Apple has announced a new partnership with Samsung to develop “innovative new technology for making chips” at Samsung’s fabrication plant in Austin, Texas. According to The Financial Times, this collaboration is focused on producing advanced image sensors for future iPhones, potentially ending Sony’s long-standing role as the exclusive supplier of these components.
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The chips are reportedly three-layer stacked image sensors, which are key to enabling faster camera speeds, high-frame-rate 8K video, and reduced “jello” distortion from rolling shutter effects. This technology is a highly competitive area, with both Samsung and Sony actively working on similar innovations.
The deal signifies a reconciliation between Apple and Samsung, which have had a strained business relationship since Apple shifted its primary chip manufacturing to TSMC in 2011. This new partnership, along with Samsung’s recent $16.5 billion deal with Tesla, marks a significant resurgence for Samsung’s chip foundry business.
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The new partnership may also be a strategic response to President Trump’s recently announced tariffs on foreign-made chips, which could be as high as 100%. Companies with manufacturing facilities in the U.S., such as Samsung, TSMC, and SK Hynix, are expected to be exempt from these import taxes. However, Sony, whose image sensors are manufactured by TSMC in Taiwan, does not have its own chip plants in the U.S., making its products vulnerable to the new tariffs.
Sony currently holds a dominant position in the $21.8 billion image sensor market with a 45% share, compared to Samsung’s 19%. Sony’s leadership is largely due to its history of being first to market with technological advances. In a statement, Sony expressed confidence in its technology, saying it would focus on “further technological advancement through larger sensor size and density.”
