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Apple A5 chip production drives $3.6-billion Samsung fab expansion

Wednesday, March 30, 2011 · 9:00 pm · 24 Comments

“Samsung Austin Semiconductor will hire 300 engineers and technicians in the first six months of 2011 as part of the $3.6-billion expansion of the semiconductor’s plant,” Mark LaPedus reports for EETimes.

“At the same time, Samsung has opened an R&D center in Austin. The expanded fab will now produce logic devices for Samsung’s System LSI business,” LaPedus reports. “Previously, the Austin plant only made NAND flash memory chips. The production of those chips will continue.”

LaPedus reports, “Most of the production is geared for one foundry customer-Apple Inc., sources said.”

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Comment Feed

24 Comments

Arnold Ziffel

Wednesday, March 30, 2011 - 9:03 pm · Reply

This is good news for Austin. As Dell continues its long slide into oblivion, it’s nice to know Apple’s success will benefit Texas’ best city.
- randy hyde
  
  Thursday, March 31, 2011 - 5:57 pm · Reply
  
  Well, Texax’ weirdest city at any rate
qka

Wednesday, March 30, 2011 - 9:19 pm · Reply

Good to know that at least the CPU in the iPad is made in the USA.
- breeze
  
  Wednesday, March 30, 2011 - 10:07 pm · Reply
  
  Give it time and the farm will blossom into a US producertoo
jmmx

Wednesday, March 30, 2011 - 9:27 pm · Reply

I am beginning to be a little surprised that Apple does not go into the production business itself. Perhaps it intends to let Samsung build them, get them up and running, and then buy out the “Apple division.”
Doug

Wednesday, March 30, 2011 - 9:28 pm · Reply

An example of how global economics works. A U.S. company, Apple, contracts a South Korean company, Samsung, which makes processors in Texas for a tablet computer assembled in China, most of which are sold in the U.S.
- bob
  
  Wednesday, March 30, 2011 - 10:16 pm · Reply
  
  “most of which are sold in the US” ??????
jmmx

Wednesday, March 30, 2011 - 9:30 pm · Reply

They should, however, build them up here in Oregon, where at least we will still have water after AGW sets in in full force!

(Just a friendly dig at you Texas folk!)
- KenC
  
  Wednesday, March 30, 2011 - 11:02 pm · Reply
  
  Uhm, no. Got to watch out for that Cascadia Fault.
- TowerTone
  
  Wednesday, March 30, 2011 - 11:43 pm · Reply
  
  Speaking of accelerated, Oregon may soon bask in the newest import form Japan.
  The Nagasaki Revenge…
  - TowerTone
    
    Wednesday, March 30, 2011 - 11:45 pm · Reply
    
    ‘form’?
    Mad you, dyslexia…..
    - skylark
      
      Thursday, March 31, 2011 - 4:58 am · Reply
      
      Hey … I resemble that remark.
    - Davdi
      
      Thursday, March 31, 2011 - 7:00 am · Reply
      
      Dyslexics of the world: Untie!
- Tommy Boy
  
  Thursday, March 31, 2011 - 10:29 am · Reply
  
  @jmmx: Quick geography lesson, the Chihuahuan Desert is about 2½ hours west of Austin, which sits in hill country where there is plenty of rain, but isn’t a rain forest like the Pacific Northwest.
  - ChrissyOne
    
    Thursday, March 31, 2011 - 12:40 pm · Reply
    
    Quick climate lesson – most of the Pacific Northwest isn’t a rain forest. It only feels that way.
YipYipYipee

Wednesday, March 30, 2011 - 11:54 pm · Reply

I’ve read the article. I understand the article. But if true, the practical output of a multi-billion dollar fab is for Apple products only. That is incredible to believe. Wow.
micheljoyner

Thursday, March 31, 2011 - 6:40 am · Reply

Wow really nice info, and i am always excited for apples new product..
http://leanspacleansewarning.com/
TimD

Thursday, March 31, 2011 - 7:14 am · Reply

I thought Apple had pulled it’s ARM chip production away from Samsung?
TimD

Thursday, March 31, 2011 - 7:36 am · Reply

Looks like I was wrong.
http://www.chipworks.com/en/technical-competitive-analysis/resources/technology-blog/2011/03/apple-a5-samsung-not-tsmc/
Magnus

Thursday, March 31, 2011 - 8:23 am · Reply

The Apple team that designs the processors is in Austin as well…
vsp

Thursday, March 31, 2011 - 9:09 am · Reply

Apple should not rely on Judas for its critical components.
Karnak

Thursday, March 31, 2011 - 11:32 am · Reply

Today’ conspiracy theory: Samsung is intentionally making it’s Android phones and tablets unuseable to boost their A5 chip production where the real money is. We’re on to you, but we’ll keep it on the down low in case Mr. Page is listening (he’s always listening)…
melgross

Thursday, March 31, 2011 - 11:43 am · Reply

i don’t understand why Apple doesn’t go with Intel for this. Intel has more than enough capacity for foundry work, and they do it.

The big advantage for Apple world’s be the world’s best fabs, running at 32nm for well over a year, while everyone else is either just getting started in volume production, or isn’t there yet at all.

Rumors spin around that Apple will go to TSMC with its terrible fabs, which makes no sense. Another reason to go with Intel is that right after Apple bought a small amount of Imagination, their iOS gpu manufacturer and designer, Intel bought a slightly bigger piece, so they both have an interest there.

This would appear to be a win win situation. I wonder what’s stopping it?
- Snodayze
  
  Thursday, March 31, 2011 - 6:13 pm · Reply
  
  It’s called competition.