TAIPEI, Sept. 19, 2025 /PRNewswire/ -- Tesla and Samsung have struck a US$16.5 billion chip deal seen as a win-win, with Samsung's Texas fab set to produce Tesla's next-gen AI6 chips. Tesla gains customized supply chain support, while Samsung strengthens its foundry credibility and expands its external client base.
Following an announcement by Samsung of a US$16.5 billion foundry deal with an unnamed client, Tesla CEO Elon Musk confirmed on social media that Samsung's new Texas fab will produce Tesla's next-gen AI6 chip. Tesla will also aid in enhancing the plant's production efficiency, spotlighting both Tesla's chip plans and Samsung's foundry goals.
Supply chain integration behind Tesla-Samsung partnership
For Tesla, the deal provides not only flexibility, risk diversification, and bargaining power but also benefits from customized cooperation and integrated supply chain support.
Tesla's demand for advanced process chips goes beyond vehicles to include robots and AI applications. Unlike traditional chip designers, Tesla focuses on custom-designed chips optimized for its own products. To realize its vision and stay ahead in AI and "Physical AI," Tesla requires strong manufacturing support and seamless supply chain coordination.
From a supply chain and customization standpoint, Samsung suits Tesla better than TSMC. Tesla's EV sales, under 2 million annually, and the US$16.5 billion AI6 order over several years are modest for TSMC, limiting Tesla's access to tailored services. Samsung, aiming to grow its foundry business, finds Tesla's demand significant enough to warrant adjustments, explaining the focus on the AI6 rather than the AI5.
On another note, Samsung's vertical integration business model means weaker product sales affect its overall revenue; therefore, partnering with Tesla helps bridge this gap, as Tesla's focus on EVs and robotics complements Samsung's main business. Beyond foundry services, Samsung could provide memory, batteries, and displays, boosting Tesla's supply while ensuring demand for Samsung's products.
Building confidence in Samsung's Foundry through Tesla
For Samsung, teaming up with Tesla is less about quick profits and more about boosting its foundry business credibility. DIGITIMES foresees that Samsung and Intel are expected to capture around 10% and 9% of the global foundry market by 2025, mostly driven by internal demand—over 90% for Intel and at least 50% for Samsung. Attracting more external clients is essential for both companies.
Confidence is crucial for clients in foundry selection, as production issues affect revenues and strategies. Samsung will have to improve technology, yields, and secure flagship clients to revive its foundry business. Tesla's US$16.5 billion order reflects trust in Samsung's long-term capabilities and highlights its commitment to US manufacturing through the Taylor, Texas, fab.
In all, the deal is crucial for Tesla and Samsung, representing a strategic partnership beyond a simple contract, focusing on supply chain integration and foundry development. However, with Taylor's 2nm production line only launching in 2026, the partnership's future depends on production performance and yields.
CONTACT: joyce.siow@digitimes.com
** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **
DIGITIMES ASIA Research Insights: Win-win alliance between Tesla and Samsung strengthens chip and foundry ambitions
DIGITIMES ASIA Research Insights: Win-win alliance between Tesla and Samsung strengthens chip and foundry ambitions
ALULA, Saudi Arabia, Jan. 16, 2026 /PRNewswire/ -- Today marks the official opening of Desert X AlUla 2026, the landmark fourth edition of the international, open-air biennial exhibition. Arts AlUla, in collaboration with Desert X, welcomes visitors to experience a stellar line-up of Saudi and international multi-generational artists whose site-responsive earthworks, sculptures, and installations will engage in a powerful dialogue with the awe-inspiring landscapes and layered heritage of AlUla.
As a premier destination rich in ancient history and breathtaking nature, AlUla, located in Northwest Saudi Arabia, solidifies its position on the global stage as a dynamic, emerging land art destination with Desert X AlUla, the region's first public art biennale, and a key highlight of the AlUla Arts Festival.
