Samsung Electronics has welcomed a new trade agreement that reduces tariffs on South Korean imports to the U.S. from 25% to 15%, citing it as a key factor in reducing business uncertainty. The company expects this to reinforce its recent $16.5 billion chip supply deal with Tesla and bolster future chip orders.

Tesla Deal: $16.5 Billion Chip Supply Agreement

Samsung signed a $16.5 billion contract to supply AI chips to Tesla. The chips will be produced in Samsung’s upcoming semiconductor plant in Texas, scheduled to begin operations in 2026.

Financial Snapshot: Q2 2025

• Revenue: 74.6 trillion won

• Operating Profit: 4.7 trillion won

• Chip Division Profit: Down 94% YoY

Samsung’s chip business was affected by U.S. export restrictions on sales to China and delivery delays of high-bandwidth memory (HBM) chips to clients like Nvidia.

Future Outlook

• Samsung expects a recovery in H2 2025, driven by increased AI demand.

• Development of HBM4 chips is underway, with samples already sent to Nvidia and others.

Strategic Importance

The reduction in tariffs is seen as a significant benefit for Samsung’s global supply chain and its push to expand foundry services. The Tesla deal, in particular, is expected to strengthen Samsung’s position in the high-performance AI chip market.

Samsung continues to pursue growth in the AI and chipmaking sectors amidst evolving trade and tech regulations.