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SEOUL, Tesla CEO Elon Musk has confirmed a US$16.5 billion chip supply agreement with Samsung Electronics, marking a significant boost for the South Korean tech giant’s foundry business, which has been grappling with losses. The announcement drove Samsung’s shares up by as much as 6.8%—their highest level since September last year—while Tesla shares rose 1.9% in U.S. premarket trading. Under the deal, Samsung’s chip fabrication plant in Taylor, Texas will produce Tesla’s next-generation AI6 chip. The project had faced delays due to Samsung’s struggle to attract major clients. Musk noted on social media platform X that Tesla will collaborate closely with Samsung to optimize manufacturing efficiency, even saying he would “personally walk the line” to speed up progress. He added that the US$16.5 billion figure is only a baseline, with actual output potentially “several times higher.” Industry analysts highlighted the significance of the deal. Ryu Young-ho of NH Investment & Securities said the Taylor plant had previously lacked major clients, making this order a breakthrough for Samsung. In late 2023, Reuters reported that Samsung delayed taking delivery of chipmaking equipment from ASML due to the absence of key customers, pushing the plant’s operational date to 2026. Although no official production timeline for the AI6 chip was disclosed, Musk previously said Tesla’s AI5 chips would be produced by the end of 2026, indicating AI6 could follow in 2027 or 2028. Samsung currently produces Tesla’s AI4 chips, used in its Full Self-Driving system, while rival TSMC is expected to manufacture the AI5 chips in Taiwan and later in Arizona. Samsung, the world’s top memory chipmaker, is seeking to expand into contract chip production through its foundry division. However, it holds just 8% of the global foundry market compared to TSMC’s dominant 67%, according to TrendForce. Samsung initially announced the US$16.5 billion deal without naming the client due to confidentiality clauses. However, Reuters confirmed through sources that Tesla is the recipient. The agreement comes at a critical time for Samsung, which is under pressure in the AI chip space and is set to report earnings soon. Earlier this month, the company forecast a 56% year-on-year decline in Q2 operating profit, partly due to a struggling foundry business estimated to have posted losses exceeding 5 trillion won (US$3.6 billion) in the first half of 2025. Analysts say the Tesla deal could help reduce those losses and signal a turning point for Samsung’s efforts to close the technological gap with TSMC. Still, questions remain over whether the agreement ties into broader U.S.–South Korea trade talks, as Seoul continues efforts to avoid potential 25% U.S. tariffs by deepening chip and shipbuilding partnerships. ($1 = 1,378.70 won)

Thai energy giant PTT Exploration and Production (PTTEP) has acquired full ownership of Block A-18 in the Malaysia-Thailand Joint Development Area (MTJDA) through a US$450 million deal with Chevron’s subsidiaries, the company announced on July 25. According to Reuters, the agreement—inked with Hess (Bahamas) and Hess Asia Holdings, both now under Chevron following its acquisition of Hess Corp—gives PTTEP 100% equity in Hess International Oil Corp, which holds a 50% interest in Block A-18. The acquisition aligns with Chevron’s global restructuring strategy to optimise operations and reduce costs, which includes workforce downsizing and potential divestments such as its stake in a Singapore refinery. Spanning 7,250 sq km in the southern Gulf of Thailand, Block A-18 is a key natural gas producer for both Thailand and Malaysia, currently delivering around 600 million standard cubic feet of gas per day—shared equally between the two nations. “We’re proud to expand our presence in the MTJDA, a region known for its rich petroleum resources and its importance to Thailand’s energy security,” said PTTEP CEO Montri Rawanchaikul. He noted that the acquisition not only strengthens PTTEP’s foothold in the regional energy landscape but also supports Thailand’s long-term energy resilience.

KUALA LUMPUR, Malaysia is set to become a regional hub and centre of excellence for artificial intelligence (AI) in ASEAN following a landmark partnership between Nvidia Corp and YTL Power International Bhd. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz announced that the collaboration will focus on developing AI infrastructure powered by renewable energy, underpinned by an investment of RM10 billion. “This milestone project will involve the establishment of AI data centres, the deployment of Nvidia’s advanced graphics processing units (GPUs), and the development of Malaysia’s own sovereign large language model (LLM),” Tengku Zafrul said in a post on X. YTL Power, a subsidiary of YTL Corp Bhd, will also lead efforts to build a comprehensive AI ecosystem through partnerships with technology providers, suppliers, and local contractors. The minister highlighted that this partnership stems from Prime Minister Datuk Seri Anwar Ibrahim’s proactive international engagements, which are translating into transformative investments for Malaysia’s economic and tech sectors. The groundwork for this collaboration was laid in December 2023, during a meeting between Anwar, Nvidia CEO Jensen Huang, and YTL Power managing director Datuk Yeoh Seok Hong.

