Elon Musk says Tesla, Samsung Electronics sign chip supply deal
Empower your mind, elevate your skills
Tesla CEO Elon Musk said on Monday that the US automaker has signed a deal to source chips from Samsung Electronics, a move expected to bolster the South Korean tech giant's loss-making contract manufacturing business.On Saturday, Samsung announced a $16.5 billion chip supply deal with a major global company, without naming the client. It said the customer had requested confidentiality about the details of the deal, which will run through the end of 2033.Three sources briefed about the matter told Reuters that Tesla was the customer for the deal.The deal comes as Samsung faces mounting pressure in the race to produce artificial intelligence chips, where it trails rivals such as TSMC and SK Hynix. This lag has weighed heavily on its profits and share price.Samsung, the world's top memory chip maker, also makes logic chips designed by customers through its foundry business.Pak Yuak, an analyst at Kiwoom Securities, said the latest deal would help reduce losses at Samsung's foundry business, which he estimated exceeded ₩5 trillion ($3.63 billion) in the first half of the year.Analysts say Samsung has struggled with the defection of key clients to TSMC for advanced chips. TSMC counts Apple, Nvidia and Qualcomm among its customers.The Samsung-Tesla deal is also significant for South Korea, which is seeking U.S. partnerships in chips and shipbuilding amid last-ditch efforts to reach a trade deal to eliminate or reduce potential 25% U.S. tariffs.It is not clear how the order would affect Samsung's plan to start production at its new factory in Texas, which has been delayed as it struggles to win major customers.Samsung is grappling to boost production yields of its latest 2-nanometer technology, and the order is unlikely to involve the cutting-edge tech, Lee Min-hee, an analyst at BNK Investment & Securities, said.Samsung has been losing market share to TSMC in contract manufacturing, underscoring technological challenges the firm faces in mastering advanced chip manufacturing to attract clients like Apple and Nvidia, analysts said. ($1 = ₩1,378.7000)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
18 minutes ago
- Hindustan Times
Tesla's most affordable EV won't be a new model, but a stripped-down Model Y
Tesla CEO Elon Musk has confirmed that the long-rumoured affordable electric car from the brand will not come as a brand new model, but a stripped-down version of the Model Y crossover, which was launched in India earlier this month. Tesla CEO confirmed this during a shareholders' call, following the company's first build in June and a planned launch later this year. The most affordable Tesla EV has remained one of the most discussed topics in the world automotive community. Making it more topical are the slumping sales numbers of the automaker. In the recent past, Tesla has been sailing through troubled waters. This has made the case for a more affordable Tesla EV stronger. The auto company already revealed it is planning to launch an affordable electric vehicle. Now, Musk's confirmation has ended months of speculation. It was widely speculated that Tesla would unveil its most affordable electric car in the first half of 2025. However, that didn't materialise. Now, with Musk's confirmation, it seems the unveiling is likely to take place later this year. However, Tesla has not revealed any specific timeframe. Also, this follows the cancellation of two cheaper projects, NV91 and NV92, in early 2024, as Tesla shifted focus to utilise underused Model 3 and Model Y production lines amid demand challenges. A stripped-down Tesla Model Y: Why is it important for India? The upcoming most affordable Tesla EV is expected to come with a less premium interior. It will come sans the luxuries such as rear screens and use cheaper materials. aligning with the EV manufacturer's strategy to boost sales without investing in new architecture. Such cost-cutting moves will help Tesla reduce the cost of the electric car significantly. While globally, Tesla has been witnessing a slowdown in its sales numbers, even in China, India could play a key role in boosting the carmaker's retail figures. In that case, the new affordable Tesla could be the OEM's best bet to grab a sizeable chunk of the country's electric car market. Tesla has already started business operations in India. The OEM launched its first showroom in Mumbai and is gearing up to launch another in Delhi. The Model Y is currently being offered in the Indian market as a CBU product. Expect the upcoming affordable model to be introduced to the Indian market as well when Tesla launches it. Check out Upcoming EV Cars in India. First Published Date:
Hans India
41 minutes ago
- Hans India
Trump's AI Tool Targets Massive Federal Regulation Cuts, Sparks Legal and Ethical Debate
In a bold move to reshape the federal regulatory landscape, the Trump administration has turned to artificial intelligence to fast-track its ambitious deregulation agenda. A new report from The Washington Post reveals that a government-deployed AI system, dubbed the DOGE AI Deregulation Decision Tool, is being used to identify and eliminate a sweeping number of federal rules—potentially as many as half of the current 200,000 regulations. The tool is operated under the Department of Government Efficiency (DOGE), a body created to modernize and streamline federal operations. So far, the AI has already reviewed and recommended removal of more than 1,000 regulations at the Department of Housing and Urban Development (HUD) in just two weeks. It's also credited with drafting all recent deregulations at the Consumer Financial Protection Bureau (CFPB). Government insiders told The Post that DOGE AI was developed by a team of engineers recruited during tech billionaire Elon Musk's brief involvement with the agency. According to a presentation reviewed by the publication, DOGE AI is being promoted as a cost-saving solution that could cut bureaucratic red tape, lower compliance costs for businesses, and attract new investment by simplifying the regulatory environment. Agencies across the federal government have been given a deadline of September 1 to submit their lists of regulations to be reviewed—and potentially scrapped—using the AI tool. The Trump administration hopes this initiative will deliver visible results by the first anniversary of Trump's return to office. This AI-driven approach follows Trump's earlier executive order, issued in January, directing federal agencies to eliminate ten existing rules for every new one introduced. Departments like Transportation and Labor have already announced significant rollbacks of existing regulations