Samsung's new $1.9 billion investment could be for making cameras for Apple

Samsung is reportedly investing an additional $1.9 billion in its semiconductor chip plant in Austin, Texas. This investment is believed to be a precursor to starting the mass production of innovative camera sensors for Apple. Furthermore, it may potentially secure some subsidies from the US government.

A report from Money Today Korea claims that Samsung Electronics is planning to invest around $1.9 billion in its foundry fab in Austin, Texas, USA. It will be used to remodel the facility by adding cutting-edge semiconductor chipmaking equipment. This move will help the South Korean firm in making advanced semiconductor chips, and they could be the same CMOS image sensor (CIS) chips that Apple mentioned in its deal with Samsung.

While Apple and Samsung didn't reveal the exact nature of the camera sensors for which they are collaborating, multiple reports claimed that they are collaborating on a 1/2.6-inch ultrawide camera sensor for the iPhone 18 and future iPhone models.

Samsung has already received tax subsidies from the US government after it invested in the country to set up advanced chip plants in Texas. With this additional investment, Austin City Council could extend the ‘Texas Enterprise Project' designation. The council is scheduled to vote on a motion on 20 November, and if it is passed, Samsung's Austin chip plant will be eligible for tax rebates from the state government for a certain period of time.

Apple could buy a substantial volume of camera sensors from Samsung, and those sensors will likely be made at Samsung's chip plant in Austin. Since the start of this chip plant back in 1996, the South Korean firm has invested over $40 billion, which is the single largest investment the state has received yet.

Samsung is building another chip plant in Taylor, Texas. This is where it plans to make advanced 2nm chips. The company has already bagged an order to make AI6 2nm chips for Tesla. The Taylor chip plant will begin operations sometime next year.