Samsung’s disturbing foundry unit on Monday announced a surprise in South Korea local time. The foundry announced that it would provide automobile manufacturer Tesla with chips by 2033. The transaction is worth $ 16.5 billion and is huge for the Samsung Foundry, which is far from each other for TSMC in the contract chip manufacturing business.
The Samsung Foundry production is well down by TSMC. This measures a percentage of Silicon Weear cutting control (QC) percentage, which is distributed by the maximum use of the death toll that can produce a waifer. A low percentage means that good chips are not being prepared, and as a result, the cost of chips is high that can be used. In the case of production, big name chip designers such as Qualcomm have cost the Samsung Foundry business.
TSMC had 67.6 % of the contract chip manufacturing business in Q1. The Samsung Foundry was second with 7.7 % shares. The contract with Tesla can help create more business for the Samsung Foundry. The Samsung Unit’s new new clients have been difficult to find and maintain the current. The agreement will reduce red ink, which is spreading Samsung’s foundry business, says Pak Yuk, an analyst at Koom Securities. In the first half of this year, the Samsung Foundry lost more than 5 trillion ($ 3.63 billion).
The TSMC client list includes Tech’s largest names, including Apple (its number one client), NVIDIA, Qualcomm, AMD, and Medetic. It seems that Tesla will need the Samsung Foundry to provide it with its most sophisticated 2NM chips. This is the word of BN’s Investment and Securities analyst Lee Mann.
Investors look happy with this announcement as Samsung’s shares increased by 6.8 % on Monday, increasing from 4,500 Korean win (45 3.45) to 70,400 Korean One ($ 50.68). The feeling is that with this order, the Samsung Foundry has turned a corner in a bid to become more competitive with TSMC.
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