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Musk Says Tesla, Samsung Sign $21b Chip Deal
The Straits Times
|July 29, 2025
Tesla chief executive Elon Musk said the US automaker has signed a US$16.5 billion (S$21 billion) deal to source chips from Samsung Electronics, a move expected to bolster the South Korean tech giant's loss-making contract manufacturing business.
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SEOUL -
Samsung shares rallied to close 6.8 per cent higher after the news.
"Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation A16 chip. The strategic importance of this is hard to overstate," Mr Musk said in a post on X on July 28.
If Mr Musk was referring to Samsung's upcoming Taylor, Texas, plant, the deal could revive the project that has faced delays amid Samsung's struggles to retain and win major customers.
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