Musk confirms $16.5 billion deal: Samsung to produce semiconductor chips for Tesla
Tesla CEO Elon Musk confirmed on Monday the multibillion-dollar hot deal between Samsung Electronics and Tesla Inc. for supplying semiconductor chips.On Saturday, Samsung inked a $16.5 billion deal with a global client for semiconductor supply but did not reveal the customer's identity, citing confidentiality requirements, as per Bloomberg. The agreement, now confirmed to include Tesla, will remain in effect until the end of 2033.Musk replied on X to a post that claimed the deal, saying, “Yes”.In a separate post, the billionaire wrote, “Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate. Samsung currently makes AI4. TSMC will make AI5, which has just finished design, initially in Taiwan and then in Arizona.”He further added, “Samsung agreed to allow Tesla to assist in maximising manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house”.Musk noted that the $16.5 billion figure is ‘bare minimum’. “Actual output is likely to be several times higher”.
Tesla CEO Elon Musk confirmed on Monday the multibillion-dollar hot deal between Samsung Electronics and Tesla Inc. for supplying semiconductor chips.
On Saturday, Samsung inked a $16.5 billion deal with a global client for semiconductor supply but did not reveal the customer's identity, citing confidentiality requirements, as per Bloomberg.
The agreement, now confirmed to include Tesla, will remain in effect until the end of 2033.
Musk replied on X to a post that claimed the deal, saying, “Yes”.
In a separate post, the billionaire wrote, “Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate. Samsung currently makes AI4. TSMC will make AI5, which has just finished design, initially in Taiwan and then in Arizona.”
He further added, “Samsung agreed to allow Tesla to assist in maximising manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house”.
Musk noted that the $16.5 billion figure is ‘bare minimum’. “Actual output is likely to be several times higher”.
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