The 2026 edition of Desert X AlUla brings together 11 acclaimed artists whose diverse works reflect a wide spectrum of ideas, materials, and traditions. From monumental kinetic sculpture to sound-based explorations above and below ground, each commission is deeply rooted in relationships to AlUla's distinctive environment, further cementing Desert X AlUla's reputation as a globally significant platform for site-responsive land art.
Desert X AlUla runs until February 28, 2026, as a cornerstone of the annual AlUla Arts Festival. Curated by Wejdan Reda, Zoé Whitley, with artistic direction by Neville Wakefield, and Raneem Farsi, its fourth edition explores 'Space Without Measure.' Inspired by Kahlil Gibran, the theme fosters contemplation of imagination within AlUla's natural settings. The exhibition, set in the desert canyons of AlUla, serves as a pre-opening programme for Wadi AlFann, offering a pivotal glimpse into AlUla's plans to create a permanent land art 'Valley of the Arts.'
Hamad Alhomiedan, Director of Arts & Creative Industries at the Royal Commission for AlUla (RCU), said: "At Desert X AlUla 2026, audiences will engage with art that deeply converses with AlUla's unique landscapes and rich heritage. These compelling commissions highlight AlUla's dynamic transformation into a major global destination, where ancient and contemporary expressions converge. This exhibition is part of our broader revitalisation of AlUla as a culturally rich destination to live, work and visit and integral to positioning AlUla in the global dialogue of contemporary art and as a precursor to monumental projects like Wadi AlFann."
Participating artist/artworks are:
- Sara Abdu, A Kingdom Where No One Dies: Contours of Resonance
- Mohammad Alfaraj, What was the Question Again?
- Mohammed AlSaleem, The Thorn, AlShuruf Unit, The Triangles, Flower Bud, and Al Ahilla (courtesy of Royal Commission for Riyadh City)
- Tarek Atoui, The Water Song
- Bahraini-Danish, Bloom
- Maria Magdalena Campos-Pons, Imole Red
- Agnes Denes, The Living Pyramid
- Ibrahim El-Salahi, Haraza Tree
- Basmah Felemban, Murmur of Pebbles
- Vibha Galhotra, Future Fables
- Héctor Zamora, Tar HyPar
For further information, please contact:
Sabrine.Shaw@bursonglobal.com
AlUlaArtsFestival@bursonglobal.com
Multimedia gallery:
High-resolution photos of all 11 artists and their artworks can be found here.
About AlUla and Arts AlUla
Located 1,100 km from Riyadh, in North-West Saudi Arabia, AlUla is a place of extraordinary natural and human heritage. The vast area, covering 22,561km², includes a lush oasis valley, towering sandstone mountains and ancient cultural heritage sites dating back thousands of years to when the Lihyan and Nabataean kingdoms reigned.
The most well-known and recognised site in AlUla is Hegra, the principal southern city of the Nabataean Kingdom and Saudi Arabia's first UNESCO World Heritage Site. AlUla is also home to ancient Dadan, the capital of the Dadan and Lihyan Kingdoms and considered to be one of the most developed 1st millennium BCE cities of the Arabian Peninsula, and Jabal Ikmah, an open air library of hundreds of inscriptions and writings in many different languages. AlUla Old Town Village, a labyrinth of more than 900 mudbrick homes was developed from at least the 12th century and has been revitalised as the vibrant hub for visitors and residents.
The creation of Arts AlUla within The Royal Commission for AlUla (RCU) is a commitment to crafting the next chapters in a millennia of artistic creation – celebrating cultural inheritance and shaping a future inspired by artists built be artists. The work of Arts AlUla seeks to preserve this legacy: fuse the old with the new; the local with the international, keeping the arts central to the spirit of AlUla as a place of extraordinary natural and human heritage.
Wadi AlFann, meaning 'Valley of the Arts,' will be a global cultural destination for land art, unveiling from 2028 onwards, where era-defining works by artists from around the world will be permanently sited in the monumental landscape of AlUla, the extraordinary desert region of north-west Saudi Arabia.
** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **
Desert X AlUla 2026: monumental land art exhibition opens in the ancient oasis of AlUla
