
Samsung Electronics (005930.KS) shares edged up 0.3% on Tuesday, extending gains after a $16.5 billion deal to supply AI chips to Tesla (TSLA.O).
While the deal boosts Samsung’s struggling contract chipmaking business, analysts warn it still lags behind TSMC (2330.TW) in logic chips and faces challenges in memory chips, where SK Hynix (000660.KS) leads. Delays in supplying Nvidia (NVDA.O) with advanced HBM chips have also hurt profits.
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Samsung Chairman Jay Y. Lee traveled to Washington, with reports suggesting he may support U.S.-South Korea trade talks, though the company called it a routine business trip.
Tesla CEO Elon Musk said that Samsung’s Texas plant will produce the next-generation AI6 chips for self-driving cars and robots. Analysts say the deal could ease concerns over tariffs and supply chains, but note Samsung must improve yields at its new factory.
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