July 30, 2025 – Elon Musk took to X yesterday to reveal that the $16.5 billion disclosed by Samsung Electronics in official filings is just the floor for their deal with Tesla. The actual contract value, he hinted, could soar several times higher.
The partnership centers around Samsung’s SF2A process node, a 2nm automotive-grade chip technology slated for mass production at the company’s Taylor, Texas fab in 2027. This extended timeline gives Samsung crucial breathing room to optimize manufacturing yields for the complex process before ramping up AI6 chip production for Tesla.
South Korean business outlet MK Daily traced the deal’s origins in an exclusive report yesterday, uncovering that Tesla had initially approached TSMC about manufacturing the AI6 chips. However, the Taiwanese foundry declined due to fully booked production capacities. The negotiations shifted to Samsung around CES 2025, with both sides finalizing terms last week.
A key sticking point during discussions was Tesla’s insistence on “Made in America” production. The automaker mandated that Samsung fulfill the order through its U.S.-based semiconductor facilities, aligning with Tesla’s supply chain localization strategy amid growing geopolitical tensions.
Industry analysts note the deal marks Samsung’s most significant automotive chip contract to date, while giving Tesla critical access to advanced node technology for its next-generation self-driving systems. The multi-year agreement also positions Samsung’s Texas fab as a pivotal manufacturing hub for North American AI hardware.
