Samsung Electronics signed a major $16.5 billion contract to provide semiconductors to a major global corporation, which significantly raised the firm’s shares.
The Korean tech giant is actively expanding its ways in the tech industry to maintain its leading position, and now it has earned a $16.5 billion contract for supplying semiconductors to Tesla. This new contract will be significant for Samsung’s Foundry, which hasn’t been doing so well lately.
Tesla CEO Elon Musk, via an X post, confirmed Tesla had signed a $16.5 billion semiconductor chip contract, and the agreement has already begun on July 26, 2024, and is set to conclude on December 31, 2033.
The chips, specifically Tesla’s next-generation AI6 chips, will be made at Samsung’s new factory in Texas, which will help the Korean firm to stand strong against its rival TSMC in the chip manufacturing world. Right after announcing this contract, the company’s shares in Seoul instantly rose by 3.5%, marking their most efficient intraday gain in nearly four weeks, as reported by a reliable blog, Bloomberg.
In a filing of the contract, Samsung noted that the deal signed on Saturday was related to contract chip manufacturing but stated that other details of the agreement, including the name of its counterpart and the terms, would not be disclosed until the end of 2033, and the key reason behind this is to “protect trade secrets.”
Although the duration of the contract is quite long, it remains to be seen whether Samsung will benefit from the deal or not.
