Technology giant Samsung Electronics has signed a $ 1.3 billion or $ 8 billion with an unidentified international organization. Under this agreement, Samsung will build a chip for the company. After the announcement of the agreement, Samsung's share price increased by 5.7 percent on Monday.
Samsung said in a statement that the agreement was signed last Saturday (July 23). This is a contract on a contract chip manufacturing. However, the detailed information of the agreement, such as the name or terms of the company, will not be published before the end of the contract in the 21st.
This agreement to make the chip is a time when Samsung is lagging behind the AI (artificial intelligence) chip production. The company is facing financial loss and the share price has dropped.
Tesla and Qualcomm are among Samsung's Foundry or Chip Business customers. On the other hand, the list of big rival TSMC customers is in the list of companies like Apple and Nvidia.
This big order is also significant. South Korea is currently trying to build a partnership in the chip and shipbuilding sector with the United States. This is because the country is trying at the last minute to avoid possible 20 percent US tariffs.
However, it is not yet clear what the contract will have on the new factory production plan in Samsung's Texas. It should be noted that the Texas factory is not getting any major customer its production is delayed.
Lee Min-Hi, an analyst at BNK Investment and Securities, said Samsung is currently trying to successfully increase their latest 2-nanometer technology production. However, Samsung's technology is less likely to be used in chips made under this order.
According to analysts, Samsung is losing the market to TSMC in the chip construction competition. They are not able to draw themselves from TSMCs like Apple and NVDia because they are lagging behind in the production of advanced technology chips.
References: Reuters
