Tesla’s next-generation AI6 chip will likely be produced at Samsung’s new semiconductor fabrication plant in Taylor, Texas
In sum – what to know:
The A16 chip – Tesla has dedicated $16.5 billion to Samsung Electronics for manufacturing of its next-gen AI6 chip, a crucial part for its autonomous autos and robotics.
Foundary comeback – The deal helps revive Samsung’s struggling foundry enterprise, and offers the long-delayed Taylor fab its first main anchor shopper.
Tesla has struck a landmark $16.5 billion chip provide settlement with Samsung Electronics, with customized AI chip manufacturing slated for Samsung’s new semiconductor fabrication plant in Taylor, Texas. The multi-year deal, confirmed by Tesla CEO Elon Musk and revealed following a regulatory submitting from Samsung, runs by way of December 31, 2033 and facilities on Tesla’s next-generation AI6 chip — a crucial part within the firm’s autonomous car and robotics methods.
Musk famous that Samsung will enable Tesla to collaborate on optimizing manufacturing effectivity on the Taylor fab, joking that he’ll be concerned personally because the plant is “conveniently situated not removed from my home.”
This partnership marks a significant win for Samsung’s foundry enterprise, which has confronted stiff competitors and shopper attrition amid mounting losses. Analysts estimate the unit misplaced greater than 5 trillion gained (~$3.6 billion) within the first half of 2025 alone. The Tesla deal, which despatched Samsung shares hovering by 6–7%, may function a pivotal anchor for the long-delayed Taylor facility — beforehand missing high-profile purchasers and struggling to achieve traction.
Samsung already manufactures Tesla’s AI4 chip, which powers the Full Self-Driving system. Its AI5 chip, in the meantime, is being produced by TSMC in Taiwan and is slated for future manufacturing in Arizona. The brand new AI6 chip will additional deepen the automaker’s reliance on customized silicon for its real-time decision-making platforms.
The timing of the announcement additionally underscores intensifying efforts to spice up U.S. semiconductor self-sufficiency, supported by the CHIPS and Science Act, signed into legislation by President Biden in 2022. The legislation earmarks $52.7 billion for American semiconductor R&D, manufacturing, and workforce improvement, together with $39 billion in manufacturing subsidies and $13.2 billion for innovation and coaching. It additionally supplies a 25% tax credit score for corporations making capital investments in home semiconductor tools and amenities.
The Tesla–Samsung deal aligns intently with these nationwide goals. Not solely does it deepen industrial ties between the U.S. and South Korea, nevertheless it additionally bolsters American onshore chipmaking capability at a time when Washington seeks to scale back reliance on international fabs — significantly in Taiwan and China.
Samsung strengthened this dedication at its seventh annual Samsung Foundry Discussion board (SFF) in 2023, the place the corporate laid out a mission centered on scaling superior semiconductor manufacturing to help the rise of AI-driven workloads. The Tesla AI6 chip contract represents a significant step towards realizing that imaginative and prescient, positioning Samsung’s U.S. operations as a aggressive different to TSMC and different international foundry leaders.
