U.S. tech firm Apple says Samsung Electronics will produce Apple’s next-generation chip at its chip foundry in Texas for Apple products.

Apple made the announcement on Thursday in a press release, saying it is working with Samsung at the latter’s semiconductor plant in Austin to develop an innovative new chip manufacturing technology that is being used for the first time in the world.

Apple said that by bringing this technology to the U.S. first, this facility will supply chips that optimize the power and performance of Apple products, including iPhone devices, shipped all over the world.

Industry sources speculate that the Samsung chip in question is likely a CMOS image sensor to be used in next-generation iPhones.

Samsung recently signed a 16-point-five billion dollar deal with Tesla to supply chips for the U.S. automaker.