[News Today] Samsung to produce Tesla’s AI chips

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Samsung Electronics landed a massive deal to produce next-gen AI chips for Tesla.

Worth some 23 trillion won, this agreement could provide a springboard for the Korean tech giant to shoot up to the top spot and secure other global clients.

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A fully autonomous vehicle that can move on its own.

Even humanoid robots that resemble humans.

Samsung Electronics has acquired an order to produce next-generation AI6 chips to be used in Tesla's AI products.

The deal is worth 22.76 trillion won, or 16.5 billion dollars, and will last through 2033. It's one of Samsung's largest-ever chipmaking deals.

Tesla CEO Elon Musk personally announced that Samsung Electronics "will be dedicated to making Tesla's next-generation AI chips" at its new Texas factory.

He added that the 16.5-billion-dollar number is "just the bare minimum" and the actual output is likely to be several times higher.

The deal has laid a foundation for Samsung to catch up with Taiwan's TSMC, the world's largest semiconductor foundry.

With its technological prowess now proven, Samsung plans to actively pursue more global big tech clients like Nvidia.

However, some say there is not much time to seize the opportunity.

Kyung Hee-kwon / Institute for Industrial Economics & Trade
The supremacy in the foundry and memory chip markets will change in the next five years.

Proving technical competitiveness in Tesla deal is crucial for winning chip orders.

On Monday, Samsung Electronics' shares surpassed 70,000 won (USD 50) for the first time in 11 months mainly thanks to the deal with Tesla.