American EV company Tesla has signed a deal with South Korean tech giant Samsung for a multiyear chip deal for US$16.5 billion (~RM69.64 billion). This will see the latter make the former’s A16 chip through to 2033.
Reports initially indicated that Samsung made the announcement without naming its client, apparently citing the latter’s request for confidentiality. Some time after initial reports, Telsa owner Elon Musk made his own announcement on the social media platform that he now owns, X, identifying his EV company as said customer.
Musk’s post also mentions that Samsung will be making the chips via the “giant new Texas fab”. This is likely in reference to the one in Taylor, which the tech giant announced it was building in 2021. In the post, Musk says that the new deal involves Tesla’s new A16 chip, with Samsung already making the A14.
He also claims that the South Korean tech giant has “agreed to allow Tesla to assist in maximising manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house”.
As an aside, Musk also says that TSMC has finished the design for the A15 chip that it would be making for Tesla. Production will initially be done in Taiwan, “and then Arizona“.
(Source: Elon Musk / X [1], [2], Reuters, Bloomberg)
