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Updates with details of the deal
Investing.com-- Samsung Electronics (KS:005930) said on Monday it has signed a $16.5 billion contract to supply semiconductors to a major global corporation, marking a significant win for its foundry business.
The deal, finalised on Saturday, covers contract chip manufacturing, according to a regulatory filing. Details, including the identity of the partner and specific terms, will remain confidential until the end of 2033, the company said.
However, media reports stated that Tesla Inc (NASDAQ:TSLA) was the customer for the contract. Elon Musk’s Tesla is already a customer of Samsung chips.
Separately, Elon Musk said in a social media post that "Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency."
"This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house," he added.
Musk said, "Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. The strategic importance of this is hard to overstate. Samsung currently makes AI4."
The announcement lifted Seoul-listed Samsung shares by 3.5% to 68,200 won in early trading on Monday.
Samsung is the world’s largest memory chipmaker and the second-largest contract chip manufacturer after Taiwan Semiconductor Manufacturing Co (TW:2330).
The long-term contract highlights growing competitiveness in the contract chip space amid a global rush to secure advanced semiconductor capacity for sectors ranging from AI to data centres.