Samsung Electronics said on Thursday a trade deal that will see Washington charge 15% tariffs on imports from South Korea reduces uncertainty and it forecast major chip orders after signing a $16.5 billion deal with Tesla.

Samsung’s $16.5bn chipmaking deal with Tesla is set to be a crucial test of the Korean tech group’s ability to meet the high demands of Elon Musk while making the corporate changes needed to revive its struggling semiconductor business.

South Korea's Samsung Electronics signed a $16.5 billion, eight-year contract to supply semiconductors to a global company, which Elon Musk said was Tesla.,