Samsung Electronics indicators $16.5 billion chip-supply assurance; stocks arise

Samsung Electronics has entered right into a $16.5 billion assurance for supplying semiconductors, a regulatory submitting confirmed Monday. Samsung stocks had been up greater than 2% in early buying and selling.

The South Korean reminiscence chipmaker, which failed to title the counterparty, discussed in its submitting that the efficient get started presen of the assurance used to be July 26, 2024 — receipt of orders — and its finish presen used to be Dec. 31, 2033.

It didn’t in an instant reply to a request for remark at the assurance.

The corporate stated in its submitting that main points of the disclosure, together with the title of the counterparty would now not be disclosed till the top of 2033, mentioning a request from the assurance counterparty “to protect trade secrets,” in line with a Google translation of the submitting 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 corporate stated.

Samsung’s foundry provider manufactures chips in keeping with designs supplied by way of alternative corporations. It’s the second one greatest supplier of foundry services and products globally, in the back of Taiwan Semiconductor Production Co.

Samsung is ready to bring profits on Thursday and expects its second-quarter earnings to greater than halve because it struggles to seize AI call for from rival SK Hynix. 

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