Samsung Electronics shares extend gains after Tesla deal, but challenges remain


FILE PHOTO: A view of a Samsung Electronics Vietnam factory in Bac Ninh province, Vietnam, April 3, 2025. Vietnam, with a tariff rate of 46 per cent imposed by U.S. President Donald Trump, is one of six countries in the nine Southeast Asian region slapped with much bigger-than-expected by the U.S. REUTERS/Stringer/File Photo

Seoul (Reuters) -Shares in Samsung Electronics eked out small gains on Tuesday, following a sharp rally the previous day after the South Korean technology company clinched a $16.5 billion deal to supply artificial intelligence chips to Tesla.

Analysts said the agreement could bolster the company's unprofitable contract manufacturing business, but Samsung faces challenges in securing additional large customers both for logic chips and memory chips where it struggles against TSMC and SK Hynix.

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