as part of this push. Despite the technological enthusiasm, the move has drawn mixed reactions across federal agencies. While some departments have embraced DOGE AI's rapid processing capabilities, others are voicing caution. Critics argue that relying on AI to review intricate and legally sensitive regulations could result in oversight, errors, or even violations of administrative law. Legal experts emphasize that repealing federal rules is not a simple task. Administrative law mandates rigorous processes, including public consultations, environmental impact assessments, and legal reviews. Automating this work, they argue, could undermine the integrity of the system. Adding to the uncertainty is internal tension among federal staff. Some employees fear that increased dependence on AI could lead to flawed policy decisions. Meanwhile, ongoing staffing cuts are reportedly hampering the speed at which agencies can review or respond to AI-generated suggestions, despite pressure from the White House for faster results. Still, the administration maintains confidence in the technology. 'We're exploring all options,' said White House spokesperson Harrison Fields, adding that while nothing is finalized, the DOGE team deserves credit for introducing fresh ideas into government operations. As the deadline approaches, the ultimate impact of DOGE AI remains unclear. But what's certain is that this experiment in algorithmic governance is already reshaping conversations about the future of policymaking in Washington. TAGS: Trump deregulation AI tool, DOGE AI federal rules, US regulation cuts 2025, Technology, Tech News
Indian Express
41 minutes ago
- Indian Express
Elon Musk opens a Tesla Diner in Los Angeles: Here's all you need to know about the retro-futuristic spot that's a peak Tesla tech experience
A humanoid robot serving popcorn on the roof deck, Cybertruck-themed food containers, a drive-in movie theater, and Tesla technology everywhere. Welcome to Tesla Diner & Drive-In, a new hotspot recently opened in Santa Monica, an upscale neighborhood in Los Angeles, California. Opened just last week, the diner is already drawing hundreds of visitors eager to experience the new 'retro-futuristic' restaurant that also serves as a charging station for Tesla EVs, with 80 Superchargers available in its parking lot. Elon Musk, owner of Tesla had been planning the diner since 2018. The Tesla Diner & Drive-In blends the nostalgic charm of a 1950s-style American diner with cutting-edge Tesla innovation. Located on Santa Monica Boulevard, it's open 24/7 and features both indoor and outdoor seating for up to 250 guests. But the Tesla Diner isn't meant to be just another American restaurant. It's been marketed as a 'retro-futuristic' drive-in experience , a place where you can enjoy a burger, watch classic films on giant screens, and charge your Tesla, all at the same time. It is a high-concept diner that combines Tesla technology under one roof. The diner is one of Musk's futuristic projects, though not as ambitious as putting humans on Mars or developing brain implants. Still, it's clear that the LA diner is intended as a clever marketing exercise for Tesla, whose car sales have continued to decline quarter after quarter. You don't need to own a Tesla EV to enjoy a meal at the diner, which helps extend the brand's appeal beyond just Tesla enthusiasts. Many of the customers drawn to the diner have been adults and new parents with babies. As guests enter the diner, they are greeted by servers on roller skates, who roll up offering ice cream samples. The drive-in projector plays the 1960s animated sitcom The Jetsons, a show that presented a vision of the future, complete with flying cars and a robotic housekeeper. Guests can order items from a kiosk at the counter. The menu, created by chef Eric Greenspan, features classic diner staples such as fried chicken and waffles, grilled cheese, and tuna melts, along with special themed items like the 'Tesla Burger' with 'Electric Sauce.' Prices range from $4 for a side of fries to $15 for biscuits and red gravy. The prices are neither too high nor too low but reflect typical LA standards. However, many diners were unimpressed with the food, calling it 'mediocre.' There were also complaints about long lines to enter the diner, which were reportedly caused by a technical glitch. Tesla's branding is visible throughout the diner, reflected in both the decor and overall atmosphere. The restaurant features a 360-degree rooftop, accessible via an all-white curved staircase lined with display cases showcasing robots. The rooftop offers comfortable seating and great views of the movie screens. At the bar is a Diner shop, where guests can purchase $40 Tesla Diner T-shirts and $175 levitating Cybertruck models. Nearby, there is a popcorn stand which is operated by Optimus, Tesla's humanoid robot. As soon as the diner opened in Los Angeles, videos of the place went viral across X, YouTube, and Reddit. Although Elon Musk is a controversial figure and not everyone agrees with what he says, that didn't stop hard-core Tesla fans and the general public from flocking to the retro-futuristic diner in the heart of Hollywood. Many, in fact, showed up in their Cybertrucks, hoping to make use of the brand-new Supercharger site. Should the diner become successful, Elon Musk posted on its social media platform X, the LA Diner will be the first among many. Tesla's swankily retro-infused diner is only available in Los Angeles, but as Musk indicated, he might open more diners around the world if the existing location proves to be a hit with local residents. Tesla is already selling its EVs in India, with its first store recently opened in Mumbai. A store in Delhi is also in the works and could open toward the end of July. Anuj Bhatia is a personal technology writer at who has been covering smartphones, personal computers, gaming, apps, and lifestyle tech actively since 2011. He specialises in writing longer-form feature articles and explainers on trending tech topics. His unique interests encompass delving into vintage tech, retro gaming and composing in-depth narratives on the intersection of history, technology, and popular culture. He covers major international tech conferences and product launches from the world's biggest and most valuable tech brands including Apple, Google and others. At the same time, he also extensively covers indie, home-grown tech startups. Prior to joining The Indian Express in late 2016, he served as a senior tech writer at My Mobile magazine and previously held roles as a reviewer and tech writer at Gizbot. Anuj holds a postgraduate degree from Banaras Hindu University. You can find Anuj on Linkedin. Email: ... Read More
