Samsung $16.5B Foundry Deal Disclosed in Filing

Seoul, South Korea - Samsung Electronics filed a regulatory disclosure on Monday, reporting a semiconductor consignment production supply contract valued at KRW 22.76 trillion (approximately US$16.54 billion).

The contract period extends from July 24, 2025, to December 31, 2033, as stated in the filing.

The company identified the counterparty as a "global large enterprise" without providing further details.

Samsung disclosed that the contract amount represents 7.6 percent of its recent annual revenue of KRW 300.87 trillion (US$218.67 billion), based on its 2024 consolidated financial statements.

The company calculated the won figure using an exchange rate of KRW 1,376.00 per dollar as of the date of filing.

The agreement was executed on July 26, 2025, with the contract terms becoming effective on July 24, 2025, as stated in the filing.

Samsung noted that the contract amount and duration may change during business operations.

Under the agreement, Samsung will provide semiconductor contract manufacturing services.

The company classified the arrangement as falling under the category of "other sales and supply contracts" in its regulatory categories.

Samsung operates semiconductor manufacturing facilities in South Korea and Texas.

The foundry business involves producing chips designed by companies that focus on design rather than manufacturing.

The filing indicated that contract details, including customer identity and key terms, will remain confidential until December 31, 2033, citing the customer's business secrecy requirements.

Samsung advised investors to consider potential contract modifications or termination when making investment decisions, given the undisclosed nature of major contract provisions.