A Samsung flag flies outdoors the corporate workplace in Seoul, South Korea on February 05, 2024.
Chung Sung-jun | Getty Photos Information | Getty Photos
Samsung Electronics has entered right into a $16.5 billion contract for supplying semiconductors to a serious firm, a regulatory submitting by the South Korean firm confirmed Monday.
The reminiscence chipmaker, which didn’t identify the counterparty, talked about in its submitting that the efficient begin date of the contract was July 26, 2024 — receipt of orders — and its finish date was Dec. 31, 2033.
Samsung didn’t instantly reply to a request for feedback on the contract.
The corporate mentioned that particulars of the deal, together with the identify of the counterparty, is not going to be disclosed till the top of 2033, citing a request from the second social gathering “to guard commerce secrets and techniques,” in keeping with a Google translation of the submitting in Korean.
“For the reason that major contents of the contract have been not been disclosed as a result of want to take care of enterprise confidentiality, traders are suggested to take a position fastidiously contemplating the opportunity of adjustments or termination of the contract,” the corporate mentioned. Its shares have been up greater than 2% in early buying and selling.
Samsung’s foundry service manufactures chips primarily based on designs offered by different firms. It’s the second largest supplier of foundry companies globally, behind Taiwan Semiconductor Manufacturing Firm.
Samsung, which is about to ship earnings on Thursday, expects its second-quarter revenue to greater than halve. An analyst beforehand instructed CNBC that the disappointing forecast was because of weak orders for its foundry enterprise and as its reminiscence enterprise struggles to seize AI demand.
The corporate has fallen behind opponents SK Hynix and Micron in high-bandwidth reminiscence chips — a complicated kind of reminiscence utilized in AI chipsets.
SK Hynix, the chief in HBM, has change into the primary provider of those chips to American AI behemoth Nvidia. Whereas Samsung has reportedly been working to get the most recent model of its HBM chips licensed by Nvidia, a report from a native outlet suggests these plans have been pushed again to at the very least September.
