Apple partners with Samsung to manufacture iPhone chips in Texas

Apple has confirmed a strategic partnership with Samsung Electronics to manufacture chips for its iPhone devices at Samsung’s fabrication facility in Austin, Texas. The collaboration is a key component of Apple’s broader commitment to increase U.S. investment, which now totals $600 billion over the next four years. The chips produced at the Texas plant will be designed to optimize both power efficiency and performance in Apple products, including the iPhone 18 series, with a particular focus on image sensors that are critical for advanced camera systems [3].

This partnership marks a shift in Apple’s supply chain strategy, as the company is reportedly reducing its dependence on Sony for image sensor components. According to Ryu Young-ho, a senior analyst at NH Investment & Securities, Samsung is expected to take over a significant portion of Apple’s image sensor production from Sony, who currently dominates the high-end market with manufacturing facilities located in Japan [3]. By sourcing from Samsung’s U.S.-based facility, Apple is aligning with its broader initiative to localize more of its production within the United States.

Samsung’s Taylor chip plant in Texas is also playing a central role in supporting other U.S. technology firms. For example, Tesla recently signed a $16.5 billion agreement with Samsung to source chips for its AI6 project, leveraging the same Texas-based infrastructure [3]. Analyst Pak Yuak of Kiwoom Securities has noted that these new orders are expected to help Samsung’s chip manufacturing division become more profitable by 2026 [3].

Apple emphasized that the collaboration with Samsung in Texas involves the development of an innovative new chip manufacturing technology that has not been used before. This technology is intended to enhance the performance and efficiency of Apple’s product lineup and is being introduced as part of Apple’s $100 billion investment in U.S. manufacturing over the next four years [1].

Samsung did not immediately comment on the partnership, but the move is widely seen as a significant win for the South Korean tech giant. The Austin and Taylor plants are now central to the production of advanced chips that support not only Apple but also other major U.S. technology firms. The collaboration underscores the growing importance of domestic manufacturing in the global semiconductor industry and highlights how strategic alliances are helping to reshape supply chain dynamics [4].

Source: [1] Apple increases U.S. commitment to $600 billion (https://www.apple.com/newsroom/2025/08/apple-increases-us-commitment-to-600-billion-usd-announces-ambitious-program/)

[2] Samsung to produce Apple's next-gen chips at US foundry (https://www.kedglobal.com/korean-chipmakers/newsView/ked202508070005)

[3] Apple says Samsung will supply chips from Texas factory (https://finance.yahoo.com/news/apple-says-partnering-samsung-chip-222246786.html)

[4] Samsung scores massive win, will make advanced chips for Apple iPhones (https://www.sammobile.com/news/samsung-scores-massive-win-will-make-advanced-chips-for-apple-iphones/)