Samsung will manufacture next-generation chips for Apple at its Texas factory in the United States

Samsung Electronics Co said on Thursday it will produce chips at its Austin, Texas, U.S. chip foundryappleThe company's next-generation chip. In a press release, Apple said it is working with Samsung's semiconductor factory in Austin to develop an innovative new chip manufacturing technology that will be used for the first time in the world.

Apple said this is the first time the technology has been introduced in the United States and that the factory will provide chips that optimize the energy efficiency and performance of its products, including iPhones sold around the world.

Industry observers believe that this chip is likely to be a CMOS image sensor (CIS) for the next generation iPhone.

Samsung Electronics declined to confirm details.