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Europeanmirror > Blog > Europe > Samsung Electronics and Elon Musk’s Tesla ink a €14 Billion Semiconductor Agreement
Europe

Samsung Electronics and Elon Musk’s Tesla ink a €14 Billion Semiconductor Agreement

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Last updated: July 29, 2025 8:07 am
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Published July 29, 2025
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In a post on X, Tesla CEO Elon Musk said that a Samsung factory in Texas will be producing the latest version of a cutting-edge microprocessor for its upcoming vehicles. The agreement is a significant victory for the South Korean tech behemoth, which has lost important customers like Google to rivals like Taiwan Semiconductor Manufacturing Company (TSMC) in recent years due to manufacturing yield and workflow issues.

Musk said in the article, “Samsung agreed to let Tesla help maximize manufacturing efficiency.” “This is a crucial point because I will personally walk the line to quicken the rate of advancement. The AI5 agreement was lost to TSMC, which first produced it in Taiwan and will shortly relocate its manufacturing to a factory in Arizona, despite Samsung already producing the AI4 and having collaborated with Tesla since 2017.

Musk said the $16.5 billion (€14 billion) deal is “just the bare minimum,” according to another post on X. The actual production will probably be several times greater. In addition to Tesla automobiles, the forthcoming AI6 chip is anticipated to drive the development of humanoid robots and be used in AI model training.

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