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Tesla Samsung Seal USD 16.5 Billion Chip Deal For AI6 Production At Texas Plant

Tesla Samsung Seal USD 16.5 Billion Chip Deal For AI6 Production At Texas Plant

NDTV3 days ago
Tesla, the US-based electric car maker, has signed a USD 16.5 billion deal with Samsung Electronics to source the AI6 chipset. Elon Musk himself confirmed the deal via X post, stating that Samsung's Texas fabrication plant will be dedicated to producing the chipset. Reports also suggest that, as confirmation of the Tesla-Samsung deal came to the public eye, the share prices of the electronics manufacturer skyrocketed by 6.8 percent, which is the highest that the brand has received since September 2024.
Elon Musk shared a thread on X (formerly known as Twitter), stating, "Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house."
Replying to the same post, Musk also confirmed that Samsung will dedicate its Texas fabrication plant to work on manufacturing the AI16 chipset. However, it is not the first time that Samsung has joined hands with Tesla. Currently, Jay Y Lee's electronics manufacturing company is making AI4 chips that help Tesla cars to support driver assistance software, enabling the self-driving mode.
Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip. The strategic importance of this is hard to overstate.
Samsung currently makes AI4.
TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona.
— Elon Musk (@elonmusk) July 28, 2025
While the AI4 and AI6 chipsets are on Samsung's list, the AI5 chips are manufactured by Taiwan Semiconductor Manufacturing Company. The deal announcement has come at a crucial time and proves to be beneficial for Samsung, as the brand recorded losses in the contract chipmaking trade. However, the AI6 chipset's production timeline has not yet been confirmed by Tesla or Samsung.
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Telecom testing just got cheaper as govt slashes certification fees by up to 95%
Telecom testing just got cheaper as govt slashes certification fees by up to 95%

Mint

time6 minutes ago

  • Mint

Telecom testing just got cheaper as govt slashes certification fees by up to 95%

India has slashed the security certification fee for telecom equipment makers, the latest in a series of regulatory moves to ease business compliance requirements for companies importing or making telecom and tech equipment or products indigenously. Companies such as Nokia, Ericsson, Cisco Systems Inc., HFCL Ltd, and Dixon Technologies (India) Ltd will benefit from the government's decision to cut the fee by up to 95% for more than 50 categories of telecom and tech products. These include routers, connected devices, satellite equipment, smart meters, optical fiber cables, and 5G and WiFi gear, according to a government official and an internal document reviewed by Mint. 'Testing of telecom equipment is a key requirement," the official said, declining to be identified. 'The current downward revision in pricing pertains to the fee paid by the companies to the government to get certification, which is also known as security test report evaluation fee." A telecom or tech equipment maker or importer needs to engage a lab designated by the government to test its products and ensure the devices are safe for users and secure for communication networks. The government will later issue a security certificate if satisfied with the lab's report. Effective 1 August, the cost for this certification has been slashed to ₹10,000-50,000 per equipment model from ₹2-3.5 lakh. The National Centre for Communication Security (NCCS) on 30 June circulated a note to Department of Telecommunications officials informing about the reduction in the security test report evaluation fee. 'On an average, the overall cost for testing comes to ₹60-65 lakh per unit, which largely includes the third-party lab-testing costs," said Paritosh Prajapati, chief executive and founder of Sweden-based broadband equipment maker GX Group, which is a beneficiary of India's productivity-linked incentive scheme for the telecom sector. 'While this reduction in certification fee now is a breather, there is also a need for the government to increase testing labs and increase their capacity," he added. A time-consuming process The relaxation in testing and certification costs for telecom companies comes at a time when India is engaged in key trade negotiations with the United States, even as the US announced a 25% tariff plus a penalty on Indian goods from 1 August. In March, the US Trade Representative (USTR) had raised concerns about India's testing and certification system. The concerns included limited testing capacity, a slow and complex registration process, cancellations over non-safety issues, and high compliance costs. 'The US government has recommended that the Indian Government recognize internationally accredited labs, harmonize labeling requirements withglobal practices, harmonize the validity period of test reports and certification, and eliminate retesting requirements," USTR said in its report. India has seven designated telecom security testing labs, and has issued 92 security certificates so far, NCCS data show. HFCL, Cisco, Dixon Electro Appliances, and Hewlett Packard Enterprise, among others, have applied and received security certifications for different products. While India launched the Communication Security Certification Scheme in 2020 to streamline the process, there have been delays in implementing rules related to certification. Also, as telecom equipment makers raised complaints about inadequate testing capacity and a cumbersome registration process, the scheme has not been universally applied across the telecom ecosystem. While the government's decision to reduce the security certification fee will help the industry, 'the more challenging part is the time consumed in this process of testing, which also needs to be brought down", said Konark Trivedi, founder and managing director of telecom equipment maker Frog Cellsat Ltd. 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An optical network terminal is the device at the customer's home that converts fiber signals into internet and other services. The fee reductions were part of the government's efforts towards improving ease of doing business in India for global telecom equipment makers. On 15 July, Mint reported that India had dropped its demand that telecom equipment suppliers hand over proprietary source code, a key piece of software that controls the working of an equipment. Instead, manufacturers are required to provide just a summary of internal security test results. However, local gear makers expressed concerns sustained pressure from multinational companies may have influenced the government's decision to relax its source code sharing and certification requirements.

