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Samsung's Chip Deal: A New Era Ahead

02 Aug, 2025

Samsung Electronics is optimistic about its future after signing a $16.5 billion chip deal with Tesla. A new trade agreement between South Korea and the U.S. reduces tariffs on imports, easing business uncertainties. Despite a significant drop in profits in its chip division due to supply issues and market challenges, Samsung anticipates recovering in the second half of the year. The company is focusing on advanced technology, including AI chips, to stay competitive. With plans for a new factory in Texas, Samsung aims to expand its contract chip manufacturing capabilities, signaling a strategic pivot in its business model.

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