Samsung Electronics Wins 22.8 Trillion Won Order to Supply AI Chips to Tesla

Samsung Electronics Co. said Monday it has secured a 22.8 trillion-won ($16.4 billion) order to supply artificial intelligence (AI) semiconductors to a major undisclosed customer, later believed to be US tech giant Tesla.In a regulatory filing, the South Korean tech giant said it signed a foundry contract set to be completed by Dec. 31, 2033, Yonhap News Agency reported.The contract represents 7.6% of Samsung Electronics' total revenue of 300.9 trillion won last year and marks the largest chip order ever won by Samsung Electronics.The company did not disclose the identity of the client or the specifics of the deal, citing "management confidentiality."Later in the day, however, Tesla founder Elon Musk said on his social media account that Samsung Electronics will manufacture Tesla's next-generation AI6 chip at its new semiconductor plant in Texas, possibly referring to the multibillion-dollar contract announced earlier by the South Korean chipmaker.In its earnings guideline released earlier this month, Samsung Electronics estimated an operating profit of 4.59 trillion won and sales of 74 trillion won for the second quarter.In particular, operating profit failed to meet market expectations, mainly due to the sluggish performance of the foundry and the System Large Scale Integration (LSI) divisions.Following the announcement, shares of Samsung Electronics rose 5.61% to trade at 69,600 won, sharply outperforming the broader KOSPI's 0.20% gain.