Story: Samsung Electronics shares jumped Monday (July 28) on news about a big problem to make chips for Tesla.
Elon Musk says that his EV company has signed a contract of $ 16.5 billion for the delivery of semiconductors.
That should be a big boost for Samsung's loss-making contract chip business activities.
Shares in the company rose around 6% by the beginning of the afternoon after the news.
Musk said that a new Samsung facility in the US would be dedicated to the production of the chips.
That could refer to a planned factory in Taylor, Texas, who has had to deal with delays in the midst of the fight of the South Korean company to win and retain large customers.
Musk said that the plant was favorable near his house, and he would personally inspect it to speed up progress.
It is all very up -to -date for Samsung, which has fallen behind competitors in the race to deliver AI chips.
Local Rival SK Hynix and Taiwan Giant TSMC are both seen that they have striped ahead.
That has weighed heavily on the profit and the share price of Samsung.
Analysts say that the deal can also be useful for South Korea, because it is fighting to conclude a trade agreement with the US
The country is looking for partnerships about chips and shipbuilding as part of conversations to prevent a potential rate of 25%.
