TSLA433.450-11.55%
GM76.4401.15%
F11.980-0.07%
RIVN13.950-0.13%
CYD48.5201.06%
HMC24.1100.135%
TM181.670-2.13%
CVNA73.710-2.52%
PAG169.030-4.23%
LAD275.300-11.37%
AN195.360-5.12%
GPI336.140-12.46%
ABG193.680-3.81%
SAH78.580-2.24%
TSLA433.450-11.55%
GM76.4401.15%
F11.980-0.07%
RIVN13.950-0.13%
CYD48.5201.06%
HMC24.1100.135%
TM181.670-2.13%
CVNA73.710-2.52%
PAG169.030-4.23%
LAD275.300-11.37%
AN195.360-5.12%
GPI336.140-12.46%
ABG193.680-3.81%
SAH78.580-2.24%
TSLA433.450-11.55%
GM76.4401.15%
F11.980-0.07%
RIVN13.950-0.13%
CYD48.5201.06%
HMC24.1100.135%
TM181.670-2.13%
CVNA73.710-2.52%
PAG169.030-4.23%
LAD275.300-11.37%
AN195.360-5.12%
GPI336.140-12.46%
ABG193.680-3.81%
SAH78.580-2.24%

Tesla and Samsung ink $16.5B chip supply deal for next-gen AI chips

This significant deal represents the growing overlap between the automotive and semiconductor industries.
Tesla

Tesla has signed a $16.5 billion contract with Samsung Electronics to supply next-generation AI chips, marking a major step forward for Samsung’s struggling U.S. foundry business and bolstering Tesla’s future in self-driving and AI-powered technologies. The chips, designated AI6, will be produced at Samsung’s upcoming facility in Taylor, Texas, and will support Tesla’s advancements in robotics, autonomous driving, and AI data centers. Elon Musk confirmed the partnership and emphasized Tesla’s hands-on involvement to boost efficiency. The contract runs through 2033 and is one of the largest chip supply deals in recent years.

Here’s why it matters:

This long-term chip agreement between Tesla and Samsung holds major implications for both companies and the auto and tech sectors. For Tesla, it ensures a critical supply of advanced chips as demand for AI and autonomous vehicle technologies grows. For Samsung, the deal provides much-needed validation and revenue for its U.S.-based foundry business, which has lagged behind rivals like TSMC. This deal signals Tesla’s continued investment in proprietary AI technologies that may influence future vehicle capabilities, features, and production strategies. Additionally, it reflects the growing overlap between automotive and semiconductor industries, underscoring the importance of secure tech supply chains in vehicle development.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

Key takeaways:

  • $16.5 billion deal secures chip supply through 2033
    Tesla and Samsung’s contract covers a decade-long chip supply arrangement, positioning Tesla to support future AI systems in self-driving vehicles and robotics.
  • AI6 chips to be made in Texas
    The chips will be manufactured at Samsung’s new facility in Taylor, Texas, set to begin operations in 2026, adding strategic geographic value close to Tesla’s operations.
  • Samsung’s foundry business gets a critical boost
    With its share of the global foundry market dropping to 7.7%, this deal helps Samsung offset losses and reestablish relevance in the competitive semiconductor space.
  • Tesla to be directly involved in production
    Elon Musk announced Tesla will help maximize manufacturing efficiency at the fab, even committing to personally oversee progress to accelerate timelines.
  • AI and automotive integration continues to deepen
    Tesla’s investment in advanced chips underscores the expanding convergence of tech and mobility. Dealers and consumers should anticipate future vehicles featuring more sophisticated AI-driven features and services.
Read More
More from Articles
New-vehicle prices rose in April, but the gains fell short of the historical average, with wide variation across brands and segments, according to Kelley Blue Book.

New-vehicle prices rise in April, but the pace is cooling

- May 13, 2026
On the Dash: New-vehicle ATP rose 1.8% year over year in April, below the 3.6% long-term average. Ford and GM posted strong gains while several luxury brands saw transaction prices...
Toyota launches all-electric campaign focused on everyday usability and skeptical EV buyers

Toyota launches all-electric campaign focused on everyday usability and skeptical EV buyers

- May 13, 2026
On the Dash: Toyota is shifting EV messaging toward practicality, lifestyle integration, and first-time EV adoption. Multicultural marketing remains a major focus as automakers refine customer acquisition strategies. Dealers may...
Getting more buyers across the finish line

Getting more buyers across the finish line

- May 13, 2026
Every car shopping journey has its highs and lows. On the positive side, it’s fun to do test drives and it’s exhilarating to drive off the lot in a new...
PalmEasy Motors acquires Matt Blatt CDJR in Philadelphia from Greenblatt family

PalmEasy Motors acquires Matt Blatt CDJR in Philadelphia from Greenblatt family

- May 12, 2026
Robert Palmese and Ahmed Fayed have acquired Matt Blatt Chrysler-Dodge-Jeep-Ram in Philadelphia from the Greenblatt family's Matt Blatt Auto Group, marking the buyers' first franchised dealership. The transaction closed on...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.