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Tom’s Hardware
Tom’s Hardware
Technology
Anton Shilov

Samsung inks $16.5 billion Tesla AI chip deal — Elon Musk says Samsung will produce new A16 chips: 'The strategic importance of this is hard to overstate'

Samsung Tesla Inc. Elon Musk Samsung Foundry Texas TSMC Taylor
Tesla.

In an unexpected turn of events, Samsung announced on Monday it had inked a $16.5 billion foundry deal with an unnamed partner, confirmed to be Tesla by Elon Musk, who says the company will produce its next-generation A16 chip. The deal represents a major win for Samsung Foundry, which has been lagging behind TSMC for a while. In addition, the deal is big news for Samsung's fab in Taylor, Texas, where the system-on-chips (SoCs) will be produced.

A major contract

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