In a landmark move that underscores Tesla’s relentless push toward full autonomy, the company has reportedly signed a $17 billion chip manufacturing deal with Samsung Electronics to produce its next-generation HW6 (Hardware 6) Full Self-Driving chips.

The deal marks one of the largest semiconductor contracts in the automotive industry to date and paves the way for Tesla’s vision-based FSD platform to reach unprecedented levels of speed, safety, and scale.

HW6: The Brain of Tesla’s Autonomous Future

Tesla’s HW6 chip will succeed the current HW5 used in newer Tesla vehicles and Robotaxi fleets. According to insider sources, HW6 will be manufactured using Samsung’s 3-nanometer process, offering significant improvements in processing power, energy efficiency, and heat management.

This ultra-efficient architecture will enable real-time neural network inference, low-latency sensor fusion, and support for increasingly complex decision-making on Tesla’s FSD platform — all without relying on cloud connectivity.

“This chip is designed to match or surpass human driving performance under all conditions,” said a Tesla spokesperson familiar with the development. “It’s a key step toward generalized autonomy.”

Samsung Partnership Strengthens

The deal reinforces the growing strategic alliance between Tesla and Samsung. While previous Tesla FSD chips were also fabricated by Samsung, HW6 signals a new level of partnership — with co-development, custom fabrication, and priority allocation of next-gen silicon.

Samsung will dedicate a significant portion of its next-gen foundry capacity in Taylor, Texas to Tesla, aligning with U.S. government efforts to localize advanced semiconductor production.

“This is not just a supply contract,” said a senior Samsung executive. “It’s a long-term strategic collaboration that will reshape the future of autonomous mobility.”

A Move to Outpace the Competition

With this deal, Tesla aims to leap ahead of competitors like Nvidia, Qualcomm, and Mobileye — all of which are actively supplying autonomous driving chips to other automakers. Tesla’s fully in-house software and now near-in-house chip stack gives it full vertical control over the FSD experience — something no other automaker currently offers.

Analysts believe HW6 could debut in Robotaxi-exclusive vehicles as early as Q1 2026, and eventually replace HW5 across the entire Tesla lineup, including the Cybertruck and Model Y refresh.

Market Reaction and Industry Impact

Tesla shares rose 6.3% following the announcement, while semiconductor industry stocks rallied on the news of increased demand for high-end AI chips. Experts say this deal could further strain global chip supply chains and spark a new wave of partnerships between automakers and chipmakers.

“This deal is not just about chips,” said auto tech analyst Priya Kapoor. “It’s about Tesla securing the future brainpower behind its most important products — and ensuring no one else can match it anytime soon.”