Samsung Electronics shares came under pressure on Tuesday, following a rally the previous day after the South Korean technology company clinched a $16.5 billion deal to supply artificial intelligence chips to Tesla, according to a Reuters report.
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 chips, likely to be used in self-driving cars, humanoid robots, and data centres, without elaborating on the timing of the production.
The deal comes as Samsung has struggled to win major customers for its new Texas factory, partly due to low production yields of its cutting-edge chips.
Samsung Electronics, the world’s top memory chip maker, has suffered delays in supplying the latest high-bandwidth memory (HBM) chips to key U.S. customer Nvidia, a setback that has dented its profits and weighed on its stock.
Shares of Samsung recovered to around flat by midday on Tuesday, versus the broader market’s 0.6% gain.
The shares were down more than 2 per cent earlier in the session.
