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Musk’s new job as Samsung Fab Manager – Can he disrupt chip making? Intel outside

Musk’s new job as Samsung Fab Manager – Can he disrupt chip making? Intel outside
by Robert Maire on 07-29-2025 at 6:00 am

Elon Musk Samsung Tesla

– Musk chip lifeline to Samsung comes with interesting strings attached
– Musk chose Samsung over Intel-What does that say about Intel?
– Musk will hold sway over Samsung much as Apple/NVDA over TSMC
– Will Musk do a “DOGE” on chip tool makers? How much influence?

Tesla/Samsung $16.5B deal has many, many ramifications to rile chips

Samsung has been flailing for quite some time in the foundry business. TSMC is running away with the foundry industry leaving both Samsung and Intel far behind eating dust. Samsung just got a huge lifeline in the form of an endorsement from none other than Elon himself.

The Talyor Texas fab which had been on hold due to a lack of customers now has a customer big enough to fill the whole fab and then some. It puts the fab back on track overnight and puts Samsung back in the foundry business.

We are 100% certain that Musk got a super sweetheart deal that exacted a few pounds of flesh from Samsung which was backed up against a wall.

Certainly a way better deal than he could have gotten from TSMC which is up to its eyeballs in demand especially from the likes of Apple and Nvidia.

This also clearly puts Samsung in the middle of the AI business in a way they never could have by themselves.

“Intel Outside” – What does Musk’s choice say about Intel?

We are sure that Intel would have given away the farm to get this deal from Musk. It would have been the deal they needed to justify 14A and beyond. It would have been the deal of the century to rescue Intel……but it wasn’t……

The real question is why not Intel? Did they not offer Musk enough? I doubt it. Maybe there is not enough faith in Intel’s ability to execute. Maybe concern about viability.

Maybe Musk just wanted to thumb his nose at the US chip company (Intel) and the current Trump administration trying to come up with a post CHIPS Act strategy that works.

Maybe Musk just like the short commute to the Taylor fab in Texas….

Maybe its all of the above……

But what it clearly is, is very bad for Intel to be the last person standing at the chip industry dance without a partner…..

Musk’s new role: “Samsung Fab Manager”

A few Musk words that should strike fear into every semiconductor equipment maker;

“Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house”

Read that line again; ….. “I will walk the line (fab production line) personally to accelerate the pace of progress”

Imagine seeing Musk in a bunny suit inside the fab talking to tool operators…..It just blows my mind….and the fact that Samsung agreed to this shows just how desperate they are.

Is Musk going to personally negotiate with tools makers about the price/performance of their tools? Don’t be surprised as he has very clearly completely disrupted other industries. He is certainly smart enough and rich enough to turn the chip industry on its head….

  • Electrify autos
  • Reusable spaceships
  • Global high speed internet
  • Tunnels
  • Robots
  • AI
  • Drive Ins
  • Flamethrowers
  • DOGE
  • A third political Party
  • The semiconductor industry is a piece of cake
Tesla over other auto makers and other AI suppliers

Tesla now has guaranteed bleeding edge , us sourced, tariff resistant, chip capacity for its cars versus GM stuck with ancient, outdated, Global Foundries and foreign unreliable, tariffed, fabs……

Tesla/Musk now can get critical AI chip capacity for its robots, cars etc; and not be beholden to Nvidia/TSMC

Quite a stroke of genius……

The stocks

Obviously a big positive for both Samsung and Tesla.

Obviously a negative for Intel and TSMC

A negative for GM, Ford, BMW, Mercedes, Toyota etc; left in the analog dust….

Gotta love Texas……

Positive for chip tool makers in that Samsung’s Texas fab is back on but negative given the potential involvement of Musk in running the fab and impacting decisions.

Positive for all those former DOGE Musk minions (including “Big Balls”) will now have jobs “accelerating the pace of progress” in Samsung’s Taylor fab.

About Semiconductor Advisors LLC
Semiconductor Advisors is an RIA (a Registered Investment Advisor), specializing in technology companies with particular emphasis on semiconductor and semiconductor equipment companies.
We have been covering the space longer and been involved with more transactions than any other financial professional in the space.
We provide research, consulting and advisory services on strategic and financial matters to both industry participants as well as investors.
We offer expert, intelligent, balanced research and advice. Our opinions are very direct and honest and offer an unbiased view as compared to other sources.
Also Read:

Elon Musk Given CHIPS Act & AI Oversight – Mulls Relocation of Taiwanese Fabs

CHIPS Act dies because employees are fired – NIST CHIPS people are probationary

Trump whacking CHIPS Act? When you hold the checkbook, you make up the new rules

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