Apple says Samsung will manufacture its iPhone chips in its Texas plant

Source Cryptopolitan

Tech giant Apple confirms it will source chips for its iPhones from Samsung Electronics’ production plant in Austin, Texas. The Cupertino company announced, “This facility will supply chips that optimize the power and performance of Apple products, including iPhones,” referring to Samsung’s Texas manufacturing hub.

The move is part of Apple’s broader American Manufacturing Program (AMP), through which the company is teaming up with the South Korean memory chip giant and other key suppliers to strengthen its local supply chain and boost domestic production.

Analysts expect Samsung to supply Apple with image sensors

Earlier, Trump had warned Apple it could face a 25% tariff on products developed abroad, possibly reversing earlier policies that shielded iPhones and other electronics from China-related import taxes. 

After which, the tech giant pledged another $100 billion in US investments to increase local production—bringing its total planned investment to $600 billion over the next four years. The company has even partnered with major chip suppliers like Samsung, TSMC, Broadcom, GlobalFoundries, and Applied Materials.

Daniel Ives, an analyst with Wedbush Securities, has commended the iPhone maker’s decision, saying it helps it remain in Trump’s good graces. However, other analysts pointed out that the investment numbers are not that different from the firm’s routine capital outlays and repeat pledges made during both the Biden years and Trump’s previous term. Nonetheless, Apple says it will kick off U.S. production of next-gen chips used in Apple products, including iPhones distributed globally.

On Wednesday, Apple also revealed that its new supplier, Samsung, will manufacture chips at its Texas facility. The deal could further bolster Samsung’s semiconductor operations, just weeks after landing a $16.5 billion contract with Tesla. Still, Apple hasn’t disclosed which specific chips Samsung will be supplying. Though analysts believe the South Korean chip maker could provide image sensors, like the ISOCELL,  for Apple.

Samsung’s foundry arm still supplies chips for its Galaxy devices. It produces ISOCELL chips for its Galaxy smartphone series,  Xiaomi, Vivo, and Motorola Mobility.

Analyst Park Yu-ak of Kiwoom Securities even noted that new chipmaking contracts, such as those for the Galaxy Z Flip7’s Exynos 2500, CIP chips for the iPhone 18, and Tesla’s silicon, could help the company narrow its losses.

Apple has traditionally relied entirely on Sony Corp. for image sensors in its iPhone models and camera features. In 2024, Sony held more than 50% of the global image sensor market, with Samsung trailing at 15.4%. Though Ryu Young-ho, a senior analyst at NH Investment & Securities, notes that Samsung will be handling a portion of the image sensor supply that Apple once sourced exclusively from Sony.

He noted that the move would lessen Apple’s dependence on a single supplier and align with its broader strategy to increase U.S.-based sourcing.

Trump proposed a 100% tariff on semiconductors, which could hurt South Korean chip companies

On Wednesday, US President Donald Trump announced a 100% tariff would be applied to all imported chips, though companies with U.S.-based manufacturing could be spared.

The suggested tariff has raised uncertainty over the potential impact on South Korean chipmakers, especially Samsung and SK Hynix Inc., the latter being the world’s leading producer of high-bandwidth memory (HBM) chips. Although the U.S. is South Korea’s fifth-largest destination for semiconductor exports, semiconductors are the second-most valuable Korean export to the U.S., following automobiles. In 2024, semiconductor exports from Korea to the U.S. totaled $10.6 billion.

However, Commerce Secretary Howard Lutnick has clarified that South Korea would be treated no differently than other nations regarding semiconductors and pharmaceuticals. Though the U.S. has already promised zero tariffs on EU chips and minimal rates on Japanese semiconductors. 

KEY Difference Wire helps crypto brands break through and dominate headlines fast

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: XAU/USD recovers some lost ground above $2,050, US ADP report eyedGold price (XAU/USD) bounces off the multi-day lows near $2030 per ounce and hovers around $2,042 during the early Asian session on Thursday.
Author  FXStreet
Jan 04, 2024
Gold price (XAU/USD) bounces off the multi-day lows near $2030 per ounce and hovers around $2,042 during the early Asian session on Thursday.
placeholder
Gold holds steady below $4,150 amid elevated US yields Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
Author  FXStreet
Oct 06, Tue
Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
placeholder
WTI rises to near $89.50 as Middle East supply threats offset Persian Gulf recoveryWest Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
Author  FXStreet
Oct 07, Wed
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
placeholder
Gold falls to a two-month low as real yields bite — can $4,000 hold?Gold hit a two-month low on 7 October, with spot touching roughly $4,090 and COMEX December futures closing at $4,140.70, even as the New York Fed's one-year inflation expectation rose to 3.9% — its highest since May 2023. The paradox resolves through real yields: the 30-year Treasury yield reached 5.732% intraday, its highest since 2002. Here are the levels, the institutional split, and the scenarios into tonight's jobless claims and 30-year auction.
Author  Irene Q.
23 hours ago
Gold hit a two-month low on 7 October, with spot touching roughly $4,090 and COMEX December futures closing at $4,140.70, even as the New York Fed's one-year inflation expectation rose to 3.9% — its highest since May 2023. The paradox resolves through real yields: the 30-year Treasury yield reached 5.732% intraday, its highest since 2002. Here are the levels, the institutional split, and the scenarios into tonight's jobless claims and 30-year auction.
placeholder
【Daily Brief】Gold rebounds 1% off a two-month low, Nasdaq drops 1.25% and yields ease — the storm premium keeps WTI near $91Gold trades at $4,174 after rebounding from Wednesday's $4,090 two-month low, the Nasdaq fell 1.25% while the Dow edged higher, and the 10-year Treasury eased to 5.23% from the week's highs. Hurricane Isaias keeps about 25% of Gulf output shut in with WTI near $91, and bitcoin holds below $82,000. The next scheduled tests are the EIA report on 15 October and the FOMC on 27-28 October.
Author  Irene Q.
55 mins ago
Gold trades at $4,174 after rebounding from Wednesday's $4,090 two-month low, the Nasdaq fell 1.25% while the Dow edged higher, and the 10-year Treasury eased to 5.23% from the week's highs. Hurricane Isaias keeps about 25% of Gulf output shut in with WTI near $91, and bitcoin holds below $82,000. The next scheduled tests are the EIA report on 15 October and the FOMC on 27-28 October.
goTop
quote