Samsung's A5 Chip Production in Texas in Full Swing
The folks over at Reuters
are reporting that Apple’s South Korean component supplier (Samsung) has reached full production at its 1.6 million square-foot factory earlier this month. Although Samsung reportedly began producing A5 processors at the plant earlier in the year, the company only recently reached full capacity.
According to the publication, “nearly all of the output of the non-memory chip production from the factory…is dedicated to producing Apple chips.” The company already produced NAND Flash memory chips at the facility and the reports are claiming the new production line costs $3.6 billion to build, while the company’s total investment in Texas amounts to roughly $9 billion. The only other non-memory logic chip factory Samsung has is located in South Korea. Furthermore, a Samsung spokeswoman told Reuters
that 1,100 jobs have been added for the new production line, in an effort to keep up with production.
Apple introduced the A5 chip with the iPad 2 in March and eventually added it to its iPhone line with the release of the iPhone 4S in October. The chip reportedly costs $25 to build, though volume production is believed to have brought the price down to around $15, roughly in line with prices of some of its competing chips. We’ll have to see how long Apple continues to deal with Samsung as the relationship between the two continues to sour on a weekly basis. Though Apple is set to become Samsung’s biggest component customer this year, the two also seemed to be locked in many legal battles with one another over patents related to smartphones and tablets. Apple has reportedly signed deals for the next generation processor (presumably the A6), which is believed to be a quad-core model, with both Samsung and the Taiwan Semiconductor Manufacturing Co, so it may very well be that the two will continue to work together despite everything else that seems to be going on.