US EditionMusk says Tesla, Samsung Electronics sign $16.5 billion chip supply deal
- A regulatory filing in South Korea showed Samsung Electronics secured a $16.5 billion chip deal, with no confirmation from Elon Musk or specific manufacturing details.
- Earlier this month, Samsung Electronics projected a 56% plunge in second-quarter operating profit to about 5 trillion won, and an analyst estimated its foundry unit lost over $9 billion in the first half of this year.
- As per the regulatory filing, the deal starts on July 24 and runs through December 31, 2033, with Samsung’s Taylor, Texas plant scheduled to begin operations in 2026, and Tesla assisting in manufacturing efficiency.
- Shares of Samsung on the Korean stock exchange surged almost 7% on Monday, while Tesla shares rose 1.58% in premarket trading to $321.
- By partnering with Samsung Electronics, Tesla secures an alternative to TSMC, and the deal supports Samsung's revenue stream, according to Musk's announcement.
125 Articles
125 Articles
Elon Musk is going founder mode on Tesla's $16.5 billion chip deal with Samsung
After Tesla signed a semiconductor deal with Samsung, Elon Musk wrote that he would "walk the line personally to accelerate the pace of progress."Marc Piasecki/Getty ImagesElon 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."Musk has previously employed a hands-on, "founder mode" approach to runn…
Samsung to make Tesla AI chips in multiyear Texas deal
(Bloomberg/Yoolim Lee and Shinhye Kang) — Samsung Electronics Co. will produce AI semiconductors for Tesla Inc. in a new $16.5 billion pact that marks a win for its underperforming foundry division. South Korea’s largest company announced on Monday that it secured the 22.8 trillion won chipmaking agreement, which will run through the end of 2033. The plan is for an upcoming plant in Taylor, Texas, to produce Tesla’s next-generation AI6 chip, Tes…
Tesla signs $16.5 billion deal with Samsung to make AI chips
Tesla has signed a $16.5 billion deal to source chips from Samsung Electronics, a move that could bolster the South Korean tech giant’s unprofitable contract business but is unlikely to help Tesla sell more EVs or roll out robotaxis more quickly. Tesla CEO Elon Musk said late on Sunday that Samsung’s new chip factory in Taylor, Texas would make Tesla’s next-generation AI6 chip. This could re-energize Samsung’s project, which has faced long delay…
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