Synopsis
Apple announced it will source chips from Samsung's Texas plant for devices including iPhones, as part of a $100 billion US investment boost. This follows a $16.5 billion Samsung chip deal with Tesla. Analysts expect Samsung's chip division to cut losses with Apple and Tesla orders by 2026.
Apple said on Wednesday that Samsung Electronics will supply chips from its production plant in Texas for Apple products including iPhones.Tired of too many ads? Remove Ads
"This facility will supply chips that optimize power and performance of Apple products, including iPhone devices," Apple said in a statement. A Samsung spokesperson declined comment. The statement was made as part of Apple's announcement it would spend an additional $100 billion in US investments, bringing its total investment commitment to the country to $600 billion over the next four years.
Tesla recently signed a $16.5 billion deal to source chips from Samsung, with Tesla CEO Elon Musk saying in late July that Samsung's new chip factory in Texas would make Tesla's next-generation AI6 chip. Samsung's chip contract manufacturing business is expected to reduce losses by securing new orders in 2026 to make image sensor chips for iPhone 18s and chips for Tesla, Pak Yuak, analyst at Kiwoom Securities, wrote in a note late last month.
