Oct. 9 at 6:04 PM
$PLAB Two recent contracts of note. First is
$TSLA multi-year, multi-billion dollar contract with Samsung to produce chips. These chips will be produced at Samsung's TX based manufacturing plant in TX. Second, OpenAI's multi-year, multi-billion dollar contract with Samsung to produce chips. PLAB's largest customer is Samsung and PLAB is also the only photomask supplier to have manufacturing plants in the USA, one of which is in close proximity to Samsung's TX plant. Why wouldn't Samsung buy PLAB? Using
$3B as a number, that would fetch PLAB shareholders
$50.00 p/s. Samsung would assume PLAB's cash (
$600M) thus reducing outlay to
$2.4B. PLAB nets
$200M per year, soon to be more with the new contracts meaning Samsung would retrieve all funds within 10 years not counting the synergistic savings Samsung would experience by producing and selling photomasks in-house. Samsung would also benefit from PLAB's global footprint by avoiding tariff expense based on contract location.
