Samsung Electronics ( SSNLF ) has signed a $16.5 billion chip manufacturing deal with an undisclosed global company, bolstering its foundry business as it battles rivals like Taiwan Semiconductor Manufacturing Co. ( TSM ) in the AI chip race.

What Happened: On Monday, the South Korean tech giant said the contract, signed Saturday, covers chip production through 2033, but declined to name the client or reveal terms until completion, reported Reuters.

Samsung supplies chips to major players like Tesla Inc. ( TSLA ) and Qualcomm Inc. ( QCOM ) , though it trails TSMC, which counts Apple Inc. ( AAPL ) and Nvidia Corporation ( NVDA ) as clients.

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Why It's Important: The deal offers a potential turnaround for Samsung's foundry arm, which has faced delays at its new Texas plant and struggles with advanced 2-nanometer yields.

It also comes as South Korea races to secure U.S. trade agreements to avoid steep tariffs on chips and other exports. Samsung shares were up 2.43% at the time of writing.

Benzinga’s Edge Stock Rankings show that SSNLF maintains strong positive momentum over the short, medium and long term. More detailed performance metrics can be found here.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.