Agency Of Income
  • World News
  • Stocks
  • Business
  • Politics

Agency Of Income

  • World News
  • Stocks
  • Business
  • Politics
Business

Elon Musk confirms Tesla has signed a $16.5 billion chip contract with Samsung Electronics

by admin July 28, 2025
July 28, 2025
Elon Musk confirms Tesla has signed a $16.5 billion chip contract with Samsung Electronics

Samsung Electronics has entered into a $16.5 billion contract for supplying semiconductors to Tesla, based on a regulatory filing by the South Korean firm and Tesla CEO Elon Musk’s posts on X.

The memory chipmaker, which had not named the counterparty, mentioned in its filing that the effective start date of the contract was July 26, 2025 — receipt of orders — and its end date was Dec. 31, 2033.

However, Musk later confirmed in a reply to a post on social media platform X that Tesla was the counterparty.

He also posted: “Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate. Samsung currently makes AI4.TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.”

“Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress,” Musk said on X, and suggested that the deal with Samsung could likely be even larger than the announced $16.5 billion.

Samsung earlier said that details of the deal, including the name of the counterparty, will not be disclosed until the end of 2033, citing a request from the second party “to protect trade secrets,” according to a Google translation of the filing in Korean on Monday.

“Since the main contents of the contract have not been disclosed due to the need to maintain business confidentiality, investors are advised to invest carefully considering the possibility of changes or termination of the contract,” the company said.

The company’s shares rose over 6% in trading on Monday to reach their highest level since September 2024.

Tesla was a probable customer, Ray Wang, research director of semiconductors, supply chain and emerging technology at The Futurum Group, told CNBC before Musk’s post. Bloomberg News had earlier reported that Samsung’s deal was with Tesla, citing a source.

Samsung’s foundry service manufactures chips based on designs provided by other companies. It is the second largest provider of foundry services globally, behind Taiwan Semiconductor Manufacturing Company.

The company stated in April that it aimed to commence 2 nanometer mass production in its foundry business and secure major orders for the next-generation technology. In semiconductor technology, smaller nanometer sizes signify more compact transistor designs, which lead to greater processing power and efficiency.

Local South Korean media outlets have also reported that American chip firm Qualcomm could place an order for chips manufactured using Samsung’s 2 nanometer technology.

Samsung, which is set to deliver earnings on Thursday, expects its second-quarter profit to more than halve. An analyst previously told CNBC that the disappointing forecast was due to weak orders for its foundry business and as the company has struggled to capture AI demand for its memory business.

The company has fallen behind competitors SK Hynix and Micron in high-bandwidth memory chips — an advanced type of memory used in AI chipsets.

SK Hynix, the leader in HBM, has become the main supplier of these chips to American AI behemoth Nvidia. While Samsung has reportedly been working to get the latest version of its HBM chips certified by Nvidia, a report from a local outlet suggests these plans have been pushed back to at least September.

This post appeared first on NBC NEWS

previous post
Rubio downplays 2028 talk, touts Vance as Trump’s successor
next post
Key Trump nominees stalled by Senate Dems puts pressure on GOP leaders

Related Posts

Orange juice importer says Brazil tariffs will squeeze...

July 22, 2025

Boeing delivers most airplanes since late 2023 after...

July 9, 2025

DOJ seizes record $225 million in crypto tied...

June 19, 2025

U.S. online stores put ‘out of stock’ signs...

June 11, 2025

The charm of watching movies in theaters is...

September 25, 2025

Apple sues former Vision Pro employee for allegedly...

July 2, 2025

E.l.f. Beauty to acquire Hailey Bieber skin care...

June 2, 2025

Cracker Barrel assures customers its values remain the...

August 26, 2025

Trump says U.S. will impose new tariffs on...

September 29, 2025

Keurig Dr Pepper to buy Peet’s Coffee owner...

August 25, 2025

    Get free access to all of the retirement secrets and income strategies from our experts!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Newsom and Harris both position themselves as potential 2028 White House contenders

    • Federal workers brace for missed paycheck as shutdown enters 5th week

    • Hamas says it will hand over another hostage body, as Trump’s 48-hour warning looms

    • Hamas hands over hostage’s body to Israel as Trump’s 48-hour warning nears

    • Shutdown crushes small business owners as losses hit billions — industry leaders beg Congress for ‘clean CR’

    • Progressive power players rally voters for Zohran Mamdani as early voting kicks off in NYC mayoral race

    Categories

    • Business (173)
    • Politics (20)
    • Stocks (112)
    • World News (706)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: AgencyOfIncome.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 agencyofincome.com | All Rights Reserved