Samsung Electronics Co. Ltd. (OTC:SSNLF) shares declined 2.54% on Tuesday morning on the South Korean exchange following Tesla Inc.‘s (NASDAQ:TSLA) confirmation of a $16.5 billion chip manufacturing partnership. Shares dropped from 70,800 won to 69,000 won before recovering to 70,400 won ($50.62).
Tesla CEO Elon Musk confirmed on Monday that his company will manufacture next-generation AI6 chips at Samsung’s Texas facility through December 2033.
Tech analyst Ming-Chi Kuo called the deal a “valuable opportunity” for Tesla to gain foundry experience, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) “would never allow.” Samsung holds 8% of the global foundry market versus TSMC’s 67%.
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