Samsung Signs $16.5 Billion Semiconductor Deal Through 2033

Samsung Electronics has secured a $16.5 billion semiconductor supply contract spanning from July 2025 to December 2033 with a major global corporation, widely presumed to be Tesla for its Full Self-Driving (FSD) chips. This long-term deal, kept confidential until 2033 to protect trade secrets, marks one of Samsung's largest chip manufacturing agreements and is seen as a strategic win to bolster its position against rival Taiwan Semiconductor Manufacturing Company (TSMC). The contract supports Samsung's foundry business amid rising global demand for advanced chips in sectors such as automotive, AI, and data centers, although Samsung faces challenges in competing with TSMC in cutting-edge chip technologies. Following the announcement, Samsung's shares rose significantly, reflecting investor optimism about the company's growth prospects. Additionally, Samsung is investing heavily in semiconductor R&D and manufacturing expansion, including a $16.5 billion investment in its South Korean NRD-K complex and a $37 billion U.S. expansion supported by the CHIPS Act, aiming to strengthen supply chain resilience and capture future AI-driven computing demand. These moves highlight Samsung's commitment to maintaining leadership in the semiconductor sector despite market and geopolitical challenges.