[News Today] Samsung-Apple cooperation gains pace

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President Trump's global retaliatory tariffs officially took effect on the 7th. Washington is also signaling to raise semiconductor tariffs as well.

With certain tariff exemptions expected, South Korean tech giants like Samsung are accelerating their U.S. operations, including Apple chip production in Texas.

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Digital image sensors serve as the eyes of smartphones and they are the key parts that determine the quality of smartphone cameras.

So far, chips used in iPhone cameras have been supplied entirely by Sony of Japan, but recently Samsung has signed a deal for supplying next-gen chips to Apple.

Due to U.S. President Donald Trump's tariff policy, Apple has decided to team up with Samsung Electronics, because its technological prowess is guaranteed and it can produce chips in the U.S.

Kyung Hee-kwon / Institute for Industrial Economics & Trade
The Trump administration is demanding a more complete value chain, from parts procurement to manufacturing to assembly. Apple is apparently trying to adjust its supply network to get tariff exemptions.

Samsung's factory in Austin, Texas is already in operation, while its Taylor factory is to be launched soon.

They will each produce Apple's next-gen chips and Tesla's autonomous driving chips.

SK Hynix is set to open its new factory in Indiana.

Pundits say the impact on Korean companies will be limited, as Trump said companies that have factories in the states or plan to build ones there will be exempted from semiconductor tariffs.

Washington has also promised that South Korea will be treated as “most favored nation” in terms of chip tariffs.

However, some are calling for prudence, as the U.S. government has not disclosed details yet and President Trump could change his mind at any time.

Cho Seong-dae / Korea International Trade Association
It remains to be seen, as many details and clues are still missing, such as whether this applies to semiconductor or other factories.

Hyundai Motor is also stepping up cooperation with the U.S. in various sectors. Recently, the automaker has decided to develop new car models for the Central, South and North American markets jointly with General Motors.