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Samsung to produce Apple's next-generation chips at U.S. foundry

Published: 07 Aug. 2025, 09:05

Samsung Electronics' foundry facility in Austin, Texas [SAMSUNG ELECTRONICS]

Samsung Electronics will produce Apple’s next-generation chips at its U.S. foundry in Texas, the two companies confirmed Thursday.

Apple said it is “working with Samsung at its fab in Austin, Texas, to launch an innovative new technology for making chips, which has never been used before anywhere in the world,” in a press release issued Thursday.

“By bringing this technology to the U.S. first, this facility will supply chips that optimize power and performance of Apple products, including iPhone devices shipped all over the world,” the company added.

Industry analysts say the chips in question are likely image sensors for next-generation iPhones.

“Mass production of image sensors for the iPhone 18 next year, along with new clients such as Tesla, is expected to reduce losses in Samsung’s semiconductor division,” wrote Kiwoom Securities analyst Park Yu-ak in a report last month.

Samsung’s image sensor brand Isocell is designed by its System LSI division. The company’s foundry is reportedly set to manufacture the new chips using cutting-edge technology at the Austin facility. Samsung currently supplies Isocell sensors to its own Galaxy smartphones as well as to Chinese brands such as Xiaomi and Vivo and Motorola.

Analysts suggest Apple selected Samsung to localize production and diversify its supply chain. Until now, Apple has relied entirely on Japan’s Sony for the image sensors used in iPhones. As of last year, Sony held over 50 percent of the global image sensor market, while Samsung ranked second with a 15.4 percent share.

“We cannot confirm details about clients or specific projects,” a Samsung spokesperson said regarding the deal.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM JI-HYE [[email protected]]