Tesla Chief Executive Elon Musk confirmed the deal on X, saying Samsung’s new facilities in Texas will be dedicated to making the U.S. electric-vehicle company’s next-generation AI6 chip.

Samsung Electronics (005930.KS) said on Monday it has signed a contract valued at $16.5 billion to supply semiconductors to a major global corporation, in a regulatory filing.

Even if he's right, Tesla's patronage is unlikely to be enough to turn around Samsung's foundry fortunes alone.