South Korea’s Samsung Electronics Company, the world’s largest memory chip maker, has signed a major contract with US battery electric vehicle (BEV) manufacturer Tesla Inc for the supply of next-generation AutoPilot “AI6” chipsets, according to unconfirmed reports in South Korea.
Samsung confirmed in a regulatory filing that it has signed an eight-year contract worth US$ 16.5 billion for the supply of its latest 2nm (nanometer) chipset, without revealing the name of the client due to a confidentiality agreement.
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Tesla’s CEO, Elon Musk, however, issued a separate statement claiming that Tesla has entrusted the South Korean company with a contract to supply its next-generation artificial intelligence AI6 chipset. Elon Musk stated on his X platform: “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.”
The deal represents a major boost for Samsung’s struggling foundry business, which has lost significant ground to global competitor TSMC over the years.
Samsung has been building a new fab in Taylor, Texas, since 2022 with a planned investment of US$ 18 billion, but completion has been delayed due to a lack of orders. The deal with Tesla is expected to allow Samsung to complete the project, which is now scheduled to become operational in 2026.
Samsung warned investors to remain cautious, after its share price rose almost 7% on the news, saying “since the main contents of the contract have not been disclosed due to the need to maintain business confidentiality, investors are advised to invest carefully, considering the possibility of changes or termination of the contract.”
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