Samsung signs $16.5 billion foundry contract lasting to 2033, rumored to be for Tesla FSD chips

Samsung Electronics has announced that it has signed a new $16.5 billion contract to supply semiconductors to a "major global corporation" which is rumored to be Tesla for FSD chips.

Tesla needs as many FSD (Full Self-Driving) chips that it can get, with reports that the Elon Musk-led company secured orders for its latest Tesla FSD chips with TSMC on its 4nm/5nm process nodes in March 2025. The new $16.5 billion contract started on July 24, 2025 and runs through to December 31, 2033.

The "major global corporation" hasn't been disclosed, but insider @Jukanrosleve on X says it's "presumed to be with Tesla" which makes sense. Samsung is also fabbing NVIDIA's new custom Tegra T239 SoC for Nintendo and its new Switch 2 gaming handheld, but a huge Tesla contract would be a big win for Samsung Foundry which has been struggling in the semiconductor business against TSMC for many years now.

Samsung Electronics is the world's largest memory maker, saying in its regulatory filing that the deal was signed on Saturday for contract chip manufacturing, adding that details of the agreement including the counterpart and terms wouldn't be disclosed until the end of 2033.