Samsung and Tesla Sign $16.5 Billion Chip Manufacturing Deal
The South Korean company Samsung Electronics Co. has signed a contract with Tesla Inc. worth $16.5 billion for the manufacturing of chips intended for artificial intelligence.
This was reported by Bloomberg.
The largest company in South Korea announced on Monday that it has entered into a chip manufacturing agreement valued at 22.8 trillion won, which will last until the end of 2033. Tesla's CEO Elon Musk confirmed the Bloomberg report, stating that the new factory in Taylor, Texas, will produce next-generation AI6 chips for Tesla.
Musk clarified that he would oversee the production line and has received authorization from Samsung to assist in optimizing the manufacturing process.
The signing of the contract comes at a time when Samsung is gradually losing ground in semiconductor manufacturing. The company, which produces its own memory chips and semiconductors, is struggling to attract enough orders to fully utilize its production capacity. It has postponed the completion and launch of a new factory in Texas until 2026.
This contrasts with Taiwan Semiconductor Manufacturing Co., the leading chip producer, which still cannot meet the full demand. According to TrendForce from Taipei, TSMC held a dominant share of 67.6% of the global foundry market in the first quarter of this year. Samsung's share dropped to 7.7% from 8.1% in the previous quarter.
