Samsung’s Tesla AI6 Chip Deal Could Grow Far Beyond $16 Billion

A few months ago, Samsung signed a deal with Tesla to produce the automaker’s next-gen AI6 chip. The agreement, estimated to be worth over $16 billion, reportedly runs through 2033. Now, a new report from Korea suggests Tesla wants Samsung to significantly increase the production volume of the chip, a move that could expand the contract’s total value several times.

Tesla is negotiating larger AI6 chip production with Samsung

According to The Elec, senior Tesla executives may meet their Samsung counterparts this week to negotiate additional supply of the AI6 chip. The talks center on increasing the manufacturing volumes beyond the levels already agreed upon in the contract signed last year.

Under the existing agreement, Samsung’s foundry division was contracted to produce around 16,000 wafers per month. Tesla is now reportedly seeking an additional 24,000 wafers per month, which would bring the total production volume to roughly 40,000 wafers monthly if the negotiations are successful. Such an increase would be significant for Samsung, which is currently building an advanced semiconductor plant in Taylor, Texas.

Securing a high level of production could help the company achieve strong early utilization rates at the plant once it becomes operational. There have been reports of Samsung potentially delaying mass production at the new facility. However, if the Tesla deal goes through, it may rush to launch operations early.

Analysts previously estimated that the agreement could generate between KRW 2 trillion and KRW 3 trillion in annual revenue for Samsung. With Tesla now exploring additional volumes that exceed the original agreement, the total contract value could grow substantially. The Korean firm is benefiting from Tesla’s strategy to prioritize chip suppliers outside China and Taiwan to reduce supply chain risks.

Beyond chip manufacturing, the partnership between the two companies is expanding into other areas. Samsung’s System LSI division has developed a 5G vehicle modem for Tesla, with shipments expected in the coming months. Initial deployments could appear in Tesla’s planned robotaxi fleet in Texas before expanding to other vehicles.