Samsung’s Taylor, Texas plant will begin producing the A16 chip for new Tesla vehicles and robotaxis in the years ahead.
Samsung has made a major play this week to bolster its chip business in the US with the help of Tesla. The two firms have signed a $16.5 billion deal that will have Samsung’s Taylor, Texas factory produce electric vehicle chips for Tesla’s latest products in a handful of years. That include chips for new electric vehicles and robotaxis.
Elon Musk shared word of the deal’s signing on his social media account while the full details were reported by Reuters.
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 just finished design, initially in Taiwan and then Arizona.
— Elon Musk (@elonmusk) July 28, 2025
The deal is big news for Samsung and its shareholders. While Samsung has remained, operationally, one of the largest chip manufacturers in the world, it has failed to secure new customers, even despite building new plants in the United States, such as the Taylor, Texas factory. This move will seemingly do little to benefit Tesla up front, as it will still be a few years before Tesla gets to vehicles that need the A16.
That said, it looks like Samsung has its footing in new chip manufacturing alongside Tesla for the foreseeable future. Stay tuned to the Samsung topic for more news and updates.
