Samsung Secures $16.5 Billion Tesla Semiconductor Contract

Samsung Electronics has signed a $16.5 billion agreement to supply artificial intelligence semiconductors to Tesla over the next eight years, marking one of the largest chip manufacturing deals in the automotive industry.

The South Korean technology company disclosed the contract in a regulatory filing Monday, with Tesla CEO Elon Musk confirming the partnership on the social media platform X.

Under the agreement, Samsung's new semiconductor fabrication facility in Texas will be dedicated to producing Tesla's next-generation A-16 chips, which are designed to power the electric vehicle manufacturer's autonomous driving and AI systems.

Musk indicated he would personally oversee production progress at the facility, noting its proximity to his residence.