Samsung Electronics Co.’s surprise $16.5 billion chipmaking deal with Tesla Inc. has breathed new life into a foundry business all but written off by many investors.

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.