Tesla CEO Elon Musk announced a $16.5 billion deal with Samsung Electronics to source chips for the automaker, boosting Samsung's contract manufacturing business. The deal caused Samsung's shares to surge, and Tesla's shares also saw an increase. The agreement involves Samsung's new chip factory in Texas producing Tesla's next-generation AI6 chip, with Musk personally involved in maximizing manufacturing efficiency. The deal is significant for Samsung as it secures a major customer for its Texas fab, which had previously struggled to attract clients. The partnership aims to address Samsung's challenges in the competitive chip market and could help reduce losses in its foundry business.
Source: https://www.cnn.com/2025/07/28/business/tesla-samsung-chip-deal