Elon Musk confirms Tesla has signed a $16.5 billion chip contract with Samsung Electronics
NBC22 hrs
Samsung and Tesla Ink $16.5B AI Chip Deal
Above: A general view of the Samsung Austin Semiconductor plant on April 16, 2024 in Taylor, Texas. Image copyright: Brandon Bell/Getty Images
The Spin
Democratic narrative
This deal, which will see American-made chips placed in Tesla vehicles, was only possible thanks to the initiative of the Biden administration under its revolutionary Chips and Science Act. Samsung was the beneficiary of funds to help establish its new foundry in Texas. President Trump has spoken out against the act, and his tariff strategy is also going to show how inadequate the semiconductor strategy of this administration is.
Republican narrative
The Biden administration was eager to hand out taxpayer funds, but less willing to actually make the U.S. the chip capital of the world. President Trump has worked to export more American-made semiconductors in a move that will actually grant the country a competitive edge on the world stage. Trump has reversed Biden-era regulations that let businesses build without interference and ink deals as large as this one with Tesla.