Samsung and Tesla Forge $16.5 Billion Chip Partnership

In a groundbreaking announcement, Tesla CEO Elon Musk confirmed that Samsung Electronics' upcoming fabrication facility in Texas will be solely dedicated to manufacturing Tesla's advanced AI6 chip. This revelation puts an end to speculation surrounding Samsung's undisclosed $16.5 billion semiconductor contract.

Collaboration to Enhance Manufacturing Efficiency

Musk emphasized the collaborative nature of the deal, noting Samsung's openness to Tesla's input on optimizing production processes. "I will personally oversee the progress to ensure we're moving at an unprecedented pace," Musk stated on X, highlighting the convenience of the fab's proximity to his residence.

TSMC to Produce Predecessor AI5 Chip

Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) has been entrusted with the production of the AI5 chip, which Musk revealed has just completed its design phase. Initial production will commence in Taiwan, with plans to transition operations to TSMC's Arizona plant in the future.