Samsung Confirms $16.5B Tesla Chip Manufacturing Deal

Samsung Electronics has secured a record $16.5 billion contract to manufacture Tesla’s next-generation AI6 chips at its new Texas foundry, with the deal confirmed by Tesla CEO Elon Musk. The agreement, running through the end of 2033, marks the largest single-client semiconductor deal in Samsung’s history and is expected to boost its underperforming foundry business. Musk stated that Tesla will collaborate with Samsung to maximize manufacturing efficiency at the Texas facility. The contract has driven Samsung’s shares higher, reflecting renewed investor confidence and optimism about the company's 2-nanometer fabrication technology. The partnership positions both Samsung and Tesla to strengthen their roles in the global AI and semiconductor sectors. Analysts expect this deal to enhance Samsung’s foundry revenues and potentially attract further contracts from other chipmakers.