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

“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.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Wayne R.” for the heads up.]


  1. 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.”

  2. 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.

  3. 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!) 😀

    1. @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.

  4. 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.

  5. 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)…

  6. 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?

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