Samsung and Tesla reached a chip manufacturing agreement, Musk says Texas factory will produce AI6 chips.

In the newly reached $16.5 billion agreement, Samsung Electronics will produce semiconductors for Tesla, boosting its underperforming foundry business. Samsung Electronics announced on Monday that it had reached a $22.8 trillion won chip production agreement with a customer, which will last until the end of 2033. According to an anonymous source, Tesla is the customer, and the company has already had business dealings with Samsung's chip foundry department. With this news, Samsung's stock price rose by 3.5% in Seoul, marking the largest intraday gain in nearly four weeks. Musk later confirmed the report on the X platform and also stated in another post, "Samsung's factory in Texas will produce Tesla's next-generation AI6 chip, while Samsung is currently producing the AI4 chip," and mentioned that "TSMC will first produce the newly designed AI5 chip in Taiwan, and then in Arizona." Samsung not only produces memory chips independently but also provides semiconductor foundry services for customers. However, its market share in the chip production field has been declining, making it difficult to obtain sufficient orders to fully utilize its foundry capacity.