Elon Musk Announces Upcoming Tesla-Saumsung Chip Manufacturing Collaboration
Elon Musk, CEO of Tesla, has said Samsung Electronics will manufacture the US electric vehicle maker's next-generation AI6 chip at its semiconductor plant in the state of Texas.
Musk made the announcement on Sunday (US time) on his social media platform X, formerly known as Twitter, stating, "The strategic importance of this is hard to overstate.'
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.
Samsung currently makes AI4.
TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.
— Elon Musk (@elonmusk) July 28, 2025
He added that Taiwan Semiconductor Manufacturing Company (TSMC), which has just completed its design phase, will initially produce the AI5 chip in Taiwan, reports Yonhap news agency.
Musk also said Samsung, which currently manufactures the AI4 chip, has agreed to allow Tesla to collaborate in efforts to maximise manufacturing efficiency.
Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency.
This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house 😃
— Elon Musk (@elonmusk) July 28, 2025
Tesla's AI6 chip is designed to be scalable -- small enough for use in humanoid robots and self-driving cars but powerful enough for an artificial intelligence (AI) data centre.
Samsung Electronics said on Monday it has secured a 22.8 trillion-won (US$16.4 billion) order to supply semiconductors to a major undisclosed customer. In a regulatory filing, the South Korean tech giant said it signed a foundry contract set to be completed by December 31, 2033.
The contract accounts for 7.6 percent of the company's total revenue of 300.9 trillion won last year and marks the largest chip order ever won by Samsung Electronics.
The deal is expected to give a much-needed boost to its foundry division, which has long struggled to catch up with global industry leader Taiwan Semiconductor Manufacturing Company (TSMC).
In its earnings guideline released earlier this month, Samsung Electronics estimated an operating profit of 4.59 trillion won and sales of 74 trillion won for the second quarter.
In particular, operating profit failed to meet market expectations, mainly due to the sluggish performance of the foundry and the System Large Scale Integration (LSI) divisions, according to the report.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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