TESLA SIGNS $16.5 BILLION CHIP SUPPLY DEAL WITH SAMSUNG TO SECURE FUTURE VEHICLE COMPUTING

5 billion semiconductor supply agreement with Samsung Electronics, signaling a long-term strategic partnership aimed at securing high-performance chips critical to the future of electric vehicles, full self-driving (FSD), and next-generation infotainment systems.

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The deal marks one of the largest automotive chip supply contracts to date and highlights the increasing convergence between EV manufacturing and advanced computing.

The multiyear agreement will see Samsung produce Tesla's custom-designed chips using advanced 4-nanometer and 5-nanometer fabrication processes, making it a cornerstone of Tesla's roadmap for smarter, more autonomous vehicles. The deal underscores how chip manufacturing capacity has become a central focus for automakers seeking to stay competitive in the Al-powered vehicle era.

SECURING SEMICONDUCTORS IN A TIGHT SUPPLY CHAIN

Global chip shortages over the last three years exposed the vulnerability of the automotive industry's supply chain, with many manufacturers forced to delay production or scale back features due to a lack of critical components. Tesla, which has taken an increasingly vertically integrated approach to hardware and software, is moving to lock in capacity as demand for computational power in vehicles continues to grow.