Tesla Commits $16.5 Billion to Samsung for Advanced Chip Supply
Tesla has entered into a $16.5 billion supply agreement with Samsung Electronics for the production of autonomous driving and AI chips. The multi-year deal will rely on Samsung’s 4-nanometer manufacturing process and will utilize fabrication facilities in both Taylor, Texas, and Hwaseong, South Korea. The chips are intended to power Tesla’s Full Self-Driving (FSD) systems and support its broader AI infrastructure.
Production is scheduled to begin in late 2025 or early 2026, once Samsung’s Texas foundry reaches operational readiness. That site represents a major investment in domestic semiconductor production and is expected to play a key role in supplying Tesla’s future compute needs. (....)