Samsung and Tesla have signed a $16.5 billion chip supply agreement extending through 2033. According to Bloomberg, the South Korean tech giant will manufacture next-generation artificial intelligence (AI) chips for Tesla at its factory in Texas.
Tesla already sources AI4 chips from Samsung, and under this new deal, Samsung will also supply the company with more advanced AI6 chips. Meanwhile, the production and supply of Tesla’s AI5 chips have been assigned to Taiwan’s leading semiconductor manufacturer, TSMC.
Currently, Samsung is losing market share in the global microchip industry. In the first quarter of 2025, Samsung’s market share stood at 7.7%, a 0.4% decrease compared to the previous quarter. In contrast, TSMC held a dominant 67.6% share during the same period. Experts note that Samsung is facing underutilized production capacity and a shortage of orders. The partnership with Tesla could help Samsung attract additional clients and strengthen its market position.
At the same time, Tesla’s financial performance has seen a decline. In the second quarter of 2025, the company’s net profit dropped 16% year-over-year to $1.17 billion, while total revenue fell 12% to $22.5 billion.
This agreement holds strategic importance for both companies: Samsung aims to expand its technology manufacturing capabilities, while Tesla seeks to enhance the technological sophistication of its products through next-generation AI chips.
