Samsung Reportedly Secures AI Chip Deal With Elon Musk’s xAI

Samsung continues to secure new deals to make cutting-edge chips at its Taylor, Texas, facility. The company has now reportedly inked a contract with xAI, Elon Musk’s privately held AI company. If true, this will be a major win for the Korean foundry as it prepares to begin operation of its new US factory next year.

Elon Musk’s xAI could join Samsung’s Taylor’s Fab clients

In September 2025, a report suggested that Samsung was eyeing a deal to make custom AI chips for xAI. Now it looks like the two companies have struck an agreement, though the exact value of the contract remains unclear. “It seems that Samsung Foundry has finalized a contract with xAI,” said industry insider Jukan on X. “Samsung has ordered three EUV tools for xAI at its U.S. Taylor fab”. Interestingly, this news comes a week after Samsung Executive Chairman Lee Jae-yong met with Elon Musk at the Taylor plant.

Samsung’s Taylor fab is the company’s most ambitious semiconductor investment outside South Korea. The facility will mainly focus on advanced manufacturing nodes, including a 2nm gate-all-around (GAA) process. This node allows manufacturers to produce chips for high-performance computing (HPC) and artificial intelligence (AI) workloads.

To make chips at the 2nm node, the foundry needs extreme ultraviolet (EUV) lithography equipment. This is why the reported order of three EUV tools is seen as a sign that production plans are moving forward. In fact, a previous report suggested that ASML, the maker of EUV lithography machines, has already started forming a support team for the Taylor plant.

Earlier this year, Samsung secured a major $16.5 billion contract with Tesla to make the automaker’s next-generation AI6 chip at the Taylor facility. A potential agreement with xAI should further build momentum for the Korean firm as it works to recover its foundry business. More details about the deal, such as value and production timeline, should surface on the web in the coming weeks.