Tesla Chief Executive Elon Musk confirmed the deal on X, saying Samsung’s new facilities in Texas will be dedicated to making the U.S. electric-vehicle company’s next-generation AI6 chip.

Tesla may be in a sales slump, but its multiyear chip deal with Samsung Electronics is giving the South Korean company a boost.

According to a senior analyst at NH Investment & Securities, Ryu Young-ho, Samsung's Taylor fab "so far had virtually no customers, so this order is quite meaningful".