[K-Tech] Samsung to produce Apple's next-generation chips at US foundry facility

Samsung Electronics Seocho headquarters Yonhap — Samsung Electronics Seocho headquarters/ Yonhap

SEOUL, August 07 (AJP) - Samsung Electronics will manufacture next-generation chips for its competitor Apple's products, including iPhones, at its foundry facility in the United States, the South Korean chipmaker said Thursday. This marks Samsung's first return to chip production partnership with Apple after the American tech giant shifted most of its processor manufacturing to Taiwan Semiconductor Manufacturing Co (TSMC) in 2013.

Apple also released a press release on August 7 and announced that it is collaborating with its South Korean counterpart to develop innovative new chip manufacturing technology at Samsung's semiconductor facility in Austin, Texas. The technology represents the first of its kind to be used globally, according to Apple.

"By introducing this technology to the United States first, this facility will supply chips that optimize power efficiency and performance for Apple products, including iPhones shipped worldwide," Apple said.

Industry analysts believe the chips are likely image sensors for next-generation iPhones and other Apple devices. Park Yu-ak, a researcher at Kiwoom Securities, wrote in a report last month that Samsung's semiconductor division is expected to reduce operating losses through mass production of iPhone 18 image sensors next year and by securing new clients, including Tesla.

Samsung's ISOCELL image sensor brand is designed by its System LSI division and will be manufactured by the foundry at the Austin facility, which began operations in 1998. The ISOCELL sensors are constructed by bonding two wafers together, with the new technology-enabled chips to be produced at the Austin plant.

Samsung currently supplies ISOCELL sensors to its own Galaxy smartphone models and Chinese manufacturers including Xiaomi, Vivo and Motorola. Apple has traditionally sourced iPhone image sensors exclusively from Japan's Sony, which holds more than half the global image sensor market share, while Samsung ranks second with 15.4 percent as of last year.

Candice Kim candicekim1121@ajupress.com