Musk touts Tesla chip deal with Samsung

by Sylvan Lane - 07/28/25 6:38 PM ET

Technology

The Big Story

Musk: New Samsung plant will make Tesla AI chips

Tesla CEO Elon Musk said a new Samsung plant in Texas will be devoted to making the next generation of semiconductors for the electric vehicle (EV) company as it pushes the needle on artificial intelligence (AI).

In a Sunday post on X, the social media platform he purchased in 2022, Musk said Samsung’s new factory will be “dedicated” to making Tesla’s AI6 chip. Musk said he will also be a presence at the factory to “assist” Samsung “in maximizing manufacturing efficiency.”

“This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house,” Musk wrote.

The Hill has reached out to Samsung for comment. The value of the contract is $16.5 billion, according to CNBC.

Tesla’s deal with Samsung could be a major lift for the embattled EV company as it attempts to overcome a serious dip in sales, spurred largely by Musk’s brief alliance with President Trump.

Tesla’s global sales sunk throughout 2025 as Musk led Trump’s Department of Government Efficiency cost-cutting panel. He also spurred backlash to Tesla in Europe by aligning himself with far-right political figures and attacking Ukrainian President Volodymyr Zelensky.

Read more here.

Welcome to The Hill’s Technology newsletter, I’m Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley.

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