Samsung eyes boost in orders as tariff tensions ease, Tesla deal gains traction
Samsung electronics has welcomed the recent tariff agreement between South Korea and China. As reported by Reuters, the company has said that the tariff agreement will help in reducing trade uncertainty and will also stabilise its supply chain. Along with this, Samsung also expressed optimism about its growing partnership with Tesla. The company expect a boost in component orders post the deal with Tesla. Recently, Samsung closed a $16.5 billion chip supply deal with Tesla. “Building on this milestone, we anticipate securing additional orders from large customers,” stated Samsung Vice President Noh Mi-jung during an earnings conference call on Thursday. She also confirmed that Samsung’s new U.S. chip factory in Taylor, Texas, is on track to begin production in 2026.Samsung believes that the tariff deal finalised earlier this month is said to ease cross-border tensions and streamline customs procedures for semiconductor products. Samsung, which operates major manufacturing hubs in both countries, said the agreement will help mitigate risks and improve cost efficiency.
Tariff agreement reduces uncertainty
A key factor in Samsung’s renewed confidence is a trade deal between Washington and Seoul. While the agreement will see the U.S. impose 15% tariffs on imports from South Korea, Samsung views this as a reduction in overall uncertainty. “We believe that the uncertainty has been reduced through the conclusion of negotiations between the United States and South Korea,” said Samsung Chief Financial Officer Park Soon-cheol. He added that the company is closely monitoring the follow-up discussions to formulate its response strategy.
Samsung Tesla partnership important for Samsung
Tesla CEO Elon Musk recently confirmed that the company has signed a deal with Samsung for complete customisation of Tesla-designed chips. Musk confirmed the deal with a post on social media platform X (formerly known as Twitter). “Samsung agreed to allow Tesla to assist in maximising manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house,” wrote Musk.The deal said to be an important win for Samsung’s contract chip-making business, which has been struggling to compete with rivals like TSMC. As per the analyst, the partnership is said to help Samsung in reducing the loses in its foundry division which reportedly exceeded $3.6 million in the first half of 2025.Samsung also highlighted its expanding collaboration with Tesla, particularly in supplying advanced camera modules and display panels for upcoming electric vehicle models.
Samsung’s positive outlook
The positive outlook comes despite Samsung posting its weakest operating profit in six quarters for the April-June period, recording 4.7 trillion won ($3.37 billion). The company attributed the dip to chip shipment delays and U.S. export curbs on advanced semiconductor sales to China. However, Samsung forecasts a gradual recovery for its chip business in the second half of the year, driven largely by surging demand for artificial intelligence (AI) technologies.
