Tuesday, October 14, 2025

Tech

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Samsung Electronics secures $16.4 billion AI chip deal with Tesla

Samsung Electronics has signed an agreement with Tesla to supply artificial intelligence (AI) semiconductors worth 22.8 trillion won (US$16.4 billion), a major win for the South Korean tech giant’s chip manufacturing business, which has recently faced challenges.

Oman News Agency

info@thearabianstories.com

Monday, July 28, 2025

SEOUL – According to Yonhap News Agency, which cited a regulatory filing by Samsung, the contract covers semiconductor foundry products and is scheduled for completion by December 31, 2033.
The deal represents 7.6 percent of Samsung’s total revenue of 300.9 trillion won in 2024, making it the largest chip order in the company’s history.


Tesla CEO Elon Musk confirmed the agreement on social media, revealing that Samsung will manufacture Tesla’s next-generation AI6 chips at its new semiconductor facility in Texas.
Despite reporting second-quarter operating profits of 4.59 trillion won on sales of 74 trillion won, Samsung’s earnings fell short of market expectations, largely due to weak performance in its foundry and system LSI (large-scale integration) divisions.


However, news of the Tesla deal provided a significant boost to investor confidence. Samsung shares rose 6.83 percent to close at 70,400 won.

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