Tesla signs $16.5 billion chip contract with Samsung Electronics
The Samsung-Tesla deal comes at a sensitive time as South Korea is trying to reach a trade deal with the US after the Trump administration’s stated intention of imposing 25% tariffs.
Samsung Electronics has entered into a USD 16.5 billion contract for supplying semiconductors to Tesla.
The South Korean company, which stated that the effective starting date of the contract was July 26, 2025, in its filing, did not mention the name of the counterparty, according to a report by CNBC.
However, Tesla CEO Elon Musk later confirmed that Tesla was the counterparty in a reply on his social media platform, X.
Sources also confirmed to Reuters that Tesla was the customer for the deal.
Interestingly, Samsung earlier stated that details of the deal will not be disclosed until the end of 2033.
“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, according to the CNBC report.
The Samsung-Tesla deal comes at a sensitive time as South Korea is trying to reach a trade deal with the US after the Trump administration’s stated intention of imposing 25% tariffs.
According to Bloomberg Intelligence, Samsung new contract may trigger a recovery in its foundry business’ 2-nanometer generation chip production and boost the company’s foundry sales by 10% annually.
