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