Tesla (TSLA) Likely Behind Samsung’s $16.5 Billion Chip Deal Through 2033

Samsung Electronics has signed a major semiconductor manufacturing agreement worth $16.5 billion, securing one of its largest-ever foundry contracts. The deal, which extends through 2033, involves producing advanced chips for a global technology company.

📌 Key Details:

  • The contract was disclosed in a regulatory filing dated July 26, but the client’s identity remains undisclosed under confidentiality terms until the end of the contract.
  • According to multiple media reports, the deal is believed to involve Tesla, potentially tied to chips for autonomous driving and AI workloads. Samsung has an existing relationship with Tesla, including prior work on FSD hardware.
  • The agreement is expected to support Samsung’s non-2nm node production, as the company continues to improve its competitiveness with TSMC in leading-edge processes.
  • Samsung’s share price rose around 3.5% following the announcement.

🔍 Why It Matters:
This contract provides long-term revenue visibility for Samsung’s foundry unit, which has trailed TSMC in securing large U.S.-based tech customers. It also signals growing demand for customized chips tailored for automotive and AI applications.

While official confirmation of the client is lacking, the reported involvement of a high-profile EV and tech firm highlights Samsung’s potential to regain ground in the global foundry race.