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Elon Musk Announces Tesla-Samsung Partnership
On July 28, 2023, Tesla CEO Elon Musk revealed on X that Tesla has entered a $16.5 billion agreement with Samsung Electronics to produce the next-generation inference chip, AI6, at a new foundry in Texas. This partnership is crucial for Tesla’s upcoming innovations, including its Robotaxi platform and Optimus humanoid robot, which require advanced semiconductor technology.
The deal represents a strategic shift as Tesla seeks to diversify its manufacturing partners, even as Taiwan Semiconductor Manufacturing Company (TSMC) holds a commanding 70% share of the global chip foundry market. Notably, TSMC will continue to manufacture Tesla’s AI5 chip, indicating that Tesla is hedging its supply chain risks by working with multiple foundries.
While the partnership boosts Samsung’s standing in the semiconductor industry, analysts suggest it may not significantly impact TSMC’s long-term dominance or revenue potential. This development underscores the growing importance of advanced AI chips in the tech landscape and hints at the competitive dynamics within the semiconductor sector.
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