Arthur Fuentes

Tesla launches its Super charging station at the Uptown Mall basement in Taguig City on December 11, 2024 along with its ‘experience center’ offering an all-in-one solution for sales, delivery, and service under one roof. Owners can charge their cars at Supercharging stations in the Basement 2 parking of Uptown Mall, exclusively for Tesla vehicles. Jonathan Cellona, ABS-CBN News

Article (news)

Tesla

Agence France-Presse

SEOUL — Tesla CEO Elon Musk said Monday that tech giant Samsung Electronics will provide his company with its next-generation AI6 chips, following the South Korean firm&#x27;s announcement of a $16.5 billion deal.Samsung said Monday it had secured an eight-year agreement, without naming the client, describing it only as a &quot;major global company&quot; in a regulatory filing.Under the deal, the partnership -- effective from last Thursday -- runs through the end of 2033.&quot;Samsung&#x27;s giant new Texas fab will be dedicated to making Tesla&#x27;s next-generation AI6 chip. The strategic importance of this is hard to overstate,&quot; Musk said on X.&quot;Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency,&quot; he added, calling it a &quot;critical point&quot; in striking the deal.&quot;I will walk the line personally to accelerate the pace of progress,&quot; he said, noting Samsung&#x27;s Texas plant was &quot;conveniently located not far from my house&quot;.The deal represents about 7.6 percent of Samsung&#x27;s projected annual sales for 2024, the company said.It declined to confirm the client was Tesla, even after Musk&#x27;s message, citing confidentiality.The agreement is expected to provide a major boost to Samsung, which has faced headwinds in its foundry business, lagging rivals SK hynix and Taiwan&#x27;s TSMC in the race for cutting-edge artificial intelligence chips.Samsung Electronics is the flagship unit of South Korea&#x27;s Samsung Group, by far the largest of the family-run conglomerates that dominate Asia&#x27;s fourth-largest economy.The company said this month that it expected operating profit to fall 56 percent on-year and 31 percent from the previous quarter, citing a slump in its core semiconductor division.Experts have attributed the decline to weaknesses in its foundry operations, which involve contract-based manufacturing of chips designed by other companies.

Samsung said it had secured an eight-year agreement, without naming the client, describing it only as a "major global company" in a regulatory filing.

Samsung said it had secured an eight-year agreement, without naming the client, describing it only as a "major global company" in a regulatory filing.

Tesla taps Samsung for AI6 Chips in $16.5 billion deal, Elon Musk says

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Tesla taps Samsung for AI6 Chips in $16.5 billion deal, Elon Musk says

Agence France-Presse

Published Jul 28, 2025 08:25 PM PHT

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