Samsung Electronics has secured a ₩22.76 trillion (~$16.5 billion) contract to manufacture advanced 2-nanometer semiconductors, according to a regulatory filing by the South Korean tech firm. While Samsung has not officially named Tesla in its filing, it has revealed that the deal is with a “large global company”.
To follow up, Elon Musk confirmed on X that Samsung’s upcoming foundry in Taylor, Texas, will be “dedicated to making Tesla’s next-generation AI6 chip”, following Samsung’s current production of AI4 chips and TSMC’s upcoming AI5 chip.
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
“Samsung agreed to allow Tesla to assist in maximising manufacturing efficiency,” Musk wrote in another post, stating that he will “walk the line personally to accelerate the pace of progress”.
The order is the largest ever for Samsung Foundry and reportedly accounts for 7.6% of the company’s total revenue in 2024. The company anticipates completing the contract by the end of 2033.
Although the Texas foundry is still under construction, the order signals a long-term bet on US-based chip manufacturing. The move is also seen as part of Tesla’s vertical integration strategy to secure an in-house AI chip supply for its autonomous driving.
Shares of Samsung Electronics have risen to ₩70,000 following the announcement. The deal will provide a significant boost to Samsung’s foundry business, which has struggled to compete with TSMC in the advanced node segment.
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