Samsung Lands US$16.5B Chip Contract With Elon Musk's Tesla

TaiwanPlus News

Tesla has awarded a US$16.5 billion contract to Samsung to produce its next-generation AI-6 chips at a new facility in Texas. Tesla boss Elon Musk says the current AI-5 chips will continue to be made by TSMC in Taiwan and Arizona. The switch to Samsung marks a significant boost for the Korean company’s foundry business, which has recently lost ground to rivals SK Hynix and TSMC.

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00:00Elon Musk says a new $16.5 billion U.S. contract to make chips for his company Tesla has gone to Korean electronics giant Samsung.

00:10Musk says that Tesla's AI-5 chip will be made by TSMC in Taiwan and in Arizona,

00:15while its next-generation AI-6 chip will be made by Samsung at its new fab in Texas.

00:21It's a boost to Samsung's faltering foundry business, which has lost market share to competitors like SK Hynix and TSMC.

00:28It also comes as South Korea seeks to reach a trade deal with the U.S. to avoid tariffs that could take effect this week.

00:35Samsung's shares were up 4% in midday trading on this news.

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