Tesla to pay $243 million over fatal autopilot crash
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Hindustan Times

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Tesla to pay $243 million over fatal autopilot crash

Tesla Inc. was told to pay $243 million in a lawsuit over a 2019 Autopilot crash in Florida that killed a young woman and seriously injured her boyfriend, the first significant court loss for the automaker in litigation related to its driver-assistance technology. Elon Musk's Tesla to pay $243 million in an autopilot crash lawsuit(REUTERS) A jury in Miami federal court found Friday that Tesla was 33% to blame for the collision. A Tesla Model S ran a stop sign at a T intersection in the Florida Keys and rammed into the couple's parked Chevrolet Tahoe while they were standing next to it. Jurors issued their verdict after less than a day of deliberations following a three-week trial. The jury determined that the Tesla S driver was primarily responsible for the crash and that Tesla should pay $42.5 million to compensate the victims for their losses. The panel also ordered Tesla to pay $200 million in punitive damages, but the company said it expects that figure to be reduced by the court. Tesla had argued the driver was entirely at fault because he was distracted when he dropped his mobile phone on the floorboard. 'Today's verdict is wrong and only works to set back automotive safety and jeopardize Tesla's and the entire industry's efforts to develop and implement life-saving technology,' Tesla said in a statement. 'We plan to appeal given the substantial errors of law and irregularities at trial.' The Miami suit is one of a handful of crash cases that have gone to trial and the verdict tarnishes Tesla's near-perfect record in court. The electric-vehicle maker prevailed in two previous trials in California over Autopilot-related crashes and has struck confidential accords to resolve several cases that blamed defective technology for deadly accidents. The verdict comes as Tesla Chief Executive Officer Elon Musk faces enormous investor pressure after the company's stock has been battered, first by his close affiliation with President Donald Trump, and then by his dramatic falling out with the president. Musk has staked Tesla's future in part on autonomous driving as the company is launching a robotaxi business. But when Tesla recently announced disappointing second-quarter earnings, Musk warned that the company is in for a few 'rough quarters' as incentives like the EV tax credit go away in the US. At trial, the jury heard testimony from the driver of the Model S, family members of the woman who died, company engineers and various outside experts who discussed whether Autopilot played a role in the collision. George McGee, the driver of the Model S, had engaged his vehicle's driver-assistance system while traveling home from work. In the moments before the collision, data obtained from the vehicle showed that he had pressed the accelerator to 17 miles (27.4 kilometers) per hour over the posted speed limit, leading him to override the vehicle's adaptive cruise control before he went off the road. McGee testified that he had been on hold on with American Airlines trying to modify an upcoming flight. He said his phone fell and he was looking for it just before the crash. As his car left the road, McGee said he felt the texture of the road change under his tires and he remembered 'jamming on the brakes.' During questioning, he told jurors that he knew he was completely responsible for operating the car, but that he expected Autopilot to assist him in the event he made a mistake. 'In that case, I do feel like it failed me,' he said, according to a transcript of his testimony. The family of Naibel Benavides Leon, the woman who was killed, reached a confidential settlement with McGee in 2021 in a separate lawsuit. Lawyers for the estate of Benavides Leon and her boyfriend, Dillon Angulo, argued Tesla's Autopilot encourages complacency and that the company and Musk have overstated the system's capabilities, leading drivers to be overconfident in its abilities. They also alleged that Tesla failed to add safeguards to ensure the software was only available on roadways where it was designed to be used and features to monitor the attentiveness of drivers. 'Today's verdict represents justice for Naibel's tragic death and Dillon's lifelong injuries, holding Tesla and Musk accountable for propping up the company's trillion-dollar valuation with self-driving hype at the expense of human lives,' Brett Schreiber, lead attorney for the crash victims, said in a statement. Tesla, as it has in other cases, blamed driver error for the collision. Lawyers for the company argued repeatedly that McGee was an aggressive driver with a history of speeding, and that he took his eyes off the road and his hands off the wheel despite warnings in the owners' manual that drivers must stay engaged. The company has maintained there were no defects in its software and that Autopilot operated exactly as designed. Throughout the trial, Tesla defense attorney Joel Smith said no driver-assistance technology on the market in 2019 would have been able to prevent the crash. The automotive industry categorizes automation systems in vehicles from Level 0 to 5, based on what features are available. Level 0 features simply pass on information to the driver, like sounding a warning when you're driving out of a traffic lane. Tesla's Autopilot is classified as Level 2 because it requires constant driver input and supervision. The case is Benavides v. Tesla, 1:21-cv-21940, US District Court, Southern District of Florida (Miami). (An earlier version of the story corrected the damages amount. Updates with additional details about damages in third paragraph.) More stories like this are available on ©2025 Bloomberg L.P.

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Trump says he heard India halted Russian oil purchases after tariff threat, calls it 'good step'

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