Apple to Source Chips from Samsung’s Texas Factory for iPhones

Apple announced on Wednesday that Samsung Electronics will supply chips from its Austin, Texas production facility for Apple products, including iPhones. Apple stated the facility will produce chips optimized for power efficiency and performance specifically tailored to Apple devices.

The announcement accompanies Apple’s broader pledge to invest an additional $100 billion in the U.S., bringing its total domestic investment to $600 billion over four years.

Industry analysts highlight that Samsung will take over some image sensor volumes that Apple previously sourced from Sony, which manufactures its sensors exclusively in Japan. This shift diversifies Apple’s supply chain and supports the company’s strategy to localize production within the United States.

“While Sony still dominates the high-end image sensor market, Apple’s move reduces its reliance on a single vendor and bolsters U.S.-based sourcing,” said NH Investment & Securities analyst Ryu Young-ho.

Samsung recently secured a $16.5 billion contract to supply chips for Tesla, whose CEO Elon Musk confirmed that Samsung’s Texas plant will produce Tesla’s next-generation AI6 chip.

Analysts expect Samsung’s chip manufacturing business to reduce losses by winning new orders for iPhone 18 image sensors and Tesla chips in 2026, according to Kiwoom Securities’ Pak Yuak.