Elon Musk Hints at Expanding Business with Samsung: "$16.5 Billion Is Just the Minimum"

"Tesla AI Chips to Be Produced at Samsung Electronics' U.S. Plant"

Elon Musk, CEO of Tesla, has hinted at expanding business with Samsung Electronics. He stated that the $16.5 billion (approximately 22.8 trillion won) contract signed with Samsung Electronics’ foundry (semiconductor contract manufacturing) division represents only the "minimum level."

On July 27 (local time), CEO Musk commented in a post on social media platform X (formerly Twitter), replying to another user, "The $16.5 billion is just the minimum amount," and added, "The actual production volume is likely to be several times higher." Earlier that day, Samsung Electronics had announced a contract for semiconductor contract manufacturing worth 22.7647 trillion won. The contract period runs from July 24 this month to December 31, 2033, making it a long-term contract of eight years and five months.

In a previous post, he stated, "Samsung Electronics’ new plant in Texas will be dedicated to producing Tesla’s next-generation AI6 chips," emphasizing, "The strategic importance of this plant cannot be overstated." He also explained that Samsung Electronics is currently developing the AI4, while TSMC has completed the design of the AI5 and has begun production in Taiwan, with plans to manufacture it at its Arizona plant in the United States in the future. The next-generation AI6 chip is the subject of this contract.

In another post, CEO Musk said, "Samsung Electronics has allowed Tesla to maximize manufacturing efficiency, which is extremely important," adding, "I will visit the site in person to accelerate the progress."