Samsung Electronics signs $16.5 billion deal to make chips for global firm

SEOUL: Samsung Electronics said on Monday it has signed a $16.5 billion deal to supply chips for an unidentified major global company, sending its shares up 3.5%.

The South Korean tech giant said the deal signed on Saturday was for contract chip manufacturing and details of the agreement including the counterpart and terms would not be disclosed until the contract is completed at the end of 2033.

The deal comes as Samsung is struggling to compete in the race to make artificial intelligence chips, which has hit its profits and share price.