Samsung signed a $16.5 billion chip deal, likely with Tesla
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On Monday, Samsung Electronics disclosed it signed a $16.5 billion contract to deliver semiconductors to a major international firm. In a brief regulatory filing, the South Korean tech giant disclosed that the agreement took effect on July 26, 2025, and will run until December 31, 2033. While Samsung did not identify the client or share specific details of the technologies involved, multiple sources familiar with the matter told media outlets that Elon Musk’s Tesla is the company behind the deal. Samsung says it intended to protect trade secrets Samsung Electronics said it would disclose the agreement’s details, including the counterparty and terms, only at the end of 2033. The company explained in its regulatory filing that this decision was made “to protect trade secrets” at the request of its counterpart. The tech firm even cautioned its investors, stating: “Since the main contents of the contract have not been disclosed due to the need to maintain business confidentiality, investors are advised to invest carefully, considering the possibility of changes or termination of the contract.” While the company declined to confirm the client’s identity, a source familiar with the deal said the contract was signed with Tesla. While Samsung has not publicly commented on Tesla, its foundry unit already supplies the automaker, and the new deal is expected to strengthen that partnership. Other industry insiders say that the South Korean tech giant signed with Qualcomm. Earlier this year, Han Jin-man, who leads Samsung Foundry, held meetings with Tesla and Qualcomm during a US visit, prompting speculation that this deal is linked to those talks. So far, Samsung shares have jumped 3.5% in early trading, their biggest intraday gain in almost four weeks. The company is still the world’s second-largest foundry service provider, trailing only Taiwan Semiconductor Manufacturing Co. However, TSMC maintains a considerable…
Filed under: News - @ July 28, 2025 5:25 am