{"id":28247,"date":"2025-07-28T19:55:08","date_gmt":"2025-07-28T19:55:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/28247\/"},"modified":"2025-07-28T19:55:08","modified_gmt":"2025-07-28T19:55:08","slug":"musk-hails-16-5bn-samsung-deal-to-supply-tesla-with-ai-chips-tesla","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/28247\/","title":{"rendered":"Musk hails $16.5bn Samsung deal to supply Tesla with AI chips | Tesla"},"content":{"rendered":"

Samsung has agreed a $16.5bn (\u00a312.3bn) deal to manufacture artificial intelligence chips for Tesla<\/a>, in a move hailed by Elon Musk<\/a>.<\/p>\n

The South Korean tech company announced the contract with an unnamed client in a regulatory filing, with Tesla\u2019s chief executive giving further details on his social media platform, X.<\/p>\n

Musk wrote that Samsung<\/a> would produce Tesla\u2019s next-generation AI6 chips at a new plant in Texas.<\/p>\n

\u201cThe strategic importance of this is hard to overstate,\u201d he wrote.<\/p>\n

In December, the Biden administration announced $4.75bn in funding for Samsung\u2019s semiconductor manufacturing facilities in Texas under the Chips Act<\/a>, legislation aimed at making the US more self-sufficient in chip manufacturing. At the time, the then US commerce secretary, Gina Raimondo, said the funding would ensure the country had a \u201csteady stream\u201d of chips essential to AI and national security.<\/p>\n

In a post on X on Monday, Musk said Samsung had agreed to allow Tesla<\/a> to \u201cassist in maximising manufacturing efficiency\u201d and he would \u201cwalk the [manufacturing] line personally to accelerate the pace of progress\u201d.<\/p>\n

He added that the Samsung plant in Taylor, outside Austin, Texas<\/a>, was \u201cconveniently located not far from my house\u201d.<\/p>\n

The deal will help re-energise a project that faced long delays amid Samsung\u2019s difficulties in retaining and attracting big clients. Ryu Young-ho, a senior analyst at Seoul-based NH Investment & Securities, said the Taylor plant \u201cso far had virtually no customers\u201d, making the deal \u201cquite meaningful\u201d.<\/p>\n

Alvin Nguyen, a senior analyst at Forrester, a global research and advisory firm, said it was a \u201cgood deal for both companies\u201d.<\/p>\n

He added: \u201cSamsung gets a customer for their semiconductor business and in a US facility that has plenty of capacity. Tesla gets a partner that has the capacity to produce their chips in the US that minimises their supply chain complexity.\u201d<\/p>\n

In October, Reuters reported that Samsung had postponed taking deliveries of chipmaking equipment from ASML, a Dutch manufacturer<\/a>, for the Texas site as it had not yet won any significant customers for the project. It has already delayed the plant\u2019s operational start to 2026.<\/p>\n

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Samsung makes Tesla\u2019s AI4 chips, which power the carmaker\u2019s full self-driving driver assistant system. Taiwan\u2019s TSMC is slated to make the AI5 chips for Tesla, initially in Taiwan and then Arizona, Musk has said.<\/p>\n

The regulatory filing by Samsung announcing the chip supply agreement did not name the client, saying the customer had requested confidentiality about the details of the deal, which will run through the end of 2033.<\/p>\n

Samsung has been approached for comment.<\/p>\n

Reuters contributed to this article<\/p>\n","protected":false},"excerpt":{"rendered":"Samsung has agreed a $16.5bn (\u00a312.3bn) deal to manufacture artificial intelligence chips for Tesla, in a move hailed…\n","protected":false},"author":2,"featured_media":28248,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,105],"class_list":{"0":"post-28247","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-au","12":"tag-australia","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/28247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=28247"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/28247\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/28248"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=28247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=28247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=28247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}