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businesspress > Blog > Business > Elon Musk’s Tesla and Samsung Electronics Agree on a €14 billion Chip Agreement
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Elon Musk’s Tesla and Samsung Electronics Agree on a €14 billion Chip Agreement

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Last updated: July 29, 2025 8:07 am
BusinessPress
Published July 29, 2025
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Elon Musk, the CEO of Tesla, said in a post on X that a Samsung factory in Texas will create the latest version of a cutting-edge semiconductor for its upcoming automobiles. Due to workflow problems and low production yields, the South Korean tech giant lost big clients like Google in recent years to rivals like the Taiwan Semiconductor Manufacturing Company (TSMC). This transaction is a significant victory for the company.

In order to maximize production efficiency, Samsung decided to let Tesla help,” Musk added in the statement. “I will personally walk the line to accelerate the pace of progress, so this is a critical point.

TSMC, which first manufactured the AI5 in Taiwan and will shortly be relocating manufacturing to a factory in Arizona, won the contract from Samsung, which already makes the AI4 and has been collaborating with Tesla since 2017.

Musk says the acquisition is “just the bare minimum” and that it is worth $16.5 billion (€14 billion), according to another post on X. actual output may be several times greater. The future AI6 chip is expected to support the technical development of Tesla’s humanoid robots and be utilised in AI model training, in addition to Tesla’s automobiles.

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