![Samsung Electronics Executive Chairman Lee Jae-yong, left, and Tesla CEO Elon Musk meet at Samsung Electronics' semiconductor research center in Silicon Valley, California, on May 10, 2023. This photo was provided by Samsung on May 14, 2023. [SAMSUNG ELECTRONICS]](https://www.koreadailyus.com/wp-content/uploads/2025/12/1212-Musk.jpg)
Samsung Electronics Executive Chairman Lee Jae-yong met with Tesla CEO Elon Musk and toured the former’s semiconductor plant in Taylor, Texas, on December 11, signaling the two tech giants’ possible cooperation in the future as competition intensifies in the advanced chipmaking industry due to autonomous driving and AI.
The meeting took place as Samsung prepares to start full-scale production of advanced chips at the plant, having invested more than 50 trillion won ($34 billion) into it — the Korean company’s attempt to strengthen its position in the market and deepen ties with one of its biggest customers, industry sources told the JoongAng Ilbo.
Lee and Musk reviewed production lines and discussed yield targets and potential technological collaborations, according to people familiar with their meeting.
Musk also requested that there be a dedicated workspace inside the Taylor plant, industry sources said, which would allow personnel to remain on site to monitor chip output directly.
The arrangement suggests that the partnership is one that goes beyond a traditional supplier-client relationship.
Samsung signed a $16.5 billion agreement with Tesla in July to manufacture Tesla’s next-generation AI6 chip. The Korean company had previously secured a deal to produce some of Tesla’s AI5 chips after Taiwanese market leader TSMC was expected to be the sole provider.
The agreement reflects the carmaker’s push to secure a reliable U.S. chip supply chain for its autonomous driving, robotics and AI projects. Shortly after the deal was announced, Musk said that he had communicated directly with Lee before Tesla chose Samsung as a core partner.
Samsung has worked to stabilize its 3-nanometer technology after early yield challenges and is now pivoting to 2-nanometer production to narrow the gap with TSMC. Industry tracker TrendForce estimates that TSMC held 70.2 percent of the global foundry market in the second quarter of this year, while Samsung had 8 percent.
A deeper partnership with Tesla could help Samsung boost production at its U.S. plants, which have struggled with heavy investment costs and weak demand. Analysts say that stronger ties with Tesla may also influence perceptions of Samsung in the United States and help attract other major clients, such as Nvidia and AMD.
“It could also give Samsung a chance to learn from Tesla’s U.S. manufacturing expertise, which is already among the best in the industry,” an expert said.
BY LEE HEE-KWON [kim.juyeon2@joongang.co.kr]
