On July 28, 2025, Tesla and Samsung Electronics confirmed a significant partnership involving a $16.5 billion agreement for the supply of advanced AI chips. This collaboration is set to enhance Tesla's autonomous driving systems and AI capabilities.
The chips will be produced at Samsung's new fabrication facility in Taylor, Texas, with production expected to commence in 2026. Tesla CEO Elon Musk emphasized the strategic importance of this development, stating that the facility will be dedicated to manufacturing Tesla's next-generation AI6 chip. He also mentioned that Tesla would assist Samsung in optimizing manufacturing efficiency to accelerate progress.
This partnership is anticipated to bolster Samsung's foundry business, which has faced challenges in attracting major clients. The deal is expected to run through December 31, 2033, and is projected to significantly increase Samsung's foundry revenue, potentially stabilizing its financial performance.
Analysts view this agreement as a pivotal move for both companies. For Tesla, it secures a dedicated supply of advanced chips crucial for the development of its Full Self-Driving (FSD) system and other AI-driven technologies. For Samsung, the deal represents a substantial opportunity to expand its presence in the competitive semiconductor market, particularly in the advanced chip manufacturing sector.
As the automotive industry increasingly integrates AI technologies, this collaboration between Tesla and Samsung is poised to play a significant role in advancing autonomous driving capabilities and the broader adoption of AI in transportation.