$16.4B contract does little to address conglomerate’s structural weaknesses, threatening Seoul’s AI and chip ambitions

Samsung Electronics’ $16.4 billion (22.8 trillion won) contract to produce Tesla’s next-generation AI6 chips at its Texas foundry marks a major commercial victory for South Korea’s largest conglomerate. 

But beneath the headlines, the deal exposes persistent weaknesses in Samsung’s foundry strategy, corporate governance and global competitiveness.

Samsung Electronics’ $16.4 billion (22.8 trillion won) contract to produce Tesla’s next-generation AI6 chips at its Texas foundry marks a major commercial victory for South Korea’s largest conglomerate. 

But beneath the headlines, the deal exposes persistent weaknesses in Samsung’s foundry strategy, corporate governance and global competitiveness.

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