Samsung Electronics shares fall 1% after rallying on Tesla deal
FILE PHOTO: A view of a Samsung Electronics Vietnam factory in Bac Ninh province, Vietnam, April 3, 2025. Vietnam, with a tariff rate of 46 per cent imposed by U.S. President Donald Trump, is one of six countries in the nine Southeast Asian region slapped with much bigger-than-expected by the U.S. REUTERS/Stringer/File Photo
Seoul :Shares in Samsung Electronics fell 1 per cent on Tuesday after the South Korean technology company staged a powerful rally in the previous session on news of a $16.5 billion deal to supply chips to Tesla.
The deal could bolster the technology company's unprofitable contract business, but Samsung faces challenges in securing additional large customers, analysts said.
Tesla CEO Elon Musk said late on Sunday that Samsung's new chip factory in Taylor, Texas, would make the auto company's next-generation AI6 chip, without elaborating on the timing of the production.
