Samsung Electronics signs secretive $16.5 billion chip-supply deal, shares hit four week high
Samsung Electronics' shares rose by as much as 3.5% in Seoul after the announcement, the company's biggest intraday gain in almost four weeks, according to a Bloomberg report.
In its filing, the company noted that the deal signed on Saturday was related to contract chip manufacturing but stated that other details of the agreement including the name of its counterpart and the terms would not be disclosed until the end of 2033 in order to 'protect trade secrets.'
'Since the main contents of the contract have not been disclosed due to the need to maintain business confidentiality, investors are advised to invest carefully considering the possibility of changes or termination of the contract,' a CNBC report quoted the filing as saying.
Samsung Electronics is among the biggest players in contract chip manufacturing which is also known as foundry services. It is the second biggest provider of these services globally, only behind Taiwan Semiconductor Manufacturing Company (TSMC). While Samsung counts Tesla and Qualcomm among its customers, TSMC has customers like Apple and Nvidia.
The announcement of the new deal comes at a time when Samsung has been struggling to compete in the race for making artificial intelligence chips that has led to a hit on its profits and share price.
Samsung has been losing share to TSMC in contract manufacturing owing to technological challenges that the South Korean giant faces in mastering advanced chip manufacturing, a Reuters report cited analysts as saying.
Samsung is all set to deliver its earnings call on Thursday where it expects the second-quarter profit to more than halve, as per a CNBC report.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
4 hours ago
- Business Standard
US smartphone market sees slow growth as India-made phones surge: Canalys
In response to tariffs, Apple earlier this year sought to make most of its iPhones sold in the United States at factories in India Reuters The United States smartphone market grew just 1 per cent in the second quarter as vendors front-loaded device inventories amid tariff concerns, while supply chain negotiations between China and the United States boosted shipments of Indian-made phones, research firm Canalys said on Monday. The imposition of US tariffs has prompted smartphone makers to reorganize their supply chains to avoid higher import costs and protect their margins. China, a major hub for electronics manufacturing, has been targeted by significant tariffs, pushing hardware makers to explore other Asian countries to maintain low production costs. In response to tariffs, Apple earlier this year sought to make most of its iPhones sold in the United States at factories in India. However, the move drew criticism from US President Donald Trump, who threatened additional tariffs on the Cupertino-based company if it did not produce domestically. "India became the leading manufacturing hub for smartphones sold in the US for the very first time in Q2 2025, largely driven by Apple's accelerated supply chain shift to India amid an uncertain trade landscape between the US and China," said Sanyam Chaurasia, Principal Analyst at Canalys. "The market only grew 1 per cent despite vendors front-loading inventory, indicating tepid demand in an increasingly pressured economic environment and a widening gap between sell-in and sell-through," said Runar Bjorhovde, Senior Analyst at Canalys. The share of US smartphone shipments assembled in China fell from 61 per cent in the second quarter of 2024 to 25 per cent in the second quarter of 2025. India picked up most of the decline, with Indian-made smartphone volume growing 240 per cent year-on-year. iPhone shipments declined by 11 per cent while Samsung shipments grew 38 per cent in the second quarter. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
India Today
5 hours ago
- India Today
Samsung Galaxy Z Fold 7 faces major durability test, surprising results inside
The Samsung Galaxy Z Fold 7 has just been put through its paces in a fresh durability test by popular YouTuber JerryRigEverything, and the results might surprise those who still question the toughness of foldable phones. For those who don't know, Zack Nelson (the man behind the channel) is best known for torturing smartphones on his YouTube channel with several tests, including bending, scratching, and burning, to name a few. As is tradition, he took Samsung's latest and greatest foldable for a spin with his usual tools and techniques, and the Galaxy Z Fold 7 did not disappoint. advertisementFirst, let's get into the durability side of things. The scratch test started on the cover screen and back panel of the Galaxy Z Fold 7, both of which are protected by Gorilla Glass Ceramic 2. Like most modern smartphones, scratches began to appear at level 6 of the Mohs hardness scale, with deeper grooves at level 7. The main inner display, though more delicate, held up well too. The aluminium frame didn't fare as well under sharp tools, but that's not something everyday users need to worry notable improvement on the Galaxy Z Fold 7 is the camera ring design. Unlike its predecessor, the Galaxy Z Fold 6, or even the Galaxy S25 Ultra, Samsung has reverted to a more robust metal setup. Zack tried to dig into the camera rings with his blade, but to no avail — the camera rings stayed in place, showing impressive strength. While the Samsung Galaxy Z Fold 7 doesn't offer a traditional IP68 rating like regular bar phones — where the '6' stands for complete dust protection — the phone still has an IP48 rating. This means the '4' denotes that the phone can handle dust or solid objects 1mm or larger in size. That said, Zack went all in by sprinkling fine dust over the hinge and inner screen and opened and closed the phone multiple times. To everyone's surprise, the phone's hinge continued to function smoothly, without any visible said, the flame test — where a lighter is held to the screen — left lasting marks on both displays, as expected. The cover screen showed damage after about 15 seconds, and the inner display lasted roughly 10 seconds. Neither recovered, but that's the typical nature of OLED displays under direct flame. Credit: JerryRigEverything/ YouTube Then came the all-important bend test. With pressure applied from both directions — folded and unfolded — the Galaxy Z Fold 7 managed to survive without breaking, bending or snapping. Considering this is the thinnest foldable phone yet, that's impressive. And speaking of thinness, a recent study conducted by the Korean Consumer-Centred Enterprise Association found that Samsung's official thickness claim of 8.9mm is actually slightly overstated — the real number is 8.82mm. In contrast, competitors like Honor, Vivo, and Xiaomi have been caught stating lower thicknesses than what their phones actually for instance, advertises its Magic V5 as the world's thinnest foldable at 8.8mm, but real-world measurements show it to be over 0.5mm thicker. Vivo and Xiaomi have similar gaps between their claims and reality. On the other hand, Samsung seems to have gone the other way — not just matching its specs, but doing better. Now, this could point to a more conservative approach, or perhaps it's simply a genuine effort to avoid the marketing exaggeration we often see in this category. We think the what it's worth, the Samsung Galaxy Z Fold 7 has passed JerryRigEverything's brutal durability test with flying colours — and at the end of the day, that's all that matters.- Ends
&w=3840&q=100)
Business Standard
5 hours ago
- Business Standard
India needs more Apples: Replicating Apple's model to attract top brands
The PLI for smartphones was extremely sophisticated in design, a win-win for all parties Listen to This Article While the jury is still out on many of the production-linked incentive schemes (PLI) introduced by the Indian government, one undeniable success has been the scheme targeting smartphone production. Used largely by Apple, and to a lesser extent by Samsung, this scheme has helped India export over $24 billion worth of smartphones in FY25, up from virtually zero in FY18. Today, India is the world's third-largest smartphone exporter, after China and Vietnam. Apple now assembles about 20 per cent of all iPhones in India, and this percentage is set to keep rising. While local value addition is limited — still
