Samsung Wins $16.4 Billion Semiconductor Order

Samsung Electronics said Monday it has won a 22.8 trillion won ($16.4 billion) order to supply semiconductors to an undisclosed major customer.

According to Yonhap News Agency, the company said in a regulatory filing that it signed a foundry contract scheduled to be completed by December 31, 2033. It did not disclose the identity of the customer or details of the contract, citing “management confidentiality.”

This contract represents 7.6% of the company’s total revenue of 300.9 trillion won last year and represents the largest chip order the company has ever won.

The contract is expected to provide a significant boost to the company’s foundry division, which has long struggled to catch up with global industry leader Taiwan Semiconductor Manufacturing Co. (TSMC).

In its earnings report released earlier this month, Samsung Electronics estimated operating profit at 4.59 trillion won and sales at 74 trillion won for the second quarter.

In particular, operating profit failed to meet market expectations, primarily due to sluggish performance in its foundry and system LSI divisions.

Following the announcement, the company’s shares rose 2.43% to trade at 67,500 won at 9:37 a.m., outperforming the 0.26% decline in the Kospi index.