Apple has announced that Samsung Electronics will supply chips for its iPhones and other devices from its production plant in Austin, Texas.
“This facility will supply chips that optimize power and performance of Apple products, including iPhone devices,” Apple said on Wednesday. Samsung declined to comment.
The announcement came alongside Apple’s pledge to invest another $100 billion in the U.S. over the next four years, bringing its total to $600 billion.
Analysts say Samsung is now taking over part of Apple’s image sensor orders, previously fulfilled by Japan’s Sony. “What’s significant is that Samsung is taking over some of the image sensor volumes that Apple previously sourced from Sony,” said Ryu Young-ho, a senior analyst at NH Investment & Securities.
Sony remains the leader in high-end image sensors, but Apple appears to be diversifying to reduce dependence on one supplier—while also moving more production stateside.
The Austin facility could also boost Samsung’s struggling chip foundry business. Recently, Tesla signed a $16.5 billion deal with Samsung to produce its next-gen AI6 chips at the same plant. Tesla CEO Elon Musk confirmed the Texas fab would be central to the new chip’s rollout.
Analysts expect Samsung’s contract chip business to recover in 2026, with new orders from both Apple and Tesla. “This could be a turning point for Samsung’s foundry operations,” said Pak Yuak of Kiwoom Securities.
