Samsung will produce AI6 semiconductors, the next-generation chip, for Tesla’s self-driving mode and other projects.

In a regulatory filing in South Korea, Samsung announced it has secured a $16.5 billion multi-year deal to make chips for a “big global company.”

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.