The global memory chip powerhouse Samsung Electronics Co. will produce chips for Apple Inc. at its semiconductor manufacturing facilities in the US, a move expected to blunt the impact of Washington’s planned tariffs on chip imports.
On Wednesday, the US tech giant announced that the South Korean memory chip leader is among several suppliers participating in its new American Manufacturing Program, or AMP, which aims to expand the tech company’s domestic supply chain and production footprint.
“Apple is also 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,” Apple said in a statement.
The next-generation chip manufacturing process will debut in the US and then will be used to produce “chips that optimize power and performance of Apple products, including iPhone devices shipped all over the world,” Apple added.
Other chipmakers participating in the AMP include TSMC, Broadcom, GlobalFoundries and Applied Materials.
Samsung shares closed up 2.5% at 70,500 won ($51.11) on Thursday.
Through its new American Manufacturing Program, Apple is working with American suppliers like Corning to accelerate US manufacturing (Courtesy of Apple) IMAGE SENSORS
It remains unclear which specific chips Samsung will supply to Apple.
Industry analysts project they could be image sensors, such as Samsung’s ISOCELL, which is widely used across mobile and automotive applications.
“Samsung Electronics’ foundry unit is expected to narrow losses from new chip contract-making deals, including Samsung’s Exynos 2500 chips for the Galaxy Z Flip7 phone, CIP chips for the iPhone 18 series and silicon for Tesla,” said Park Yu-ak, an analyst at Kiwoom Securities Co.
CIS chips refer to CMOS image sensors in the iPhone series. Apple receives entire image sensor chips from Sony Corp. for different iPhone models and camera features.
Samsung currently supplies its ISOCELL chips for its Galaxy smartphone series, as well as Chinese handset makers such as Xiaomi, Vivo and Motorola Mobility.
In 2024, Sony controlled more than half of the global image sensor market, followed by Samsung with a 15.4% share.
SMALLER TARIFFS ON US-MADE CHIPS
Samsung’s US-based chip production for Apple and Tesla may shield it from hefty US tariffs on chip imports.
US President Donald Trump (center) poses for a photo with South Korean government officials after agreeing on a new tariff deal on July 31, 2025 (Courtesy of The White House X post) On Wednesday, US President Donald Trump said he would impose roughly 100% tariffs on all chips coming into the country, but tech companies that manufacture domestically could be exempt.
He introduced the chip tariff at the event, where Apple vowed an additional $100 billion investment in the US, including the AMP.
After the new tariff deal agreement, US Commerce Secretary, Howard Lutnick, said in a social media post that South Korea would “not be treated any worse than any other country on semiconductors and pharmaceuticals.”
The US has pledged zero levies on EU-made semiconductors and the lowest rates on Japanese chips.
However, Trump’s new 100% tariff proposal raises questions over whether Korean chipmakers – particularly Samsung and its crosstown rival SK Hynix Inc., the world’s largest high-bandwidth memory (HBM) chip maker – could face higher tariffs.
The US is South Korea’s fifth-largest destination for chip exports, after China, Hong Kong, Taiwan and Vietnam.
However, of Korea’s total exports bound for the US, semiconductors account for the second-largest export item, after cars. Korea exported $10.6 billion worth of chips to the US in 2024.
Industry observers pin hopes on Samsung’s latest deals with Apple and Tesla, saying they could help the Korean chip giant avoid US tariff headwinds.
The US government will announce final chip levies next week after reviewing the results of a Section 232 investigation assessing the impact of semiconductor imports on national security and the domestic supply chain.
Samsung will thoroughly assess the Section 232 outcome and come up with measures to minimize any adverse impact, Samsung Chief Financial Officer Park Soon-cheol said last week during a second-quarter earnings conference call.
Write to Sookyung Seo at skseo@hankyung.com Jennifer Nicholson-Breen edited this article.
