Samsung Scores $16.5B Tesla Chip Deal to Revive Foundry Business
Samsung Electronics has inked a major deals worth $16.5 billion with a leading electric vehicle manufacturer, a move that could help revitalise its struggling contract chip manufacturing division. The agreement, lasting until 2033, is a significant win for Samsung, which has seen several high-profile clients defect to rivals in recent years.
The South Korean tech giant has secured this long-term supply deals with Tesla, a prominent name in the electric vehicle industry. This partnership could provide a much-needed boost to Samsung's foundry division, which has been grappling with losses. In the first half of this year alone, the division has haemorrhaged over 5 trillion won (approximately $3.63 billion).
The Tesla deals marks a turning point for Samsung in its quest to rebuild its presence in the global chip manufacturing market. In recent times, Samsung's foundry division has lost several key clients to competitors like TSMC. This new deals, however, signals a significant step in Samsung's efforts to reclaim its position in the industry.
Samsung Electronics has secured a $16.5 billion chip supply deals with Tesla, running until 2033. This long-term agreement could provide a much-needed boost to Samsung's struggling contract chip manufacturing division. The deals comes at a time when Samsung's foundry division has been facing significant losses and losing clients to rivals.
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