SEOUL— Samsung Electronics announced Monday that it has landed a massive 22.8 trillion won ($16.4 billion) semiconductor order from an undisclosed customer, marking the largest chip contract in the company’s history.
In a regulatory filing, the South Korean tech giant confirmed it had signed a long-term foundry agreement, with the contract slated for completion by December 31, 2033. While Samsung did not reveal the client’s identity or specific project details, it cited “management confidentiality,” according to a report by Yonhap news agency.
The deal represents approximately 7.6% of Samsung’s total revenue of 300.9 trillion won in 2024 and is expected to provide a significant boost to its foundry business, which has long trailed industry leader Taiwan Semiconductor Manufacturing Company (TSMC).
The announcement comes at a critical time for Samsung. In its recent earnings guidance for the second quarter, the company projected an operating profit of 4.59 trillion won and sales of 74 trillion won. However, the results fell short of market expectations, largely due to weak performances in the foundry and System LSI (Large Scale Integration) segments.
Following news of the deal, Samsung’s stock climbed 2.43% to 67,500 won in morning trading, outperforming the broader KOSPI index, which dipped 0.26%.
Meanwhile, the South Korean presidential office confirmed that President Lee Jae Myung met with Samsung Electronics Chairman Lee Jae-yong last year, continuing a series of meetings with business leaders. According to presidential spokesperson Kang Yu-jung, the two exchanged views over dinner without a formal agenda, discussing a broad range of issues related to trade and investment.
The engagement comes amid ongoing trade negotiations between South Korea and the United States. The two countries are working to finalize a comprehensive trade deal before the August 1 deadline, one that aims to reduce the current 25% reciprocal tariffs on Korean exports and includes provisions for trade, investment, and security cooperation. (Source: IANS)
