In a high-stakes tech play, Tesla taps Samsung’s Texas plant for $16.5 billion AI6 chips, aiming to power future self-driving cars and humanoid robots.
Tesla has struck a $16.5 billion agreement with Samsung Electronics to supply chips for its next-generation AI systems. The deal will see Samsung manufacture Tesla’s upcoming AI6 chips at its new plant in Taylor, Texas.
According to a report by Reuters, Tesla’s Chief Executive Elon Musk said the AI6 chips would be used in self-driving vehicles and Optimus humanoid robots, with potential applications across broader AI platforms.
He confirmed Tesla would work closely with Samsung to improve manufacturing efficiency and hinted the total output could be “several times” higher than the announced figure.
Samsung shares rose 6.8% on Monday following the news, as investors saw the contract as a boost to its struggling foundry business.
The Taylor facility has faced repeated delays and struggled to attract customers. Analysts said the Tesla order is significant, though it may represent only a small portion of Samsung’s annual logic chip revenue.
However, production of the AI6 chips is still years away. Musk has indicated that AI5 chips will begin production in late 2026, suggesting AI6 output may start in 2027 or later. This timeline means the deal is unlikely to address Tesla’s immediate challenges, including declining electric vehicle sales and slow progress on robotaxi deployment.
Samsung already produces Tesla’s AI4 chips for its Full Self-Driving system. Its rival TSMC is set to make the AI5 chips, initially in Taiwan and later in Arizona.
The report stated that this move is part of Samsung’s strategy to expand beyond memory chips into contract manufacturing, a market dominated by TSMC. The South Korean firm holds just 8% of the global foundry market compared with TSMC’s 67%.
Analysts estimate Samsung’s foundry division lost over 5 trillion won ($3.6 billion) in the first half of the year. However, no link has been confirmed between the Tesla deal and ongoing US–South Korea trade talks on semiconductor and shipbuilding cooperation.
