(KPL/Yonhap) Samsung Electronics Co. said Monday it has secured a 22.8 trillion-won (US$16.4 billion) order to supply artificial intelligence (AI) semiconductors to an unidentified client, while U.S. tech giant Tesla later confirmed the deal, also suggesting the deal may grow much bigger.

In a regulatory filing, the South Korean tech giant said it signed a foundry contract set to be completed by Dec. 31, 2033.

The contract represents 7.6 percent of Samsung Electronics' total revenue of 300.9 trillion won last year and marks the largest chip order ever won by Samsung Electronics.

The company did not disclose the identity of the client or the specifics of the deal, citing "management confidentiality."

Later in the day, however, Tesla founder Elon Musk said on his social media account that Samsung Electronics will manufacture Tesla's next-generation AI6 chip at its new semiconductor plant in Texas, referring to the multibillion-dollar contract announced earlier by the South Korean chipmaker.

In a reply to a comment, he also suggested the deal could be "much more than" the amount Samsung had disclosed.

"Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency," Musk said in a post on X on Monday. "Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip. The strategic importance of this is hard to overstate."

He was referring to Samsung's semiconductor fabrication plant under construction in Taylor, Texas, part of its US$37 billion investment plan, with operations slated to begin in 2026. The project has reportedly been delayed due to a lack of customers.

Musk added that Samsung Electronics is currently producing AI4 chips, while rival Taiwan Semiconductor Manufacturing Co. (TSMC) will handle the production of Tesla's AI5 chips, which have just completed design, at its facilities in Taiwan first and then in Arizona.

Tesla has been accelerating the development of its full self-driving (FSD) assistance system using the AI4, AI5 and AI6 chips.

"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," Musk added, referring to Samsung's Texas facility.

Samsung's 22.8 trillion-won deal is expected to give a much-needed boost to its foundry division, which has long struggled to catch up with global industry leader TSMC.

According to recent data by market research firm TrendForce, Samsung Electronics accounted for 7.7 percent in the global foundry market in the first quarter, far behind the industry leader TSMC with 67.7 percent.

In its earnings guideline released earlier this month, Samsung Electronics estimated an operating profit of 4.59 trillion won and sales of 74 trillion won for the second quarter.

In particular, operating profit failed to meet market expectations, mainly due to the sluggish performance of the foundry and the System Large Scale Integration (LSI) divisions.

Following the announcement, shares of Samsung Electronics rose 6.83 percent to close at 70,400 won, sharply outperforming the broader Korea Composite Stock Price Index's 0.42 percent gain.

KPL