Share prices of both companies rose on July 28.
Tesla’s next-gen chips will be manufactured at Samsung’s upcoming semiconductor facility in Texas, the automotive company’s CEO, Elon Musk, said in a July 28 post on X.
Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate.
— Elon Musk (@elonmusk) July 28, 2025
Samsung currently makes AI4.
TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.
“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip,“ Musk said. ”The strategic importance of this is hard to overstate.
“Samsung currently makes AI4. TSMC [Taiwan Semiconductor Manufacturing Company] will make AI5, which just finished design, initially in Taiwan and then Arizona.”
The AI4 chips currently power Tesla’s Full Self-Driving driver assistant system.
“Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency,” Musk said in another X post. “This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house.”
A contract notice, uploaded by Samsung to its website on July 28, mentions that the company has entered into a deal worth $16.54 billion with a “large global company.” The contract period started on July 24 and ends on Dec. 31, 2033.
The name of the other party is being withheld because of business confidentiality, the notice states.
The information, together with key contract terms, will be revealed on the first business day following the withholding period, which is scheduled to end on Dec. 31, 2033, it reads.
“As the key details of the contract have not been disclosed to maintain business confidentiality, investors are advised to exercise caution, considering the possibility of changes to or termination of the contract,” the company said.
In a July 28 post on X discussing the $16.5 billion Samsung–Tesla deal, Musk replied that the amount is “just the bare minimum.”
The $16.5B number is just the bare minimum. Actual output is likely to be several times higher.
— Elon Musk (@elonmusk) July 28, 2025
Tesla share prices were trading 3.61 percent higher as of 12:10 p.m. EDT on July 28, with Samsung share prices up by 6.83 percent.
Samsung’s Taylor facility in Texas is being built at a cost of $17 billion, according to the company.
