In a post on X, Musk announced that “Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip,” adding: “The strategic importance of this is hard to overstate.”

In a regulatory filing made in South Korea shortly before Musk’s announcement, the electronics giant announced it had secured a $16.5 billion contract with a “large global company.”

The multi-year deal will run through till the end of 2033, and Samsung’s semiconductor fabrication plant in Taylor, Texas, is scheduled to begin operations in 2026.

In a follow-up post, Musk said Samsung has agreed to “allow Tesla to assist in maximizing manufacturing efficiency,” but he didn’t specify whether this meant Tesla would assist in bringing the plant into operation.

Musk pointed out the Samsung fab “is conveniently located not far from my house” and claimed he would walk the production line “personally to accelerate the pace of progress.”