Tesla and Samsung link up in $16.5 billion deal for self-driving computer chips
Published on Jul 28, 2025 at 11:55 AM (UTC-4)
by Daisy Edwards
Last updated on Jul 28, 2025 at 1:17 PM (UTC-4)
Edited by
Emma Matthews
According to Tesla, both it and Samsung are linking up in a $16.5 billion deal for self-driving computer chips.
Samsung makes the current self-driving computer chips for the EV maker, but the next generation will be produced by TSMC, so in two generations’ time, the tech giant will be back behind the motherboard.
The chips will be all-American, being exclusively made in a facility in Taylor, Texas, while TSMC will start manufacturing in Taiwan and then move to Arizona.
This kind of thinking ahead is very significant, as TSMC has been dominating the computer chip market, but Tesla has trusted Samsung to provide the highest tech computer chips in the very near future.
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Samsung is trusted by Tesla to create its self-driving computer chips
In a surprising revelation and despite the outlook of the Tesla Earnings meeting recently, the brand is looking to the far future for tech, not only to the next generation of self-driving, but the generation even after that.
After entrusting the manufacturing of the next generation of Tesla self-driving computer chips to TSMC, which makes sense due to its current dominance of the market, the generation after that has now been secured.
In a $16.5 billion deal, Samsung is linking back up with Tesla. How?
Well, Tesla’s current computer chips are already being manufactured by the tech giant, so it’s like a TSMC sandwich with Samsung-produced generations on either side.
Sealed with a $16.5 billion deal
Part of the deal that Musk seems pleased about is that the Samsung generation chips will be produced at the firm’s facility in Taylor, Texas.
The next generation, headed by TSMC, will start with production in Taiwan before it moves to Arizona.
This $16.5 billion deal shows a lot of trust in the South Korean company to produce the next next generation of computer chips that will be high-tech and the best of the best, despite TSMC’s current market dominance.
When these self-driving computer chips come back in two generations’ time, we’ll have to see how Samsung represents itself against TSMC.
Daisy is a technology and automotive journalist covering artificial intelligence, consumer tech, Apple news, cryptocurrency, emerging technologies, and transportation innovation. Since joining the team in 2025, she has reported on everything from AI-powered startups and major iOS updates to viral car stories and the latest developments shaping transportation and the digital economy. Drawing on her background in automotive journalism and a degree in History and Journalism from Goldsmiths, University of London, Daisy specializes in breaking down complex topics into clear, engaging reporting for a global audience. Her work spans cutting-edge technology, innovative vehicles, and the people driving change across both industries. Daisy has gained first-hand access to some of the world's most talked-about technologies and innovators, including meeting Tesla's Optimus humanoid robot during its first European appearance in London. She has also discussed the future of space exploration with an astronaut, bringing unique insights and real-world perspectives to her coverage of emerging technology.
