Samsung Signs $16.5 Billion Semiconductor Deal with Tesla
Samsung Electronics has entered a massive $16.5 billion semiconductor contract with Tesla, as confirmed by regulatory filings and Tesla CEO Elon Musk’s statements on X.
The deal officially began on July 26, 2025, and runs until December 31, 2033. Although Samsung initially withheld Tesla’s name, citing confidentiality, Musk later confirmed Tesla was the counterparty.
In a post on X, Musk revealed that Samsung’s new Texas semiconductor plant will be dedicated to producing Tesla’s AI6 chip, a crucial component in the EV maker’s next-generation technologies. He noted, “Samsung currently makes AI4. TSMC will make AI5. Samsung agreed to let Tesla help optimize manufacturing efficiency — I’ll personally walk the line to speed things up.”
Musk also hinted the deal could grow larger than the publicly disclosed value.
Samsung, in its regulatory filing, said it would keep further details secret until 2033 due to trade secrecy concerns. The company cautioned investors to consider potential changes or termination of the agreement.
Following the announcement, Samsung shares jumped over 6%, reaching their highest since September 2024.
Industry experts had speculated that Tesla was the mystery customer, and Bloomberg News had previously reported the same.
Samsung is the world’s second-largest chip foundry after Taiwan Semiconductor Manufacturing Company (TSMC). The firm has plans to begin 2nm chip mass production, promising more powerful and efficient processors.
Meanwhile, Qualcomm is also rumored to be eyeing Samsung’s 2nm technology for future chip orders.
Despite this major win, Samsung has recently struggled in the high-bandwidth memory (HBM) market, falling behind SK Hynix and Micron. SK Hynix currently leads in supplying HBM chips to Nvidia, a dominant player in AI computing.
Samsung aims to catch up, but its latest HBM products are still undergoing certification, possibly delayed until at least September.
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