Episode summary
Samsung to Make Tesla AI Chips in Multiyear Texas Deal | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, John Tucker · Guests: Craig Trudell, Duncan Fox, Brendan Murray
Summary
Samsung’s $16.5 billion Texas pact with Tesla was presented as a meaningful boost for Samsung Electronics’ foundry business and a sign Tesla is still pushing ahead on next-generation AI semiconductors. The guest said Samsung is already a supplier for Tesla’s high-powered driving chips, but the new deal appears tied to a future AI chip and to Samsung’s Texas fab, while Tesla is also working with TSMC on other semis. He said the arrangement may help Tesla sentiment, though Elon Musk seems to be focusing more on XAI and artificial intelligence broadly than on Tesla’s day-to-day operations.
Heineken’s earnings commentary centered on weaker beer volumes after European retailers pushed back on price increases, especially in a market where about half of the business is tied to Europe. The guest said price negotiations finally improved, which could help in the second half if weather strengthens demand, but he also argued that more drinking is happening at home, ready-to-drink products are taking share, and premium brands remain too small a slice of the mix to offset the volume pressure.
On tariffs, the guest argued that the economic damage is already showing up as a slow grind rather than an immediate shock. He said American importers pay the taxes, with companies absorbing the cost through lower margins, reduced investment, or higher consumer prices. Even with the EU deal, he said the 15% tariff rate is still an economic headwind that should show up over coming quarters in weaker capital spending and eventually in inflation and growth data.
Key takeaways
- Craig Trudell said Tesla’s Samsung deal is for a next-generation AI chip and could support sentiment around Tesla, even as Musk remains heavily focused on AI elsewhere.
- Craig Trudell said Samsung’s Texas fab is part of a longer-running project shaped in part by the CHIPS Act, but the exact timing of production is still unclear.
- Duncan Fox said Heineken’s volume weakness was driven by delayed price increases in Europe, especially because roughly 50% of the business is tied to that region.
- Duncan Fox said drinking is shifting toward at-home consumption and ready-to-drink products, which hurts beer volumes even as premium brands perform better.
- Brendan Murray said tariffs are paid by American importers and then absorbed through margins, prices, or lower investment, making them a drag on growth over time.
- Brendan Murray said the EU deal still leaves a 15% tariff on European exports to the U.S., which he described as an economic headwind despite market relief.
Notable quotes
“Samsung Electronics will produce AI semiconductors for Tesla in a new $16.5 billion pack that marks a wind for its underperforming foundry division”
“this is a a deal for a next generation AI chip for for Tesla”
“I think you can you can glean so much uh from his his uh you know, activity on X”
“European retailers decided not or delayed pushing the prices up”
“people are now it's it's sort of more like 80% drinking at home in the US”
How the episode opens
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Let's cross over to tech to Tesla. Samsung Electronics will produce AI semiconductors for Tesla in a new $16.5 billion pack that marks a wind for its underperforming foundry division. What does this mean for our friends at Tesla? Craig Trudel joins us. Bloomberg Global Autos editor here. Uh Craig, talk to us about what Tesla's trying to to do here with this big deal for with Samsung.
Yeah, so uh this this is a a deal for a next generation AI chip for for Tesla. Uh so Samsung is an existing supplier of of these uh you know high-powered semiconductors that are used for its driving systems that it markets as uh full self-driving and autopilot. Uh and and contrary to those names that you know you cannot buy a Tesla today and and have it drive itself uh for you.
You still need to pay attention and and keep your hands on the the wheel and eyes on the road. But uh it is the case that those uh systems are are becoming more more capable and that Tesla's trying to kind of press the issue with them uh to the point where uh you know they're taking people out of out of the driver's seat and and having uh you know supervisors uh in the in the passenger seat of of cars in Austin, Texas and and trying to to take that elsewhere as well. Uh this this will be uh interestingly Musk uh announced overnight that uh they will be going to a TSMC chip uh for for the next generation of of semis that they use and then go to Samsung uh relying on on supply from from this plant in Texas that that Samsung is poised to to open uh in in in the near future.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- tesla ai chips
- samsung foundry deal
- heineken earnings
- consumer demand europe beer volumes
- trump tariffs and world growth
Companies and tickers mentioned
- TSLA
- HEINY
- Samsung Electronics
- Tesla
- Heineken
Watch the episode
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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