Musk says Tesla, Samsung Electronics sign $16.5 billion chip supply deal

Elon Musk revealed that Tesla has signed a $16.5 billion chip supply agreement with Samsung Electronics, aiming to secure a steady flow of advanced semiconductors for its growing electric vehicle production. The deal spans multiple years and includes next-generation chips designed to enhance Tesla’s autonomous driving capabilities and battery management systems. This partnership not only emphasizes Tesla’s aggressive push to control its supply chain amid global chip shortages but also highlights Samsung’s expanding role as a key player in automotive semiconductor manufacturing.