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.
