Samsung Set to Make Image Sensors for iPhone 18

In a surprise alliance between technology competitors, Samsung Electronics will produce chips for Apple's iPhones at its Austin, Texas, manufacturing facility. It is a strategic partnership that can reignite Samsung's flailing logic chip unit while enhancing Apple's US production presence.

The chips, constructed with a technology never before utilized, are to be employed for heightened power and performance in Apple's premium iPhones. "By launching this technology in the US first, this plant will provide chips that maximize the power and performance of Apple devices, including iPhone devices that ship around the globe," Apple said.

This agreement forms part of Apple's American Manufacturing Program, where it has committed USD 600 billion over four years to enhance supply chain resilience and increase local production capacity. "Apple is also collaborating with Samsung in its fab in Austin, Texas, to introduce a new innovative technology for producing chips," the company further stated.

Key Highlights:

• Samsung to Make Image Sensors for iPhone 18 in Texas
• Apple-Samsung Chip Deal Boosts U.S. Tech Manufacturing
• Apple Taps Samsung for Next-Gen iPhone Chips Amid Trade Shifts

Even Samsung chose not to comment, but analysts forecast that the company will also start mass-producing image sensors for Apple's iPhone 18 next year. "Profit visibility for Samsung Electronics is getting better looking into next year," Samsung Securities analyst Kim Kyoung-been said.

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The tie-up occurs as trade tensions are escalating. Apple is diversifying from its China-reliant supply chain, and Samsung wants to preempt US tariffs looming over its products by ramping up local production. President Trump recently declared a 100 percent, with exemptions for semiconductors produced in the US.

The tie-up may also assist Samsung in bridging the market gap between it and Sony in image sensors using Apple's enormous shipment volumes.