Samsung's New Texas Factory for A5 Chip Production Now Fully Operational

Reuters reports that Samsung, Apple's manufacturing partner for a number of components in its iOS devices, has completed work on a new factory in Austin, Texas that is handling production of the A5 system-on-a-chip found in the iPhone 4S and iPad 2. Samsung had announced the $3.6 billion project in June 2010, but has not publicly admitted that the facility is dedicated to producing components for Apple.

The A5 processor - the brain in the iPhone 4S and iPad 2 - is now made in a sprawling 1.6 million square feet factory in Austin owned by Korean electronics giant Samsung Electronics, according to people familiar with the operation.

One of the few major components to be sourced from within the United States, the A5 processor is built by Samsung in a newly constructed $3.6 billion non-memory chip production line that reached full production in early December.

The report's source indicates that nearly all of the factory's production, which encompasses non-memory chips such as the A5, is dedicated to Apple. The new factory is said to have resulted in 1,100 new employees being brought on by Samsung, which also employees 2,400 employees at a NAND flash memory factory in Austin.

samsung austin facility
Samsung factory in Austin (Source: Austin American-Statesman)

Samsung's significant investment in Austin to provide Apple with chips for the iPad 2 and iPhone 4S signals the importance the company places on the supply relationship even as the two companies are locked in a global intellectual property dispute involving Apple's iOS devices and Samsung's own Android-based mobile hardware.

Apple had been said to be moving production of its future A6 and A7 chips for iOS devices to Taiwan Semiconductor Manufacturing Company, but more recent reports have claimed that Apple will be sticking with Samsung for at least the A6 and that Samsung is already ramping up production of the A6 at the Austin facility.

With Samsung's Austin facility now fully online, the company appears poised to meet Apple's surging demand for iPhone and iPad products as it is already preparing for the next generations of those devices to land sometime next year, almost certainly to be led by the iPad 3 early in 2012.

Popular Stories

iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Rumored to Use Same Rear Chassis as iPhone 16

Friday July 19, 2024 7:16 am PDT by
Apple will adopt the same rear chassis manufacturing process for the iPhone SE 4 that it is using for the upcoming standard iPhone 16, claims a new rumor coming out of China. According to the Weibo-based leaker "Fixed Focus Digital," the backplate manufacturing process for the iPhone SE 4 is "exactly the same" as the standard model in Apple's upcoming iPhone 16 lineup, which is expected to...
Apple TV Plus Feature 2 Magenta and Blue

Apple TV+ Curbs Costs After Expensive Projects Fail to Capture Viewers

Monday July 22, 2024 5:11 am PDT by
Apple is scaling back its Hollywood spending after investing over $20 billion in original programming with limited success, Bloomberg reports. This shift comes after the streaming service, which launched in 2019, struggled to capture a significant share of the market, accounting for only 0.2% of TV viewership in the U.S., compared to Netflix's 8%. Despite heavy investment, critical acclaim,...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Just Two Months Away: Everything We Know

Monday July 15, 2024 4:44 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
iPhone 17 Plus Feature Purple

These 5 Features Will Make the iPhone 17 the Biggest Update in Years

Monday July 22, 2024 4:02 pm PDT by
The upcoming iPhone 16 models that we're expecting to see in September are going to be quite similar to the iPhone 15 models, but rumors suggest that Apple is making big changes in 2025. We've been hearing hints of an all-new device in the iPhone lineup, and it may be the most expensive iPhone Apple has offered to date. New 'Slim' Design Rumors have taken to referring to the new iPhone 17...
iPhone SE 4 Thumb 1

iPhone SE 4 Rumored to Launch Early Next Year With OLED Display, 48MP Camera, and More

Monday July 22, 2024 7:22 am PDT by
The fourth-generation iPhone SE will offer a series of major upgrades over the current model, the leaker known as "Ice Universe" claims. The information was listed in a post on Weibo, which also detailed the specifications of the iPhone 17 lineup. As previously rumored, the fourth-generation iPhone SE is expected to feature Face ID and USB-C, marking a major upgrade from current and previous ...
bsod

Microsoft Blames European Commission for Major Worldwide Outage

Monday July 22, 2024 11:55 am PDT by
Last Friday, a major CrowdStrike outage impacted PCs running Microsoft Windows, causing worldwide issues affecting airlines, retailers, banks, hospitals, rail networks, and more. Computers were stuck in continuous recovery loops, rendering them unusable. The failure was caused by an update to the CrowdStrike Falcon antivirus software that auto-installed on Windows 10 PCs, but Mac and Linux...

Top Rated Comments

kaizenmx Avatar
165 months ago
The irony of this entire article and situation is off the chart...
Score: 20 Votes (Like | Disagree)
SilianRail Avatar
165 months ago
A Korean company builds a chip factory in the Texas to be assembled into a product in China. This makes no sense to me just from the logistical complications, let alone the wage differences.
Score: 17 Votes (Like | Disagree)
Oletros Avatar
165 months ago
Whats to keep samsung from copying all the tech for the new SOC and using it in oh.say. a new galaxy tab ?

:D:D:D:D:D

Yap, Samsung needs to copy SOC or processor technologies because they don't have any experience.

I like people making such ridiculous claims thinking the only one that knows nothing about all is Apple.

There must be a good place this bubble, but there are a real world outside
Score: 10 Votes (Like | Disagree)
Fairfax Avatar
165 months ago
Nice to see a tech company opening up a factory in the USA.
Score: 10 Votes (Like | Disagree)
Oletros Avatar
165 months ago
Yup. Samsungs real good at making their own distinctive stuff.

:rolleyes:
Distinctive like Soc or processor technology? Yes, keep getting owned, is funny
Score: 9 Votes (Like | Disagree)
stevemiller Avatar
165 months ago
Do people come here to post primarily as an outlet for their anger issues or something?

Mobile devices have become this strange surrogate for tribal warfare. Mind you I'm not saying to stop, it's bizarrely fascinating...
Score: 8 Votes (Like | Disagree)