Tesla signs $16.5bn chip deal with Samsung
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Samsung's huge $16.5 billion order for Tesla 2nm chips will be a 'loss-making order' but the semiconductor firm takes it as a 'blessing in disguise'.
Tesla CEO Elon Musk said the U.S. automaker had signed a $16.5 billion deal to source chips from Samsung Electronics, a move expected to bolster the South Korean tech giant’s loss-making contract manufacturing business.
The Korean group has landed a much-needed contract to supply chips to Elon Musk's electric-car maker. It gives Samsung the chance to show its products can compete with TSMC. But its unprofitable foundry business needs more customers to properly turn around its fortunes.