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Tesla and Samsung team up on AI chips

This partnership is a huge vote of confidence in Samsung's advanced chip-making capabilities as it seeks to challenge the dominance of rival TSMC.

byAytun Çelebi
July 28, 2025
in Industry

Elon Musk announced Sunday that Tesla has secured a semiconductor chip supply deal with Samsung Electronics for its AI chips, following Samsung’s earlier disclosure of a $16.5 billion supply agreement.

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.

— Elon Musk (@elonmusk) July 28, 2025

Musk stated on X that Samsung’s new Texas fabrication plant will produce Tesla’s AI6 chip. He noted that Samsung currently manufactures the AI4 chip, while TSMC will produce AI5 chips, initially in Taiwan and later in Arizona, after design completion. Musk also indicated that Samsung will permit Tesla to assist in maximizing manufacturing efficiency at the facility.

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The announcement follows Samsung’s previous acknowledgment of falling behind in the AI chip sector.


Featured image credit

Tags: AIchipSamsungTesla

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