Samsung Secures $16.5 Billion Chip Deal with Tesla
Landmark Agreement Boosts Samsung Foundry, Supports Tesla's Expansion
Samsung Electronics has announced a significant $16.5 billion contract to manufacture semiconductor chips for Tesla. The deal, spanning several years, aims to bolster Tesla’s in-house chip production and provides a much-needed boost to Samsung's foundry division. This partnership signals a shift in automotive chip sourcing.
- Foundry division revitalized.
- Tesla expands chip production.
- Automotive sector impact.
- Samsung strengthens position.
The agreement, revealed Tuesday, will see Samsung manufacture chips for Tesla's vehicles, including autonomous driving processors. Production is expected to begin in 2024. The location of manufacturing facilities hasn't been disclosed, but is expected to be within Samsung’s global network.
The $16.5 billion investment covers multiple chip types over several years. This includes chips for autonomous driving, infotainment systems, and other vehicle functions. The deal is structured to provide Tesla with a stable chip supply. Initial reports suggest a focus on 4nm and 3nm process nodes.
This contract represents a substantial win for Samsung, addressing concerns over its foundry business performance. It also allows Tesla to reduce reliance on external chip suppliers, increasing control over its technology roadmap. The deal highlights the growing demand for in-house chip production in the automotive industry.