Samsung Electronics will supply chips to Apple from its Austin, Texas, plant, following an announcement on August 7, 2025, that Samsung will supply chips to Apple.

Samsung, based in South Korea, has also recently secured a chip supply deal with Tesla, marking a series of major US contracts for its foundry business.

Apple said the chips from Samsung’s Austin facility will be used in products including iPhones, but did not disclose further details about the technology or volume.

Industry analysts believe the partnership may involve complementary metal-oxide-semiconductor (CMOS) image sensors, which are key components in smartphone cameras, though neither company confirmed this.

Samsung has reportedly converted part of its Austin foundry line for CMOS sensor production, a segment largely dominated by Sony, which currently supplies Apple.

The deals come as Samsung seeks to boost utilization at its US semiconductor plants and recover from recent financial losses in its foundry unit.

Chips produced in the US for Apple and Tesla are expected to be exempt from new tariffs announced by former President Donald Trump, though uncertainties remain for Korean-made memory chips.

🔗 Source: The Korea Times

🧠 Food for thought

1️⃣ Samsung’s foundry transformation reflects decades-long strategic pivot from memory dominance

Samsung’s recent Apple deal represents the culmination of a strategic transformation that began decades ago.

The company became the world’s top DRAM manufacturer by 1992, just 18 years after entering semiconductors in 19741. However, Samsung’s Austin fab originally built for memory chips has been repurposed for logic production, reflecting its strategic shift to compete in the foundry business2.

This transition from memory-focused to diversified semiconductor manufacturing positions Samsung uniquely in the market. Unlike pure-play foundries, Samsung can leverage its vertical integration across memory and logic production3.

The company’s foundry business now operates independently, allowing focused growth in custom chip production for major clients2. This structural change enabled Samsung to secure major contracts like the recent Tesla deal worth $16.5 billion and now the Apple partnership.

2️⃣ Breaking Sony’s CMOS sensor monopoly could reshape mobile imaging supply chains

Samsung’s Apple deal targets a market where Sony has held overwhelming dominance for years.

Recent Samsung developments