Samsung Electronics said on Monday that it has signed a $ 16.5 billion deal to deliver chips for a non -created large worldwide company, which sent its shares by 3.5 percent.
The South Korean Tech giant said that the deal that had been signed on Saturday was for the production of contract chip and details of the agreement including the counterpart and conditions would not be announced until the contract was completed at the end of 2033.
The deal comes when Samsung has trouble competing in the race to make artificial intelligence chips, which has reached its profit and share price.
Samsung has customers such as Tesla and Qualcomm for its foundry activities, while larger rival TSMC has customers such as Apple and Nvidia.
The deal comes when South Korea is looking for American partnerships in chips and shipbuilding because it delivers to reach a trade agreement to eliminate or lower potential 25 percent American rates.
It is not clear how the order would influence Samsung’s plan to start production in its new factory in Texas, which was delayed because it had difficulty winning large customers.
Samsung is struggling to increase the production yields of its newest 2-nanometer technology, and it is unlikely that the order concerns advanced technology, said Lee Min-hee, an analyst at BNK Investment & Securities.
Samsung loses the market share of TSMC in contract production, which underlines technological challenges that confronts the company in controlling advanced chip production to lure Apple and Nvidia away from TSMC, said analysts. ($ 1 = 1,383,6800 won)
Published on July 28, 2025
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