Samsung Foundry Signs $16.5 Billion Deal With Tesla To Make AI Chips

Group 1 - Samsung Electronics has signed a multiyear deal worth 22.8 trillion won ($16.5 billion) with Tesla to manufacture AI chips [1][3] - The agreement will run through the end of 2033 and is expected to significantly benefit Samsung's struggling contract chipmaking business [3][4] - Shares of Samsung surged nearly 7% following the announcement of the deal [3] Group 2 - Tesla is collaborating with Samsung to produce the next-generation AI6 inference chip, intended for humanoid robots, self-driving cars, and AI data centers [2] - The chip will be manufactured at Samsung's Texas facility, which is set to begin operations in 2026 [2] - Samsung's foundry business has been facing challenges, including a projected 56% decline in second-quarter operating profit to approximately 4.6 trillion won [5] Group 3 - Samsung's contract chip manufacturing business has been losing market share to Taiwan Semiconductor Manufacturing Company (TSMC), which held a 67% share of the global foundry industry in Q4 2024, while Samsung had only 8% [4] - The company anticipates a narrowing of operating losses in its contract chip manufacturing segment in the second half of the year due to a gradual recovery in demand [6] - Samsung aims to start mass production of chips using its 2-nanometer process technology, with potential clients including Qualcomm and Japan's Preferred Networks [6]