Key insights
- Samsung quadrupled its DRAM supply to Tesla in April due to increasing demand for in-vehicle systems. This highlights the growing demand for memory chips in the EV sector and the shift in Samsung's production towards higher-margin AI-related products. This could positively influence semiconductor stocks, but also signals potential supply constraints in the broader memory market.
Investing.com-- Samsung Electronics Co Ltd (KS:005930) has quadrupled its monthly supply of DRAM to Tesla Inc (NASDAQ:TSLA), South Korean publication Edaily reported on Tuesday, amid increasing memory demand from the electric vehicle maker.
Samsung’s monthly supply of 8GB GDDR6 DRAM to Tesla grew fourfold in April from levels seen in the first quarter, the Edaily report said. The EV maker is experiencing difficulties with memory supply.
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Samsung has ramped up production at its Hwaseong campus to meet demand. The company supplies DRAM to Tesla primarily for its in-vehicle infotainment and autonomous driving systems.
The South Korean chipmaker had last year signed a long-term semiconductor manufacturing agreement with Tesla, worth about $16.5 billion.
The memory chip maker also plans to begin producing advanced artificial intelligence chips for Tesla at its Texas foundry later in 2026.
Global memory chip supplies have tightened substantially since mid-2025, amid outsized demand from the AI industry. Samsung was also seen curbing production of tradition DRAM memory in favor of higher-margin AI products, specifically high-bandwidth memory.
NVIDIA Corporation (NASDAQ:NVDA) is a major buyer of Samsung’s HBM chips.