India, July 28 -- EV major Tesla Inc. and South Korean chip maker Samsung Electronics Co. Ltd. have entered into a contract worth around 22.76 trillion Korean Won or $16.54 billion for semiconductor contract manufacturing. Tesla founder and CEO Elon Musk in a post on the social media platform confirmed that Samsung will be making Tesla's next-generation AI6 chip.
Following the news, Samsung shares gained as much as 6.8% and closed at around 4% higher in South Korean trading. Tesla shares are currently gaining 1.4% to trade at $320.61 on the Nasdaq.
The agreement, effective from July 24, will last until December 31, 2033. According to a regulatory filing, the contract represents approximately 7.6% of Samsung's 2024 revenue of 300.87 trilli...