Latest news with #A14
UPI
an hour ago
- Automotive
- UPI
Tesla deal could help boost Samsung's foundry business
Samsung Electronics headquarters in South Korea. The company has signed a $16.5 billion contract to supply semiconductors to Tesla, according to the auto company's Elon Musk. Photo courtesy of Samsung Electronics SEOUL, July 30 (UPI) -- South Korea's Samsung Electronics announced it has signed a $16.5 billion, eight-year contract to supply semiconductors to an unnamed global company, noting full details will be disclosed on Jan. 3, 2033. Just hours later on Tuesday, however, Tesla CEO Elon Musk confirmed that Tesla was the buyer and Samsung's new Texas factory, which is being built, will produce next-generation AI processor A16 chips for Tesla. Samsung, which rolls out A14 chips, lost out on the A15 chip deal to archrival TSMC, but managed to succeed in A16 chips. Samsung's Texas foundry is a flagship project in its plan to invest more than $37 billion in the United States by 2030. "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," Musk said in a post on X. The announcement prompted investors to snap up Samsung shares, and its stock price has jumped more than 11% on the Seoul bourse. The world's largest memory chipmaker has underperformed in the stock market due to challenges in the advanced high-bandwidth memory business. On a brighter note for Samsung's troubled foundry business, Musk said that $16.5 billion is just the "bare minimum," and actual output is likely to be "several times higher." Musk's comments fueled speculation that Samsung could win additional Tesla orders, such as the Dojo 2 chips, which are designed to train deep neural networks used in self-driving. "Musk's remarks suggest that orders may expand to include Dojo 2 chips, as well," NH Investment & Securities analyst Ryu Young-ho said in a market report. Observers believe that the mega-sized contract will anyhow help Samsung's foundry business turn around in terms of profitability and market share in a competition with the runaway leader TSMC of Taiwan. According to Taipei-based business tracker TrendForce, TSMC's first-quarter market share stood at 67.6% in the global foundry business while that of Samsung Electronics was 7.7%. Against this backdrop, Samsung's foundry business has suffered billions of dollars in annual losses over the past few years. Samsung's contract with Tesla is also expected to affect the rivalry of leading foundry companies to master next-generation 2-nanometer-based technology. TSMC's yield rate in 2-nm process is reportedly about 70% compared to less than 60% of Samsung. Yield rate, in semiconductor manufacturing, refers to the percentage of usable, defect-free chips produced from a single wafer. "Thus far, Samsung has struggled to raise its yield rate in the 2-nm semiconductors to fall behind TSMC," SungKyunKwan University semiconductor professor Choi Byoung-deog told UPI. "The contract with Tesla demonstrates that Samsung's 2-nm yield has substantially improved. If Samsung secures more deals with such big-tech companies as Qualcomm and Apple, it will be able to start catching up with TSMC," he said. Korea Advanced Institute of Science and Technology professor Kim Joung-ho agreed. "Samsung should prove its efficiency and high yields with Tesla. Then, other major high-tech companies will show more interest in its foundry business," Kim said in an interview. When it comes to the share price of Samsung Electronics, experts claim that the company needs to make a breakthrough in the lucrative HBM business, which is dominated by Samsung's local rival, SK hynix. "If Samsung Electronics manages to supply cutting-edge HBMs to Nvidia, its share price would instantly surge," economic commentator Kim Kyeong-joon, formerly vice chairman at Deloitte Consulting Korea, said in a phone interview. "The three-way alliance involving Nvidia, SK hynix and TSMC is quite strong. But Nvidia may want to diversify its HBM suppliers, offering Samsung a potential opportunity. Samsung should find ways to satisfy Nvidia," he said. The Tesla order came shortly after Samsung Electronics Chairman Lee Jae-yong was cleared of criminal charges of accounting fraud and stock manipulation related to a merger between two Samsung units in 2015. Earlier this month, the country's Supreme Court acquitted Lee, putting an end to his prolonged legal battles.
BBC News
4 hours ago
- Automotive
- BBC News
A14 closed in Northamptonshire after crash near Catthorpe
A major road was closed in both directions after a serious collision, police Police was called to the incident on the A14's eastbound carriageway, between the junction for the M1 and junction one near Welford, at about 09:00 on the A14 eastbound carriageway were unable to access the M1 southbound and the M6 at the Catthorpe on the westbound carriageway was also stopped. Northamptonshire Fire and Rescue Service confirmed it attended and both emergency services asked motorists to find alternative routes. Follow Northamptonshire news on BBC Sounds, Facebook, Instagram and X.
