Samsung Electronics has secured a record-breaking semiconductor order worth 22.8 trillion won (about 16.5 billion US dollars), marking the largest chip contract in the company’s history, according to South Korea’s Yonhap News Agency on Monday.
The South Korean tech giant disclosed in a regulatory filing that the contract will be completed by 31 December 2033. While Samsung did not name the client or reveal further details due to business confidentiality, Bloomberg News reported that the deal is with Elon Musk’s Tesla.
Elon Musk confirmed the Bloomberg report via X, stating that the goal is to build a factory in Taylor, Texas, to produce Tesla’s next-generation AI6 chip.
The deal represents around 7.6 percent of Samsung’s total revenue from the previous year and positions it as the largest semiconductor manufacturing contract the company has ever received.
Analysts believe this contract will offer a significant boost to Samsung’s chip-making division, which has been trailing behind industry leader Taiwan Semiconductor Manufacturing Company (TSMC).
Following the announcement, Samsung’s stock surged by 5 percent, reaching its highest level since September.
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