Tesla CEO, Elon Musk and Samsung’s Lee Jae-Yong discuss production, dedicated workspace, and new business model at Texas semiconductor plant.
Samsung and Tesla are deepening their semiconductor partnership following a series of chip manufacturing deals, with the two companies’ leaders meeting in Texas to discuss production, technology, and future collaboration.
In July 2025, Samsung signed an agreement to manufacture Tesla’s next-generation AI6 chip for upcoming electric vehicles. The American automaker later extended the contract to include its current-generation AI5 chip. Samsung had already been producing Tesla’s previous AI4 chip, establishing a multi-generation supply relationship.
To review operations and strengthen collaboration, Samsung Executive Chairman Lee Jae-Yong and Tesla CEO Elon Musk met at Samsung’s semiconductor plant in Taylor, Texas, according to Korea JoongAng Daily. Sources say the discussion focused on production lines, yield targets, and potential technological cooperation.
Musk reportedly requested a dedicated workspace for Tesla personnel within the Taylor facility. This would allow Tesla engineers to monitor chip production directly, providing real-time feedback and accelerating manufacturing processes.
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The two companies are also reportedly testing a new client-involved business model for Samsung Foundry. Under this approach, customers can participate at multiple stages of chip production—from design and plant construction to production line configuration and packaging—aiming to shorten feedback cycles and improve efficiency.
Industry analysts say the model could help Samsung attract more clients seeking close collaboration and faster turnaround times. The initiative complements other Samsung innovations, such as the Exynos 2600’s Heat Path Block (HPB) technology, which reduces chip temperatures and is being promoted to major technology firms, including Apple and Qualcomm.
Samsung and Tesla’s expanded partnership highlights the growing intersection of automotive and semiconductor industries, where supply chain efficiency and technological innovation are critical to electric vehicle production.
As global demand for advanced EV chips rises, the collaboration could position Samsung Foundry as a key supplier capable of offering flexible production solutions while giving Tesla closer control over its semiconductor supply.
The meeting between Lee and Musk signals a commitment to reinforcing both companies’ positions in the fast-evolving electric vehicle and chip markets, potentially shaping the trajectory of automotive and semiconductor technology for years to come.
Africa Daily News, New York