Courier-Mail
a day ago
- Automotive
- Courier-Mail
Musk signs $25bn AI deal
Don't miss out on the headlines from Motoring. Followed categories will be added to My News. Chief executive officer Elon Musk is doubling down on Tesla's AI future, signing a $US16.5bn ($25.3 billion) deal with Samsung Electronics to build its next generation AI chips in the United States. The agreement confirmed Monday by Musk will see Samsung produce Tesla's AI6 chip at its plant in Taylor, Texas. The AI6 chip is part of Tesla's internal Dojo supercomputing project, designed to process vast amounts of data from its global fleet. It's a strategic risk at a volatile time. Last week, Tesla reported a 42 per cent drop in year-over-year operating income for Q2 2025, from USD $1.6 billion to $923 million, a concern for investors. Tesla shares rose 1.9 per cent in US premarket trading after the announcement and Samsung shared jumped 6.8 per cent, hitting its highest level in nearly a year. While the initial deal is valued around $25 billion, Musk added on X that the figure is 'just the bare minimum'. 'Actual output is likely to be several times higher,' Musk said in a post on X. RELATED: Tesla hits 10-year low Tesla is doubling down on its AI future. Picture: AP WIN, WIN FOR TESLA, SAMSUNG The deal will be a win for Samsung and assist its Texas facility, which has never had a major client and faced delays in operation since being completed in 2022. Tesla is one of Samsung's most high-profile contracts in years and a win for the company who has lost ground in the global chipmaking race. Elon Musk has long insisted Tesla is 'an AI company as much as a car company,', and this new partnership will assist Tesla's goals for vertical integration. It will also support the US government's priorities to strengthen domestic production. MORE: EVs banned after ship fires Samsung's state-of-the-art chip plant in Taylor, Texas – the future home of Tesla's next-generation AI6 chips under a landmark $16.5B deal. Photographer: Qilai Shen/Bloomberg '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 A14. TSMC will make the A15, which just finished design, initially in Taiwan and then Arizona,' Elon Musk said. Musk added that Tesla engineers will work closely with Samsung to improve production efficiency, and that he would personally oversee production lines. The AI6 chips are critical for Tesla's Full Self-Driving technology. While Tesla has begun beta-testing its 'Full Self-Driving v12' software with select users, critics and regulators have been sceptical of Musk's project. MORE: 'Words are f***': China's Aus turf war explodes Elon Musk says Tesla is as much an AI company as a car company. Picture: AP The AI6 chips will also likely assist robotaxi platforms and possibly Tesla's robotic projects, including a humanoid robot, Optimus. Originally published as Elon Musk signs $25bn AI deal
Qatar Tribune
2 days ago
- Automotive
- Qatar Tribune
Tesla signs $16.5B next-gen chip supply deal with Samsung: Musk
Agencies Tesla has signed a $16.5 billion deal with Samsung to source next-generation AI6 chips, CEO Elon Musk said on Monday, a move expected to bolster the South Korean tech giant's loss-making contract manufacturing business. Samsung shares rose more than 6% after the news. '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,' Musk said in a post on his social media platform X. If Musk was referring to Samsung's upcoming Taylor, Texas, plant, the deal could revive the project that has faced delays amid Samsung's struggles to retain and win major customers. 'Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency,' he added, calling it a 'critical point' in striking the deal. 'I will walk the line personally to accelerate the pace of progress,' he said, noting Samsung's Texas plant was 'conveniently located not far from my house.' While no timeline was provided for AI6 chip production, Musk has previously said that next-generation A15 chips will be produced at the end of 2026, suggesting A16 would follow. Samsung currently makes Tesla's A14 chips, which power its Full Self-Driving driver assistant system, while TSMC will make the AI5 initially in Taiwan and then Arizona, Musk has said. Texas project In October, Samsung had postponed taking deliveries of ASML chipmaking equipment for its factory in Texas as it had not yet won any major customers for the project, Reuters reported. It has already delayed the plant's operational start to 2026. Samsung, the world's top memory chip maker, also produces logic chips designed by customers through its foundry business. The Texas project is central to Samsung Chairman Jay Y. Lee's strategy to expand beyond its bread-and-butter memory chips into contract chip manufacturing. Samsung currently trails a distant second in the global foundry market, with an 8% share versus leader TSMC's 67% share, data from market researcher Trendforce show. Samsung had earlier announced the $16.5 billion chip supply deal without naming the client, saying the customer had requested confidentiality about the details of the deal, which will run through the end of 2033. The deal represents about 7.6% of Samsung's projected annual sales for 2024, the company said. The news comes as Samsung, which is due to report its earnings on Thursday, faces mounting pressure in the race to produce artificial intelligence chips, where it trails rivals such as TSMC and SK Hynix. This lag has weighed heavily on its profits and share price. Pak Yuak, an analyst at Kiwoom Securities, said the deal would help reduce losses at Samsung's foundry business, which he estimated exceeded 5 trillion won ($3.6 billion) in the first half of the year. Analysts say Samsung has struggled with the defection of key clients to TSMC for advanced chips. TSMC counts Apple, Nvidia and Qualcomm among its customers. It is not clear whether the Samsung-Tesla deal is related to ongoing trade talks between Korea and the United States. Seoul is seeking U.S. partnerships in chips and shipbuilding amid last-ditch efforts to reach a trade deal to eliminate or reduce potential 25% U.S. tariffs. Samsung has been losing market share to TSMC in contract manufacturing, underscoring technological challenges the firm faces in mastering advanced chip manufacturing to attract clients like Apple and Nvidia, analysts said. Samsung Electronics is the flagship unit of South Korea's Samsung Group, by far the largest of the family-run conglomerates that dominate Asia's fourth-largest economy.
Engadget
2 days ago
- Automotive
- Engadget
Samsung wins $16.5 billion deal to make Tesla's A16 chips
Samsung will make Tesla's A16 chip in a deal worth 22.8 trillion won ($16.5 billion). The chip manufacturer had filed a regulatory contract with an unnamed entity, but Elon Musk announced Tesla as the other party on X (formerly Twitter). The deal will run through 2033 and utilize an upcoming plant in Taylor, Texas. Musk stated, "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." This agreement marks a significant turnaround for Samsung, which, earlier this month, pushed back opening the Texas factory until 2026 due to a lack of customers. Samsung currently produces the A14 chips that power Tesla's Full Self-Driving platform. However, the A15 contract went to one of its biggest competitors, Taiwan Semiconductor Manufacturing Company (TSMC). According to Musk, that design has just been completed. The new deal doesn't come without strings — namely a lot of Musk breathing over the manufacturer's shoulder. "Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency," Musk stated in a subsequent X post. "This is a critical point, as I will walk the line personally to accelerate the pace of progress." He went so far as to point out that the fabrication facility isn't far from his Austin, Texas home. If you buy something through a link in this article, we may earn commission.
