Samsung Signs $16.5 Billion Deal to Make AI Chips for Tesla
Jul 28, 2025
Samsung Electronics has announced a contract worth $16.5 billion to supply semiconductors to a major global corporation. The company did not disclose the client's name in its regulatory filing, but Tesla CEO Elon Musk later confirmed that the deal is with Tesla.
The agreement is for Samsung to manufacture next-generation AI chips for Tesla. These chips will be produced at Samsung's facilities in Texas. Previously, Samsung has been making the AI4 chip for Tesla, while Tesla's upcoming AI5 chip will be made by another company, TSMC.
Following the news, Samsung Electronics shares rose as investors responded positively to the large-scale deal.
Who is Samsung making these chips for?
Samsung is making the chips for Tesla.
What will the chips be used for?
The chips are AI chips to be used by Tesla, likely for their vehicles or related technologies.
Where will the chips be manufactured?
The chips will be manufactured at Samsung's facilities in Texas.
Did Samsung disclose the client at first?
No, Samsung did not initially name the client, but Elon Musk later stated it is Tesla.
Sources
Samsung Elec signs $16.5 billion contract to supply semiconductors
Reuters
Reuters
Samsung Electronics said on Monday it has signed a contract valued at $16.5 billion to supply semiconductors to a major global corporation, in a regulatory filing. It did not name the counterpart.
Samsung Electronics signs $16.5 billion chip-supply contract; shares rise
CNBC
CNBC
Samsung Electronics shares opened 3.5% higher after the company disclosed a $16.5 billion contract to supply semiconductors to a major global corporation.
Musk says Tesla is the unnamed client in Samsung's $16.5 billion microchip deal
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Samsung will make next-generation chips for Tesla, Elon Musk announced Monday.
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Musk pointed out that Samsung currently manufactures Tesla's AI4 chip. The billionaire said his company has completed the design for the AI5 chip, which will be manufactured by TSMC, Samsung's primary chipmaking rival.
Samsung Foundry Signs $16.5 Billion Deal With Tesla To Make AI Chips
Forbes
Forbes
Samsung Electronics, controlled by South Korean billionaire Jay Y. Lee, has signed a 22.8 trillion won ($16.5 billion) multiyear deal with Tesla to manufacture AI chips for the U.S. electric vehicles-to-AI giant.
Musk hails $16.5bn Samsung deal to supply Tesla with AI chips
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South Korean tech company will produce carmaker's next-generation semiconductors at new plant in Texas
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Tesla stock advanced prior to the stock market open Monday.
Tesla inks $16.5B chip supply deal with Samsung
Proactive Investors
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Tesla Inc (NASDAQ:TSLA) has signed a $16.5 billion multiyear chip supply deal with Samsung Electronics, set to last through the end of 2033, CEO Elon Musk announced on Monday. This agreement is focused on South Korea-based Samsung producing Tesla's next-generation AI6 chips at a new fabrication faci...
Samsung to Make Tesla AI Chips in $16.5 Billion Deal
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Tesla's deal with Samsung will onshore and diversify the supply of chips that power Tesla's self driving cars. Bloomberg's Ed Ludlow joins Open Interest to talk about the context behind the deal.
Tesla, Samsung reach $16.5B contract
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CNBC's Kristina Partsinevelos joins 'Squawk on the Street' to discuss the latest news on the chips sector.
Tesla signs $16.5B deal with Samsung to make AI chips
TechCrunch
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Tesla has signed a $16.5 billion deal to get its next-generation chips from Samsung.
Elon Musk is going founder mode on Tesla's $16.5 billion chip deal with Samsung
Business Insider
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Elon Musk wrote that he would "walk the line personally" of Samsung's Texas chipmaking plant that will make Tesla chips. Samsung's chip plant is only miles away in Taylor, which Musk wrote was "convenient.
Tesla signs a $16.5 billion chip contract with Samsung Electronics
CNBC Television
CNBC Television
Elon Musk confirmed that Tesla has signed a $16.5 billion chip contract with Samsung Electronics. Samsung, which is set to deliver earnings on Thursday, expects its second-quarter profit to more than halve.
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Jed Dorsheimer, William Blair analyst, joins 'The Exchange' to discuss Tesla's chip deal with Samsung and what it means for the stock.
Tesla and Samsung ink $16.5B chips deal
CNBC Television
CNBC Television
CNBC's Kristina Partsinevelos joins 'The Exchange' to discuss Tesla and Samsung's new partnership.
Samsung Scores Deal to Make AI Chips for Tesla
Bloomberg Technology
Bloomberg Technology
Samsung will produce AI semiconductors for Tesla, in a $16.5 billion pact that marks a win for its underperforming foundry division. Bloomberg's Peter Elstrom discusses changes in the chip market with Caroline Hyde and Ed Ludlow on “Bloomberg Tech.
William Blair is all praise for Tesla-Samsung partnership but remains dovish on...
Invezz
Invezz
William Blair analyst Jed Dorsheimer was all praise for Tesla Inc (NASDAQ: TSLA) $16.5 billion chip supply agreement with Samsung Electronics in an interview with CNBC today, but he won't recommend buying the EV stock still.
Tesla, Samsung Sign $16.5 Billion Deal to Make AI Chips
WSJ
WSJ
The chips will be designed for AI data centers, autonomous driving and robots. Shares in the South Korean tech giant surged.
Samsung Electronics shares fall 1% after rallying on Tesla deal
Reuters
Reuters
Shares in Samsung Electronics fell 1% on Tuesday after the South Korean technology company staged a powerful rally in the previous session on news of a $16.5 billion deal to supply chips to Tesla.
Tesla and Samsung strike AI chip deal
Proactive Investors
Proactive Investors
Samsung Electronics (KRX:005930) has signed a $16.5 billion agreement to manufacture artificial intelligence chips for Tesla Inc (NASDAQ:TSLA), with production set to take place at the Korean giant's new facility in Taylor, Texas. The deal, confirmed by Elon Musk on his social media platform, is for...
Samsung Electronics chief heads to Washington after $16.5 bln Tesla chip deal
Reuters
Reuters
The chairman of South Korea's Samsung Electronics Jay Y. Lee departed on Tuesday to Washington for a business trip, a company spokesperson said, a day after unveiling a $16.5 billion deal to supply chips made in Texas to Tesla.
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