Samsung wins $16.5 billion deal to make Tesla's A16 chips

Samsung has secured a $16.5 billion deal to manufacture Tesla's next-generation A16 chip. The deal, which will run through 2033, will utilize an upcoming plant in Taylor, Texas. This agreement marks a significant turnaround for Samsung, as it had previously delayed the opening of the Texas factory due to a lack of customers. The strategic importance of this deal is emphasized by Elon Musk, who stated that Samsung's new Texas facility will be dedicated to producing Tesla's AI6 chip. This comes after Tesla's previous chip, the A15, was produced by Samsung's competitor, Taiwan Semiconductor Manufacturing Company (TSMC). Under the terms of the agreement, Tesla will have a significant level of involvement in the manufacturing process, with Musk stating that he will personally "walk the line" to accelerate the pace of progress. This collaboration between the two companies aims to maximize the efficiency of the manufacturing process.