What do you get when Tesla meets Samsung? A $16.5 billion game-changer.
Samsung just inked a huge deal to produce Tesla’s next-gen AI6 chips at its plant in Taylor, Texas — and Elon Musk couldn’t be happier.
“The strategic importance of this is hard to overstate,” he posted on X, adding that he’ll personally walk the manufacturing line to speed things up.
That’s not just hands-on leadership — it’s Elon-style micromanagement.
The move comes as the Biden administration pours billions into U.S. chip production via the CHIPS Act.
Samsung, already making Tesla’s AI4 chips, had been struggling to fill orders at the Texas facility.
What’s The Impact?
Now, with this long-term Tesla contract locked in through 2033, it’s back in the game.
“This is quite meaningful,” said NH Investment’s Ryu Young-ho, noting the plant “had virtually no customers” before.
Forrester analyst Alvin Nguyen added, “It’s a win-win — Samsung gets a major client, and Tesla simplifies its U.S.-based chip supply.”
Still, Samsung kept Tesla’s name out of its regulatory filing, citing confidentiality.
But Musk was never one to keep secrets — especially when the factory is just down the road from his house.
Silicon Valley? More like Silicon Suburb.
