Tech Desk 
Jul 28, 2025
Samsung Electronics has signed a historic $16.5 billion contract to supply semiconductors to Tesla, marking a significant boost to its struggling foundry business.
This long-term agreement will run through the end of 2033 and is expected to strengthen Samsung's position in the global semiconductor market.
This collaboration represents a significant endorsement of the South Korean tech giant’s advanced 2nm chip manufacturing capabilities and signals a major stride in attracting high-profile clients away from dominant rival TSMC.
According to Tesla CEO Elon Musk, the partnership is significant for Tesla's next-generation AI6 chip production, which will be produced at Samsung's new Texas facility.
It should be noted that the contract is estimated to generate KRW 2.5 trillion annually and is worth KRW 22.76 trillion, which is equivalent roughly 7.6% of Samsung's 2024 revenue.
Beyond its financial value, this long-term agreement represents a strategic win for Samsung as it intensifies efforts to reclaim market share in the logic chip sector, currently led by Taiwan’s TSMC.
According to analysts, Tesla-Samsung deal will be a potential game-changer in the competitive landscape of advanced semiconductor manufacturing.
Following the announcement, investor optimism regarding Samsung's improved position in the global semiconductor market was reflected in the 3.5% increase in the company's shares on the Seoul stock exchange.
