Tesla Stock- Tesla’s AI6 Chip Production Boosted by Samsung’s Texas Facility

Tesla secures a $16.5B deal with Samsung to produce next-gen AI chips, boosting its self-driving tech roadmap.

28 July 2025, 13:23 published Updated 28 July 2025, 13:23

Tesla Stock- How Tesla’s $16.5B Samsung Partnership Will Revolutionize AI Chip Production

Tesla Stock– Tesla CEO Elon Musk has announced a monumental $16.5 billion chip supply agreement with Samsung Electronics — a deal that will play a crucial role in Tesla’s AI and Full Self-Driving (FSD) technology evolution. This partnership not only solidifies Tesla’s access to cutting-edge chips but also marks a significant leap forward in the company’s goal to dominate autonomous driving.

The news sent Samsung’s stock up nearly 7%, while Tesla shares also climbed 1.7% in premarket trading — a clear signal that investors are bullish on Tesla’s technological roadmap.

Texas Factory to Manufacture Tesla’s Future AI6 Chips

Tesla’s ambitious vision is centered on its next-generation AI6 chip, which Elon Musk confirmed will be produced at Samsung’s new fabrication plant in Taylor, Texas. Musk described this facility as strategically vital to Tesla’s future, emphasizing that its proximity to his home allows him to personally oversee progress and speed up production timelines.

This Texas fab project had previously faced delays, but Tesla’s involvement is breathing new life into it. The AI6 chip will be a critical component in Tesla’s Full Self-Driving system, underpinning Tesla’s efforts to perfect autonomous driving at scale.

Tesla’s AI Chip Roadmap: Beyond AI6

While the AI6 chip is on the horizon, Tesla is already working on the next-generation A15 chip, expected to enter production in late 2026. The AI6 chip will follow, signaling Tesla’s continuous investment in proprietary AI hardware to maintain its competitive edge.

Currently, Samsung produces Tesla’s A14 chips, essential to Tesla’s existing FSD system. Meanwhile, Tesla partners with Taiwan Semiconductor Manufacturing Company (TSMC) for its AI5 chip production, splitting manufacturing between Taiwan and Arizona — showcasing Tesla’s diversified approach to securing chip supply.

Why This Deal is a Game-Changer for Tesla

For Tesla, controlling the supply and innovation of AI chips is paramount. This $16.5 billion contract guarantees Tesla a steady, advanced chip supply for the next decade, fueling rapid improvements in vehicle intelligence and autonomous capabilities.

Elon Musk’s hands-on approach signals how critical this manufacturing partnership is for Tesla’s future. By collaborating closely with Samsung, Tesla aims to scale chip production efficiently and stay ahead in the fiercely competitive self-driving race.

Strategic Timing Amid Global Supply Chain Challenges

The deal’s timing aligns with broader global concerns over semiconductor supply chains and US-South Korea trade negotiations. Tesla’s ability to secure a reliable chip supply amid these uncertainties positions it well to avoid disruptions that have plagued other automakers.

Samsung initially kept Tesla’s identity confidential, highlighting the sensitivity and strategic importance of the partnership within the complex global tech landscape.

What Investors Should Watch for Next

Investors should closely monitor Tesla’s ongoing progress with the construction and operational milestones of the Texas fabrication facility, as well as the detailed rollout timeline for the highly anticipated AI6 chip. These developments are not only crucial for understanding Tesla’s technological capabilities but will also serve as important indicators of how swiftly the company can advance toward achieving full vehicle autonomy. The successful deployment of the AI6 chip will likely enhance Tesla’s Full Self-Driving (FSD) system, enabling more reliable, efficient, and safer autonomous driving features that could set new industry standards.

Moreover, Tesla’s leadership in developing proprietary AI chip technology is poised to become one of its most significant competitive advantages in the rapidly evolving electric vehicle and autonomous driving markets. By owning and controlling its chip design and production, Tesla can optimize performance specifically for its vehicles, reduce dependency on third-party suppliers, and accelerate innovation cycles. This edge could translate into faster adoption rates of Tesla’s autonomous vehicles worldwide, strengthening its market position.