Samsung Electronics shares slipped on Tuesday, giving back some of the gains from the previous day’s rally that followed news of a major $16.5 billion chip deal with Tesla. The South Korean tech giant, still grappling with production challenges at its U.S. facility, finds itself at the center of both investor excitement and cautious skepticism.
The buzz began after Tesla CEO Elon Musk announced on Sunday that Samsung’s newly built semiconductor factory in Taylor, Texas, will produce the automaker’s next-generation AI6 chips.
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These chips are expected to power Tesla’s future self-driving cars, humanoid robots, and advanced data centers. However, Musk offered no clear timeline for when production would begin.
While the deal marks a significant win for Samsung—especially at a time when it has struggled to secure large clients for its Texas facility—analysts point to persistent concerns around production yields of its most advanced chips.
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The plant has reportedly faced difficulties in delivering cutting-edge semiconductors at scale, which has limited its competitiveness in a fiercely contested global chip market.
Samsung, the world’s leading memory chip producer, has also seen setbacks in supplying its latest high-bandwidth memory (HBM) chips to Nvidia, one of its most important clients. Delays in meeting Nvidia’s expectations have hurt the company’s earnings and weighed on investor confidence.
On Tuesday morning, Samsung shares initially dropped more than 2% before rebounding to trade flat by midday. In contrast, South Korea’s broader stock market index posted a 0.6% gain, highlighting investor caution specific to Samsung’s chip business despite the headline-grabbing Tesla deal.
As the semiconductor industry braces for the next wave of AI-driven demand, Samsung’s ability to deliver on this high-stakes agreement with Tesla may prove critical—not just for its bottom line, but for its position in the global tech landscape.
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