Samsung Signs $16.5 Billion Contract to Supply Semiconductors, Stocks Rise 2%

Samsung Electronics, the South Korean giant in the chip industry, announced the signing of a major contract to supply semiconductors worth $16.5 billion, according to official data released on Monday, July 28. Following this announcement, the company's stocks jumped by more than 2% during morning trading.

Samsung ranks second globally in the contract chip manufacturing market, lagging behind its Taiwanese competitor, TSMC, which leads the sector. The company did not disclose the identity of the beneficiary of the new deal.

This announcement comes at a time when Samsung is facing significant challenges in the artificial intelligence market, as it is expected to announce a more than 50% drop in profits for the second quarter compared to previous periods, due to strong competition from SK Hynix, which has strengthened its position in the advanced memory chip market.

Samsung continues to strengthen its position as one of the key players in the semiconductor industry, despite the global challenges facing the sector. The company is expected to provide more details about its financial performance and future strategies during the scheduled disclosure at the end of the week.