Samsung signage during the Nvidia GPU Technology Conference (GTC) in San Jose, California, US, on Thursday, March 20, 2025.
David Paul Morris | |
Samsung Electronics has entered into a $16.5 billion contract for supplying semiconductors, a regulatory filing showed Monday. Samsung shares were up more than 2% in early trading.
The South Korean memory chipmaker, which did not name the counterparty, mentioned in its filing that the effective start date of the contract was July 26, 2024 — receipt of orders — and its end date was Dec. 31, 2033.
It did not immediately respond to a request for comment on the contract.
The company said in its filing that details of the disclosure, including the name of the counterparty would not be disclosed until the end of 2033, citing a request from the contract counterparty “to protect trade secrets,” according to a Google translation of the filing in Korean.
“Since the main contents of the contract have been 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,” the company said.
Samsung’s foundry service manufactures chips based on designs provided by other companies. It is the second largest provider of foundry services globally, behind Taiwan Semiconductor Manufacturing Co.
Samsung is set to deliver earnings on Thursday and expects its second-quarter profits to more than halve as it struggles to capture AI demand from rival SK Hynix.
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