AsianFin -- Samsung Electronics Co. has secured a multiyear, 22.8 trillion won ($16.5 billion) agreement to produce AI chips for Tesla Inc., delivering a major boost to its lagging semiconductor foundry business.

Announced Monday, the deal will run through 2033 and involve chip production at Samsung’s upcoming plant in Taylor, Texas. Tesla CEO Elon Musk confirmed the partnership on X, stating that the facility will manufacture the company’s next-generation AI6 chips, in line with an earlier Bloomberg News report.

The news sent Samsung’s shares surging 6.8% in Seoul to their highest level since September, while key suppliers such as Soulbrain Co. rallied as much as 16%. Samsung declined to provide additional details, citing contractual confidentiality.