Musk says Tesla, Samsung entered $16.5B chip supply contract

Elon Musk confirmed in an X post on Sunday that Samsung Electronics has inked a $16.5 billion contract to supply semiconductors to Tesla. It is set to run through 2033.

Tesla’s upcoming AI6 chip will be manufactured at Samsung’s new Texas fab, with Musk calling the partnership “strategically critical.”

The news pushed Samsung’s shares up over 6%, reaching their highest level since September 2024.

While the South Korean tech giant didn’t reveal Tesla’s name in its regulatory filing, the deal is significant for Samsung’s foundry business, which manufactures chips. 

Globally, Samsung is the second largest, next to Taiwan Semiconductor Manufacturing Company (TSMC).

With demand for AI chips surging, the Samsung–Tesla partnership could shift the balance of power in the global semiconductor market.