Samsung’s Tesla Order Fuels Recovery Bets Despite Chip Woes

Samsung Electronics' $16.5 billion chipmaking deal with Tesla has sparked renewed optimism in the company's foundry business, which was previously written off by many investors. The deal, which will see Samsung produce chips for Tesla's electric vehicles, suggests that the tech giant's foundry operations are still in demand despite the ongoing global chip shortage. The agreement is a significant boost for Samsung, as it seeks to expand its presence in the lucrative automotive semiconductor market. The deal also highlights Tesla's confidence in Samsung's manufacturing capabilities, as the electric vehicle maker looks to secure a stable supply of chips for its vehicles. While the global chip shortage continues to pose challenges for the electronics industry, Samsung's partnership with Tesla suggests that the company's foundry business may be poised for a recovery. Investors are now closely watching the developments in this sector, as they seek to gauge the long-term prospects of Samsung's semiconductor operations.