Samsung Electronics Co. will produce AI semiconductors for Tesla Inc. in a new $16.5 billion pact that marks a win for its underperforming foundry division.

Musk noted Tesla is working with TSMC to make AI5 chips, which just finished the design. The AI5, a generation that is primarily built for FSD, will initially be made in TSMC’s Taiwan factory and then at its Arizona facility. Samsung already makes the AI4 chip, according to Musk.

In a regulatory filing in South Korea, Samsung announced it has secured a $16.5 billion multi-year deal to make chips for a “big global company.”