Samsung to produce Tesla chips in $16.5 billion multiyear deal

Samsung Electronics Co. will produce semiconductors for Tesla Inc. in a new $16.5 billion pact that gives a boost to its underperforming foundry division.
South Korea’s largest company announced on Monday that it has secured a 22.8 trillion won chipmaking agreement with a global corporation that will run through the end of 2033.

Tesla, which already does business with Samsung’s contract chipmaking division, is that customer, according to a person familiar with the matter who asked not to be named, as the information isn’t public.

Samsung’s…