SEOUL, Samsung Electronics has signed a US$16.5 billion contract to manufacture chips for a major global company, the South Korean tech giant announced on Monday. The identity of the client and specific contract terms will remain confidential until the deal concludes at the end of 2033. Following the announcement, Samsung’s shares rose 3.5 per cent. The deal, sealed over the weekend, marks a significant win for Samsung’s contract chip manufacturing (foundry) business, which counts companies like Tesla and Qualcomm among its clients. Despite this, Samsung has faced stiff competition from industry leader TSMC, which supplies chips to tech giants such as Apple and Nvidia. The announcement comes amid South Korea’s broader push to deepen trade ties with the United States, particularly in semiconductor and shipbuilding sectors, as both nations explore ways to avoid potential 25 per cent tariffs on certain exports. Analysts noted the deal could help Samsung recover lost ground in the AI chip race, which has weighed on its profits and market share. However, the impact on its delayed Texas chip facility remains uncertain, especially as the plant has yet to secure major customers. According to BNK Investment & Securities analyst Lee Min-hee, the new order is unlikely to involve Samsung’s latest 2-nanometer technology, as the company continues to face challenges improving yields at the advanced node. Samsung has been steadily losing foundry market share to TSMC, underlining ongoing hurdles in advancing cutting-edge chip production needed to attract top-tier clients.

KUALA LUMPUR, Chitose Group, the operator behind the world’s largest flat-panel photobioreactor-based microalgae facility in Kuching, Sarawak, is setting an ambitious target: developing 10 million hectares of large-scale microalgae farms across Malaysia, Indonesia, India, the Middle East, and other regions by 2050. This bold expansion could tap into a potential global market valued at US$4.2 trillion (RM17.72 trillion). Ryosuke Koike, Executive Officer of Chitose Bio Evolution Pte Ltd Ryosuke Koike, Executive Officer of Chitose Bio Evolution Pte Ltd, the group’s holding company, said Chitose aims to commercialise a wide range of microalgae-derived products, including chemicals, fuels, cosmetics, food, and animal feed. With operations already established in Japan, Singapore, Brunei, Thailand, and Vietnam, Chitose intends to build a sustainable algae-based industry as an alternative to fossil-fuel-based systems. “Our Matsuri initiative – a global collaboration with more than 100 partners, including major corporations, universities, and research institutions – supports this goal. Each production site will operate on a self-funded model, generating its own capital through cash flows,” Koike told Bernama. Rather than owning the production assets directly, Chitose aims to oversee and manage the full algae biomass supply chain. In Sarawak, the group is working alongside the Sarawak Biodiversity Centre, Japan’s Institute of Microalgal Technology (IMAT), and the New Energy and Industrial Technology Development Organization (NEDO) on a five-hectare facility established in 2023. With US$400 million in R&D funding from the Japanese government, the site is expected to expand by 2030 to support new product development from microalgal biomass. Koike highlighted Malaysia’s abundant sunlight and equatorial climate as ideal for photosynthesis-based algae farming. “Through microalgae cultivation, we aim to support global decarbonisation efforts and reduce reliance on fossil fuels,” he said, noting the wide applications of microalgae, including fuels, plastics, fibres, paint, and food. Despite global shifts in trade policies, Koike said Chitose remains focused on its long-term mission. “We’re building a society that can sustain humanity for the next thousand years,” he said. Beyond microalgae, Chitose is actively involved in sustainable agriculture in Malaysia. In Cameron Highlands, the group partners with over 20 local farmers to grow produce using eco-friendly Japanese soil cultivation methods. Chitose-brand fruits and vegetables are already sold at more than 70 retail outlets and featured in over 100 restaurants in Malaysia, Singapore, and Thailand. The group aims to increase this reach to 250 stores and 300 dining establishments across the region within three years. Koike added that Chitose is actively seeking local partners and distributors to expand its agricultural footprint, particularly in Kuala Lumpur and other urban areas. Chitose will also showcase its algae-based circular manufacturing model at Expo 2025 Osaka Kansai under the Japan Pavilion. The “Algal by Matsuri” exhibition will feature a variety of algae-derived products, from food and cosmetics to sustainable clothing, paint, PET resin, and even fuels for aviation and marine transport.