Samsung’s $16.5bn chipmaking deal with Tesla is set to be a crucial test of the Korean tech group’s ability to meet the high demands of Elon Musk while making the corporate changes needed to revive its struggling semiconductor business.

Samsung Electronics said a trade deal between South Korea and Washington will help to alleviate business uncertainty, as the technology giant forecast more major chip orders after signing a $16.5 billion deal with Elon Musk's Tesla .

South Korea's Samsung Electronics signed a $16.5 billion, eight-year contract to supply semiconductors to a global company, which Elon Musk said was Tesla.,