Samsung signs $16.5 billion semiconductor manufacturing contract

Published 28/07/2025, 09:22
Samsung signs $16.5 billion semiconductor manufacturing contract

SEOUL - Samsung Electronics Co (F:SAMEq). Ltd announced Monday it has secured a semiconductor contract manufacturing agreement valued at approximately $16.5 billion with an unnamed "large global company."

The contract, which takes effect July 24, 2025, will run through December 31, 2033, according to a company statement filed with the London Stock Exchange (LON:LSEG). The deal represents about 7.6% of Samsung (KS:005930)’s annual revenue based on its consolidated financial statements from 2024.

Samsung did not disclose the identity of the counterparty, citing confidentiality agreements. The South Korean tech giant indicated that details including the contract name, counterparty, and key terms will remain confidential until the first business day following the withholding period, which ends December 31, 2033.

The company noted that the contract value and period may vary depending on operational circumstances. No advance payment terms were specified in the announcement.

The contract value converts to approximately 22.76 trillion Korean won based on the July 28, 2025 exchange rate of 1,376 won per U.S. dollar.

Samsung cautioned investors that key details of the agreement remain undisclosed due to business confidentiality requirements, and advised them to consider the possibility of future changes to or termination of the contract.

The announcement was made through a regulatory filing based on a press release statement from the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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