Home / Business and Economy / Samsung Secures Massive $16.5B Chip Contract, Shares Soar
Samsung Secures Massive $16.5B Chip Contract, Shares Soar
28 Jul
Summary
- Samsung signs $16.5B contract for semiconductor supply
- Contract runs from July 2024 to December 2033
- Samsung shares rise 3.5% after announcement
In a significant development, Samsung Electronics has announced a $16.5 billion contract to supply semiconductors to a major global corporation. The South Korean tech giant revealed the details of the deal in a filing, stating that the contract will commence on July 26, 2024, and conclude on December 31, 2033.
The announcement has had a positive impact on Samsung's stock performance, with the company's shares rising by as much as 3.5% in Seoul, marking the biggest intraday gain in nearly four weeks. However, Samsung has chosen to withhold the name of the buyer, citing the need to maintain business confidentiality and protect trade secrets.
Despite the lack of specific details, the long-term nature of the contract and the substantial value of the deal underscore Samsung's continued dominance in the semiconductor industry. The news comes at a time when the company has been facing challenges in the race for artificial intelligence chip manufacturing, which has impacted its profits and share price.
