Tesla announces $20 trillion chip deal with Samsung to manufacture Tesla's next-generation AI6 chips in Texas through the end of 2033
Tesla CEO Elon Musk announced that the company has signed a multi-year contract with Samsung to manufacture chips for its next-generation autonomous driving hardware. The contract runs until the end of 2033 and is worth 22,764,764,160 million won (approximately 2.43 trillion yen).
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.
— Elon Musk (@elonmusk) July 28, 2025
Samsung currently makes AI4.
TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.
Samsung bags $16.5B next-gen chip build contract with Tesla • The Register
https://www.theregister.com/2025/07/28/samsung_tesla_chip_deal/
According to Musk, Samsung will manufacture the chips, called 'AI6,' at a new factory under construction in Taylor, Texas. The contract runs from July 24, 2025, to December 31, 2033, and is worth more than 22 trillion won.
According to related materials, AI6 will integrate hardware for vehicles, robots, and data centers based on the chip design of Tesla's AI training supercomputer, ' Dojo .' Samsung already manufactures Tesla's main chip, known as 'AI4,' but the next generation, 'AI5,' was outsourced to Samsung's rival, TSMC. Musk suggested that the reasons for returning AI6 production to Samsung included Samsung's willingness to incorporate Tesla's opinions and the fact that the Texas factory is close to Musk's home, and he declared that he would personally visit the factory to inspect it.
Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency.
— Elon Musk (@elonmusk) July 28, 2025
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 😃
Musk also pointed out that the contract amount is a minimum estimate and that the actual amount is likely to be double that.
The $16.5B number is just the bare minimum. Actual output is likely to be several times higher.
— Elon Musk (@elonmusk) July 28, 2025
Samsung also disclosed the details of the contract, but did not name Tesla, stating, 'In accordance with the other party's request for confidentiality, we will disclose the contract name, the other party, and the main terms and conditions on the first business day after the end of the confidentiality period.' According to Samsung, revenue from this contract is equivalent to 7.6% of the company's annual revenue.
public-disclosure-view | GLOBAL
https://www.samsung.com/global/ir/reports-disclosures/public-disclosure-view.84435/
Following the announcement, Samsung's stock price on the Seoul Stock Exchange rose 6.8%, hitting its highest level since September. Materials makers such as Soulbrain also saw gains, and Tesla shares rose about 1% from the previous day.
Samsung's new factory in Taylor, Texas, is scheduled to begin operations in 2026.
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