Samsung (005930.KS) Retakes $1T on Apple Foundry Talks
TL;DR - Bloomberg reported May 5 that Apple held early-stage talks with Samsung Electronics and Intel about producing main device chips in the United States, with executives visiting Samsung's Taylor, Texas fab under construction. - The report propelled Samsung Electronics (005930.KS), Korea's largest company by market value, back above the $1 trillion market-cap threshold, while Intel surged roughly 14% to a record near $110.48. - Watch whether the visits convert into a binding wafer order, and whether Samsung's Taylor facility ramps to volume on schedule in late 2026.
Lead
Samsung Electronics (005930.KS), Korea's flagship chipmaker and the country's most valuable listed company, was thrust back into the global trillion-dollar club on May 5 after Bloomberg News reported that Apple is weighing the firm — alongside Intel — as a U.S. foundry alternative to longtime partner Taiwan Semiconductor Manufacturing (TSMC). Apple executives have visited Samsung's under-construction Taylor, Texas fab to discuss producing advanced device processors, while early-stage talks are also underway with Intel's foundry arm, according to Bloomberg. No orders have been placed.
What Happened
Bloomberg reported that Apple held preliminary discussions with both Samsung Electronics, Korea's largest semiconductor manufacturer, and Intel about manufacturing the main system-on-chip processors that power its iPhones, iPads and Macs in U.S. facilities. The chips at issue include Apple's A-series for iPhones and M-series for Macs and iPads, currently produced by TSMC on a 3-nanometer process, per Chosun Biz citing Bloomberg.
The market reaction was swift. Samsung Electronics shares rallied enough to push its market capitalization above $1 trillion, according to Seeking Alpha, which timestamped the milestone at 12:43 p.m. ET on May 5. Intel shares jumped about 14% to an intraday high of $110.48, hitting a fresh all-time high, according to CNBC and 24/7 Wall St. Bloomberg also separately reported Apple plans to let users select rival AI models inside iOS 27 features, underscoring a broader supply-and-platform reshuffle at the iPhone maker.
Both Apple and Samsung declined to be quoted in the Bloomberg piece, and the report stressed the talks remain exploratory, with internal Apple concerns about moving away from TSMC manufacturing technology.
Why It Matters
This is the first concrete signal that Apple's long-discussed effort to diversify away from a single Taiwan-based foundry partner is moving from theory to active site visits. For Samsung Electronics — ticker 005930.KS on the KOSPI (Korea's benchmark equity index) — even a partial Apple order would be a structural shift, not just a contract win. Samsung Foundry held only 7.1% of the global foundry market in the fourth quarter of last year against TSMC's 70.4%, according to Seoul Economic Daily, and the company has struggled to close the leading-edge gap since yield problems forced it to abandon its in-house Exynos 2300 application processor in 2023, per the same outlet.
For Korea, the symbolism is unusually loaded: Samsung competes head-on with Apple in smartphones, and supplying Apple's flagship silicon would mark a competitive reversal a decade in the making. Samsung first crossed the $1 trillion mark on February 26, 2026, when shares closed at ₩218,000 ($159) for a 7.13% one-day gain, becoming the first Korean company to reach that threshold, according to Seoul Economic Daily.
Business Impact
Samsung's Taylor, Texas campus is the linchpin. The company unveiled a $17 billion (₩23.3 trillion) investment plan for the site in November 2021 and broke ground in the first half of 2022, according to The Korea Herald, which also reported Samsung will relocate roughly 1,000 staff into a newly completed six-story office building over the next two quarters. The fab is expected to be operational by late 2026 and the broader campus has long-term room for as many as 10 plants, per the Korea Herald.
Samsung is already lining up anchor tenants beyond Apple speculation: Tesla CEO Elon Musk confirmed a $16.5 billion AI chip supply agreement under which Tesla's next-generation silicon will be produced at Taylor once the plant comes online, according to The Korea Herald. Samsung has stated it aims to return its foundry division to profitability by 2027 after narrowing operating losses, the same outlet reported.
For Intel, helmed by chief executive Lip-Bu Tan, an Apple deal would validate its turnaround foundry pitch. The stock is up roughly 175% year-to-date and more than 330% since the U.S. government took an equity stake last August, according to CNBC.
Industry & Historical Context
Apple and Intel previously partnered from 2006 until Apple completed its transition to in-house Apple Silicon in June 2023, when the M2 Ultra Mac Pro replaced the last Intel-based Mac, per 9to5Mac. Since then Apple's leading-edge silicon has been exclusively fabricated by TSMC. TSMC plans to lift 3-nanometer wafer output to 180,000 wafers per month, a roughly 40% year-on-year increase, according to Seoul Economic Daily — a scale Bloomberg's reporting characterized as something "Intel and Samsung can't reliably offer."
Geopolitics is the unspoken accelerant. Apple has long preferred multi-source supply for critical components, and concentrated leading-edge fabrication in Taiwan is increasingly viewed inside Cupertino as a long-tail risk, Chosun Biz reported, citing Bloomberg. Samsung already manufactures iPhone camera image sensors at its Austin, Texas facility, per Seoul Economic Daily, providing a thin operational thread between the two companies.
What to Watch
Three near-term checkpoints will determine whether this rally has legs. First, any disclosure — via DART (Korea's electronic disclosure system) or Apple's SEC filings — of a binding wafer agreement. Second, on-time first production at Taylor in late 2026, which Samsung has guided toward but not yet demonstrated at scale. Third, signaling from MOTIE (Korea's Ministry of Trade, Industry and Energy) and the U.S. Commerce Department on whether the deal aligns with U.S. CHIPS Act objectives. Until then, today's move reflects expectations, not orders.
Sources: - Chosun Biz — https://biz.chosun.com/it-science/ict/2026/05/05/ITNB7L3IARGNVAQWV2HI7QMIMU/ - Bloomberg (video, Apple Weighs Using Intel, Samsung) — https://www.bloomberg.com/news/videos/2026-05-05/apple-weighs-using-intel-samsung-for-device-processors-video - CNBC — https://www.cnbc.com/2026/05/05/intel-intc-stock-apple-talks-report.html - Seeking Alpha — https://seekingalpha.com/news/4585775-samsung-joins-the-1-trillion-club-as-apple-chip-talks-spark-rally - Seoul Economic Daily (foundry deal) — https://en.sedaily.com/finance/2026/05/05/samsung-foundry-may-win-apples-iphone-brain-chip-deal - Seoul Economic Daily ($1T milestone) — https://en.sedaily.com/finance/2026/02/26/samsung-electronics-breaks-1-trillion-market-cap-jumps-to - The Korea Herald (Taylor ramp) — https://www.koreaherald.com/article/10617705 - 9to5Mac — https://9to5mac.com/2026/05/04/report-apple-considers-intel-and-samsung-to-diversify-chip-manufacturing-away-from-tsmc/ - 24/7 Wall St. — https://247wallst.com/investing/2026/05/05/intel-rips-14-higher-apple-foundry-reports-crush-bears-in-massive-short-squeeze/
By LineVest Markets Desk — May 5, 2026
This article is for informational purposes only and does not constitute investment advice.
