Billionaire Elon Musk has confirmed that Tesla will source $16.5 billion (about £12.8 billion) worth of chips from Samsung Electronics until 2033, marking a major win for the South Korean firm’s struggling chip foundry business.
Tesla has signed a $16.5 billion (about £12.8 billion) agreement with Samsung Electronics for a long-term supply of advanced automotive chips, Elon Musk said on Monday, in a deal expected to stabilise Samsung’s embattled contract chipmaking unit.
Musk said the chips, designated AI6, would be produced at Samsung’s forthcoming fab in Taylor, Texas.
“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,” he wrote on social media platform X.
Samsung confirmed the deal earlier on Monday without naming the client, citing confidentiality requests. However, three sources briefed on the matter told Reuters the customer is Tesla. Samsung shares jumped more than 4% after the announcement.
The agreement will run until the end of 2033 and is seen as a strategic boost to Samsung’s foundry operations, which have lost ground to Taiwanese rival TSMC. Analysts estimate the unit incurred losses exceeding 5 trillion won (about $3.63 billion) in the first half of 2025.
The foundry has been losing customers such as Apple and Nvidia to TSMC due to lagging yields in advanced chip nodes. Industry analysts said the Tesla deal will help reduce these losses, although the chips involved are unlikely to use Samsung’s cutting-edge 2-nanometre technology.
“Samsung agreed to allow Tesla to assist in maximising manufacturing efficiency,” Musk said, adding he would personally oversee progress at the plant, located near his residence.
The chip partnership may also carry geopolitical weight. South Korea is pursuing closer U.S. industrial ties, including in chipmaking and shipbuilding, as it negotiates to avoid possible 25% tariffs on key exports.
Samsung is the world’s largest maker of memory chips but continues to trail TSMC in logic chip manufacturing. Analysts say the Tesla contract, while not enough to reverse Samsung’s market position, could restore investor confidence as it seeks to win back high-profile clients.
A federal jury in California ruled on Friday that Apple must pay $634 million to Masimo, a medical-monitoring technology company, for infringing a pat...
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Russian President Vladimir Putin and Israeli Prime Minister Benjamin Netanyahu held a phone conversation on Saturday to discuss the situation in Gaza ...
A federal jury in California ruled on Friday that Apple must pay $634 million to Masimo, a medical-monitoring technology company, for infringing a patent related to blood-oxygen reading technology.
Thousands of climate demonstrators filled the streets of Belém on Saturday, marching loudly and peacefully to demand stronger action to protect the planet and to voice frustration at governments and the fossil fuel industry.
Storm Claudia, which brought violent weather to Portugal, has resulted in the deaths of three people and left dozens injured, authorities reported on Saturday. Meanwhile, in Britain, rescue teams were organising evacuations due to heavy flooding in Wales and England.
A landslide caused by heavy rainfall in Central Java has claimed the lives of 11 people, Indonesia's disaster management agency reported on Saturday. Rescue teams are still searching for a dozen individuals who remain missing.
Britain’s King Charles III marks his 77th birthday. Unlike his predecessors, King Charles treats his actual birthday, on 14 November, as his main moment of reflection. This year, King Charles visited Wales—a decision that coincides with the overall spirit of his first three years on the throne.
The Azerbaijan embassy in Kyiv was damaged by debris from an Iskander missile during Russia’s overnight attack, which killed four people and injured dozens, President Volodymyr Zelenskyy said on Friday.
Storm Claudia, which brought violent weather to Portugal, has resulted in the deaths of three people and left dozens injured, authorities reported on Saturday. Meanwhile, in Britain, rescue teams were organising evacuations due to heavy flooding in Wales and England.
Iran has strongly rejected as “unfounded and irresponsible” a joint statement by the foreign ministers of the Group of Seven (G7) about Tehran’s nuclear program and its alleged support of Russia in the war with Ukraine.
Japan urged China on Saturday to take "appropriate measures" after Beijing issued a warning to its citizens against travelling to Japan, amid an ongoing dispute over Taiwan.
A federal jury in California ruled on Friday that Apple must pay $634 million to Masimo, a medical-monitoring technology company, for infringing a patent related to blood-oxygen reading technology.
Wall Street closed sharply lower on Thursday, dragged down by steep losses in Nvidia, Tesla, and other artificial-intelligence heavyweights, as investors dialed back expectations for further Federal Reserve interest-rate cuts amid renewed inflation concerns and mixed signals from policymakers.
Russia’s budget deficit reached 4.2 trillion rubles (around $51.9 billion) in the first ten months of 2025, driven by rising government spending, according to data from the Finance Ministry released on Tuesday.
Wall Street climbed sharply on Monday, with Nvidia up 5.8% and Palantir 8.8%, as artificial intelligence (AI) stocks rebound and progress in Congress raises hopes of ending the U.S. government shutdown.
Visa and Mastercard announce a $38 billion settlement with merchants over high swipe fees, including fee reductions, surcharges options, and eight-year caps on standard consumer cards, resolving a 20-year antitrust battle.
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