sales (under 2 million annually) has historically limited its access to the services of giants like TSMC, which prefer higher-volume orders. Samsung, on the other hand, is willing and able to adapt its processes to meet Tesla’s specialized needs.
In return, Samsung stands to gain more than just a client. With Tesla’s focus on robotics, EVs, and AI, the two companies’ product lines complement each other, creating opportunities for vertical integration. Samsung’s memory chips, batteries, and displays could soon find their way into Tesla’s growing lineup of autonomous vehicles and AI-powered products, ensuring long-term demand for Samsung’s products while offering Tesla the integrated solutions it requires to drive its innovation forward.
Tesla’s commitment to US manufacturing is highlighted by the Taylor, Texas fab, which will begin 2nm production in 2026. This partnership emphasizes Samsung's dedication to supporting US tech innovation, with AI6 chip production aimed at meeting both Tesla’s needs and fueling broader developments in AI and robotics. The deal also marks a turning point for US-based semiconductor manufacturing, ensuring that cutting-edge chips will be made on US soil, benefiting both Tesla and Samsung’s global supply chain.
Samsung’s investment in foundry growth is pivotal to its strategic shift. According to DIGITIMES, Samsung and Intel are expected to capture 10% and 9% of the global foundry market by 2025, largely driven by internal demand. However, attracting new clients like Tesla is essential to Samsung’s efforts in strengthening its foundry business. The US$16.5 billion deal with Tesla sends a clear signal that Samsung is not only capable of meeting large-scale orders but also able to innovate and adapt to the fast-changing landscape of the AI and semiconductor industries.
In all, the Tesla-Samsung partnership represents far more than a typical business contract. It marks a strategic alliance that plays a key role in supply chain integration, AI development, and the advancement of foundry capabilities. This deal could set the stage for even greater collaboration between the two companies, positioning them to lead the next wave of AI innovation and semiconductor development.
The US$16.5 billion deal is just the beginning. As AI6 chip production ramps up at the Texas fab, the future of this partnership will hinge on the production performance and yield rates, as well as the evolving needs of Tesla’s AI-powered ecosystem. If successful, this deal will shape the next era of advanced semiconductor manufacturing, ensuring that both Tesla and Samsung remain at the forefront of the rapidly advancing world of AI and robotics.