Samsung will manufacture AI6 chips for Tesla, deal worth Rs 1.4 lakh crore

Tesla, one of the largest electric vehicle (EV) companies, has signed a deal with Samsung Electronics for manufacturing next generation chips. The value of this deal is $16.5 billion (about Rs 1.42 lakh crore). Samsung’s foundry division will manufacture AI6 chips at its factory in Texas, USA. These chips will be used in full self-driving (FSD) and other systems in billionaire Elon Musk’s Tesla EVs.

For the past few years, preparations are being made to bring the feature of full self-driving in Tesla’s electric vehicles. In a post on social media platform X, Musk said that Tesla has entered into a strategic partnership with Samsung. Under this partnership, AI6 chips will be manufactured at Samsung’s foundry division’s Texas factory. Samsung is already making AI4 chips for Musk’s company. These chips are used in FSD and other sensor systems in the company’s EVs.

Tesla has also been allowed to assist Samsung in increasing the efficiency of chip manufacturing. Musk will monitor this process. This deal between the two companies was signed last week. This deal will run for the next seven years. Providing FSD feature in Tesla’s electric vehicles can increase the pace of sales. In the last few years, competition has increased in the EV market for Tesla. Demand has decreased due to fears of tariffs in the US, one of the company’s major markets, and the possibility of ending tax credit on electric vehicles. It is facing tough competition from China’s BYD and some other EV makers.

Due to falling sales in big markets, Tesla has started business in new markets like India. Recently, the company opened its first showroom in the country in Mumbai. However, initially it is selling only its Model Y. Booking for this has started. The company’s Model Y has been imported from its factory in Shanghai in China. However, due to high import duty in the country, expensive prices may affect Tesla’s sales.