Financial terms for the arrangement were not disclosed.
News first emerged about two years ago that Samsung would supply iPhone chips for its upcoming A9 processor. The current iPhone 6 and iPhone 6 Plus come with the latest A8 chip, with an embedded motion-tracking microprocessor. The next iPhone is expected to be released later this September.
Though Apple relies on Samsung for its chips, the relationship has been fraught -- with Apple bringing a slew of litigation against the South Korean giant for alleged patent infringement.
As Samsung's contract to provide chips to Apple expires in 2014, the company was already preparing to hike its chip prices by 20 percent to its Cupertino, Calif.-based customer just months before securing the A9 chip contract, amid the height of its courtroom conflicts.
The question remains over which company is providing Apple with the remaining 25 percent of the chips -- which some have speculated could in fact be Apple itself.
There's been little as of late out of the "special projects" department run by former Apple hardware chief Bob Mansfield, who went on to retire but was brought back to head up the secretive division that reports directly to chief executive Tim Cook.
If Apple continues to rely on Samsung for its chip-making effort, that suggests Apple's own in-house chip-building work isn't going so well. Or, if the cost-benefit is that Samsung does a better job -- albeit for a profit -- so be it. But no doubt as tensions continue between the two companies, there remains a mutually-assured destruction policy. Samsung could drop its biggest rival in an icy lake for a massive profit dip, but the deal generates too much cash for the Korean giant to ignore.