Apple said Samsung Electronics will supply chips from its Texas factory for Apple products, including iPhones.

This came as Apple committed an additional US$100 billion on US investments, bringing its total planned investment to US$600 billion over the next four years.

Samsung declined to comment on the arrangement.

Separately, Tesla recently agreed to a US$16.5 billion deal to source chips from Samsung.

CEO Elon Musk said Samsung’s new facility will produce Tesla’s next-generation AI6 chip.

An analyst from Kiwoom Securities said Samsung’s contract chipmaking business could see reduced losses in 2026.

The company is securing new orders to make image sensor chips for future iPhones and chips for Tesla.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Apple and Samsung’s “coopetition” demonstrates how tech rivals can maintain profitable partnerships

The chip supply announcement highlights the complex relationship between Apple and Samsung, where fierce competition coexists with essential business partnerships.

Despite years of patent litigation and smartphone market rivalry, Apple has historically purchased around $8 billion worth of components annually from Samsung1. This continued collaboration persists even as Samsung’s Galaxy smartphones directly compete with iPhones in global markets.

The partnership extends beyond basic component supply. Samsung provides OLED displays for premium iPhones and now chips from its Texas facility, while Apple has integrated its services into Samsung’s smart TVs2.

This model allows both companies to leverage each other’s technological strengths while competing fiercely for market share, demonstrating how strategic partnerships can transcend competitive tensions when mutual benefits are substantial.

2️⃣ US manufacturing commitments provide strategic tariff protection for tech companies

Apple’s decision to source chips from Samsung’s Texas facility aligns with a broader strategy to secure exemptions from proposed semiconductor tariffs through domestic investment commitments.