Samsung will produce AI6 semiconductors, the next-generation chip, for Tesla’s self-driving mode and other projects.

Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate. Samsung currently makes AI4. TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.

Tesla Chief Executive Officer (CEO) Elon Musk said he discussed the details of a recent semiconductor supply deal with Samsung Electronics Chairman, Lee Jae-yong. In a response to a user's comment on his X account on Tuesday (U.S. time) that Samsung Electronics "has no idea what they signed up for," Musk replied, "They do.”