Tesla CEO Elon Musk announced that the company has entered a supply agreement with Samsung Electronics for semiconductor chips, detailing plans for production at a new Texas facility.
Samsung had revealed a $16.5 billion supply deal on Saturday without disclosing the partner, which is now confirmed to be Tesla. This development follows Samsung’s admission last year regarding its lag in the competitive AI chip market.
Musk specified that Samsung’s new Texas factory will focus on producing Tesla’s next-generation AI6 chip, emphasizing its strategic significance. He noted that Samsung currently makes AI4, while TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona. “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,” Musk stated on Twitter.
He further stated that Tesla will collaborate with Samsung to improve manufacturing efficiency, highlighting his personal involvement in the process. “This is a critical point, as I will walk the line personally to accelerate the pace of progress,” Musk mentioned, adding that the factory is conveniently located near his residence.
Representatives for Samsung did not respond to inquiries from Axios late Sunday regarding the agreement.
