Samsung Electronics announced plans to begin manufacturing chips for electric vehicle maker Tesla starting in late 2027, marking a significant expansion of the South Korean technology giant's automotive semiconductor business.

The chip production agreement represents Samsung's growing focus on the automotive sector as demand for advanced semiconductors in electric vehicles continues to rise. Tesla has been working to diversify its chip supply chain and reduce dependencies on existing suppliers.

Separately, Samsung Electronics signed a memorandum of understanding with Advanced Micro Devices (AMD) to collaborate on artificial intelligence memory solutions and explore potential foundry partnership opportunities. The agreement signals both companies' commitment to strengthening their positions in the rapidly growing AI chip market.

The partnership with AMD could involve Samsung's memory expertise being combined with AMD's processor capabilities to develop specialized solutions for AI workloads. The companies are also examining possibilities for Samsung's foundry services to support AMD's chip manufacturing needs.

These developments come as Samsung seeks to expand its presence in high-growth semiconductor segments including automotive chips and AI-focused memory products. The company has been investing heavily in advanced manufacturing capabilities to compete with rivals in these emerging markets.