South Korea’s Samsung Electronics reported today to regulators that it has negotiated a 5G network equipment supply contract with U.S. telco Verizon for $6.6 billion (about NT$193.5 billion), meaning it will expand its footprint in the strategically important U.S. market.
Samsung Electronics, which dominates South Korea’s technology industry, said that the size of the contract, equivalent to 3.4 percent of the company’s total global sales last year, also represents a “long-term strategic contract.
Washington had previously banned U.S. telecoms from using network equipment made by Samsung’s rival, China Huawei, citing national security risks.
Samsung Electronics is the flagship subsidiary of the Samsung Group. Thanks to strong demand for memory chips, Samsung’s second-quarter profit grew 7.3%, unaffected by the COVID-19 (2019 coronavirus disease) outbreak.
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