Samsung: Billion dollar deal with Tesla for AI chips agreed, share price rises

Samsung currently produces the AI4 and also supplies it to Tesla. The successor, the AI5, will be manufactured for Samsung by Taiwanese competitor TSMC ; it has just completed its development. This chip will initially be manufactured in Taiwan and later in Arizona. Tesla needs the AI chips for the software that will enable autonomous driving.

Samsung has lost importance in chip production and is struggling with declining profits. South Korea's largest electronics company manufactures both its own memory chips and semiconductors for customers and is struggling, especially in contract manufacturing, to secure enough orders to fully utilize its capacities. The completion and commissioning of its new factory in Texas, for example, was recently postponed to 2026.