Tesla Signs $16.5 Billion Chip Supply Agreement with Samsung for Autonomous Driving and AI Chips
Tesla has entered into a $16.5 billion supply agreement with Samsung Electronics for the production of autonomous driving and AI chips. The multi-year deal will rely on Samsung’s 4-nanometer manufacturing process and will utilize fabrication facilities in both Taylor, Texas, and Hwaseong, South Korea. The chips are intended to power Tesla’s Full Self-Driving (FSD) systems and support its broader AI infrastructure.
Production is scheduled to begin in late 2025 or early 2026, once Samsung’s Texas foundry reaches operational readiness. That site represents a major investment in domestic semiconductor production and is expected to play a key role in supplying Tesla’s future compute needs.
Trump Announces U.S.- EU Trade Agreement
U.S. President Donald Trump and European Commission President Ursula von der Leyen announced a trade agreement between the United States and the European Union. The agreement introduces a standardized 15% tariff on most EU exports to the U.S., includes specific sectoral exemptions, and outlines a commitment by the EU to invest in U.S.-based industrial projects. The arrangement also creates a bilateral council for continued trade coordination and regulatory dialogue.
The July 2025 U.S.–EU agreement includes the following:
- A 15% flat tariff on most EU exports to the U.S.
- Exemptions for specific sectors
- A pause on additional tariff measures
- A $30 billion EU investment pledge in selected U.S. industries
- Formation of a trade council to oversee implementation and guide future discussions
This agreement introduces a framework for engagement between the U.S. and EU but does not contain binding legal mechanisms or eliminate existing trade barriers beyond the exempted categories.
Mars the Candy Company to Invest $2B in US Production Through 2026
Food giant Mars plans to invest $2 billion by the end of 2026 to expand its U.S. manufacturing capabilities and boost product innovation.
The M&M’s, Snickers and Ben’s Original maker said the investment will boost production in America, where 94% of Mars’ products sold are manufactured locally. Mars previously spent $6 billion during the past five years to expand its manufacturing footprint. Mars noted the $2 billion investment includes a $240 million facility for Nature’s Bakery in Utah that is opening Wednesday. The plant will create more than 230 new jobs in the region and expand the brand’s capacity, with the ability to produce nearly one billion bars each year.
Nature’s Bakery has been a bright spot for Mars. The company said last November that the healthier soft-baked snack bar posted a 30% increase in volume during the prior year, bucking the broader slowdown in the snack bar category.
US and South Korea Strike Tariff Deal
If finalized, the U.S. would charge a 15% tariff on imports from South Korea, per Trump. U.S. goods imported to Korea, meanwhile, would not be subject to any tariffs. The arrangement, announced shortly after Trump met with Korean officials at the White House, came during a blizzard of trade policy announcements ahead of a self-imposed 1 August deadline.
That is when Trump has promised higher tariffs will kick in on US imports from a range of countries. Imports from South Korea, a powerhouse exporter of computer chips, cars, and steel, faced a 25% rate. “I am pleased to announce that the United States of America has agreed to a Complete Trade Deal with the Republic of Korea,” Trump said on Truth Social on Wednesday. The South Korean president, Lee Jae Myung, said on Thursday that the deal would put South Korea on an equal or better footing compared with other countries. Lee also said the countries had agreed to set up a $350bn investment fund, out of which $150bn was aimed at a shipbuilding partnership.
