\n<\/p>\n
Samsung has agreed a $16.5bn (\u00a312.3bn) deal to manufacture artificial intelligence chips for Tesla, in a move hailed by Elon Musk on Monday.<\/p>\n
The South Korean tech company announced the contract with an unnamed client in a regulatory filing, with Tesla\u2019s chief executive giving further details on his social media platform, X.<\/p>\n
Musk wrote that Samsung would produce Tesla\u2019s next-generation A16 chips at a new plant in Texas.<\/p>\n
\u201cThe strategic importance of this is hard to overstate,\u201d he wrote.<\/p>\n
In December, the Biden administration announced $4.75bn in funding for Samsung\u2019s semiconductor manufacturing facilities in Texas under the Chips Act, legislation aimed at making the US more self-sufficient in chip manufacturing. At the time, the then US commerce secretary, Gina Raimondo, said the funding would ensure the country had a \u201csteady stream\u201d of chips essential to AI and national security.<\/p>\n
In a post on X on Monday, Musk said Samsung had agree to allow Tesla to \u201cassist in maximising manufacturing efficiency\u201d and he would \u201cwalk the [manufacturing] line personally to accelerate the pace of progress\u201d.<\/p>\n
He added that the Samsung plant in Taylor, outside Austin, Texas, was \u201cconveniently located not far from my house\u201d.<\/p>\n
The deal will help re-energise a project faced long delays amid Samsung\u2019s difficulties in retaining and attracting big clients. Ryu Young-ho, a senior analyst at Seoul-based NH Investment & Securities, said the Taylor plant \u201cso far had virtually no customers\u201d, making the deal \u201cquite meaningful\u201d.<\/p>\n
In October, Reuters reported that Samsung had postponed taking deliveries of chip-making equipment from ASML, a Dutch manufacturer, for the Texas site as it had not yet won any significant customers for the project. It has already delayed the plant\u2019s operational start to 2026.<\/p>\n
Samsung makes Tesla\u2019s AI4 chips, which power the carmaker\u2019s full self-driving driver assistant system. Taiwan\u2019s TSMC is slated to make the AI5 chips for Tesla, initially in Taiwan and then Arizona, Musk has said.<\/p>\n
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Sign up to Business Today<\/span><\/p>\n Get set for the working day \u2013 we’ll point you to all the business news and analysis you need every morning<\/p>\n Privacy Notice: <\/strong>Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.<\/span><\/p>\n after newsletter promotion<\/p>\n The regulatory filing by Samsung announcing the chip supply agreement did not name the client, saying the customer had requested confidentiality about the details of the deal, which will run through the end of 2033.<\/p>\n Samsung has been approached for comment.<\/p>\n Reuters contributed to this article<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Samsung has agreed a $16.5bn (\u00a312.3bn) deal to manufacture artificial intelligence chips for Tesla, in a move hailed by Elon Musk on Monday. The South Korean tech company announced the contract with an unnamed client in a regulatory filing, with Tesla\u2019s chief executive giving further details on his social media platform, X. Musk wrote that<\/p>\n","protected":false},"author":1,"featured_media":12751,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[52],"tags":[6406,4019,696,784,1371,3240,4772,1381],"class_list":{"0":"post-12750","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-technology","8":"tag-16-5bn","9":"tag-chips","10":"tag-deal","11":"tag-hails","12":"tag-musk","13":"tag-samsung","14":"tag-supply","15":"tag-tesla"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/12750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12750"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/12750\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/12751"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}