A Tesla Chip Deal Gives Samsung a Much Needed Boost

Here’s an Elon Musk association that’s seen as a good thing. Tesla may be in a sales slump, but its multiyear chip deal with Samsung Electronics is giving the South Korean company a boost.

Samsung will produce artificial intelligence semiconductors for Tesla in a new $16.5 billion pact. The agreement will run through the end of 2033, giving Samsung a much needed win after having steadily lost ground to leading chipmaker TSMC. The plan is for an upcoming plant in Taylor, Texas, to produce Tesla’s next-generation AI6 chip, Musk said on X, confirming a Bloomberg News report. Samsung’s Seoul-traded shares rose 6.8% to their highest since September, while its suppliers like Soulbrain jumped as much as 16%. Musk, 54, will walk the production line himself and has been authorized by Samsung to assist in optimizing production, he said.