Apple’s announcement of a $100 billion American Manufacturing Program and a new partnership with Samsung Electronics in Austin, Texas has raised eyebrows across the semiconductor world. For years, Apple’s closest silicon partner has been TSMC, while Intel has recently pushed hard to re-enter the foundry business. So why did Apple select Samsung for this initiative?

The answer lies in technology, timing, strategy — and a pragmatic reconciliation of old rivalries.

From Rivals to Partners: A Complicated History

Apple and Samsung’s relationship hasn’t always been smooth.

1. In 2011, Apple sued Samsung for allegedly copying iPhone designs.
2. In 2012, a U.S. jury awarded Apple $1.05 billion in damages. It was one of the biggest patent cases in tech history.
3. For years, Apple and Samsung fought legal battles across multiple countries.

Yet behind the scenes, they were still deeply intertwined: Samsung supplied Apple with processors, DRAM, NAND, and OLED displays.

By 2018, after seven years of litigation, the companies settled all lawsuits. The settlement was confidential, but it effectively ended the courtroom battles. What emerged was a pragmatic coexistence: rivals in smartphones, but indispensable partners in semiconductors.

This history shows why Apple’s new collaboration with Samsung isn’t a sudden pivot — it’s the continuation of a coopetition model that both companies have learned to embrace.

The “New Technology”: Advanced CMOS Image Sensors

While Apple didn’t disclose details, industry reports point to three-layer stacked CMOS Image Sensors (CIS) produced with advanced hybrid bonding.

1. These 3-stack sensors separate the photodiode, logic, and analog-to-digital converter layers.
2. Benefits include better image quality, lower power consumption, and compact designs.
3. They’re expected to power the iPhone 18 series, a global flagship for Apple.

This is a different class of semiconductor from the logic processors TSMC and Intel specialize in — and that’s where Samsung comes in.

Why Samsung Fits the Bill

1. U.S.-Based Sensor Production
2. Sony dominates CIS globally but has no U.S. manufacturing presence.
3. Samsung’s Austin fab gives Apple a domestic partner for CIS, perfectly aligned with its American Manufacturing Program.
4. Tariff & Geopolitical Hedge
5. Starting in 2026, tariffs on overseas chips could hit Apple hard.
6. Producing sensors in Texas helps Apple avoid tariffs and secure a “Made in America” label.
7. Diversification Beyond TSMC
8. Apple relies heavily on TSMC for A-series and M-series processors.
9. Overreliance on one supplier — especially in geopolitically sensitive Taiwan — is risky.
10. Partnering with Samsung spreads risk and strengthens resilience.
11. Faster Ramp Through Existing Ties
12. Samsung’s Austin fab once produced Apple’s A5 processors.
13. The infrastructure and working relationship already exist, allowing for a faster production ramp.

Why Not TSMC?

1. TSMC’s U.S. fabs (Arizona) are designed for advanced logic nodes (N4, N3), not image sensors.
2. Adding CIS capability would require new process lines and equipment, delaying Apple’s roadmap.
3. TSMC remains central for Apple’s processors but isn’t the right fit for this sensor initiative.

Why Not Intel?

1. Intel Foundry Services is still stabilizing and has limited customer track record.
2. Intel’s expertise lies in logic and packaging, not image sensors.
3. Without proven CIS capability, Intel couldn’t meet Apple’s requirements.

The Bigger U.S. Semiconductor Picture

This partnership expands the scope of U.S. semiconductor production:

1. Beyond processors: Apple is localizing not just CPUs but also image sensors.
2. Strengthened supply chain: Domestic CIS production reduces reliance on Asia and hedges against tariffs.
3. Broader ecosystem growth: Alongside TSMC’s Arizona fabs, Intel’s Ohio projects, GlobalFoundries in New York, and Texas Instruments, Samsung’s Austin fab makes the U.S. semiconductor landscape more complete.

Conclusion

Apple’s decision to work with Samsung — despite their fraught legal history — underscores the power of pragmatism in global tech.

1. The lawsuit era (2011–2018) showed how fiercely Apple and Samsung can compete.
2. The supply chain reality ensured their relationship never truly broke, even during the court battles.
3. Today’s partnership highlights a shared interest: building resilient, U.S.-based semiconductor capacity.

Apple didn’t abandon TSMC or Intel — it simply chose the partner that could deliver advanced image sensors in the U.S. right now.

In the end, Apple and Samsung exemplify modern “coopetition”: rivals in the smartphone market, partners in the semiconductor supply chain. And in an era where supply chain resilience is as valuable as raw performance, that balance may be Apple’s smartest move yet.

Sources

1. Reuters – Apple confirms Samsung will supply chips from Texas fab
2. Wccftech – Samsung to build advanced three-layer CIS for Apple in Austin
3. The Verge – Apple’s tariff strategy and CIS localization in U.S.
4. Patently Apple – Three-layer stacked CMOS sensors for iPhone 18
5. Apple Newsroom – $100B American Manufacturing Program announcement
6. Court filings & reports on Apple vs. Samsung patent lawsuit (2011–2018)