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'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
While all Macs are now powered by Apple's custom-designed chips, a new rumor claims that Apple may rekindle its partnership with Intel, albeit in a new and limited way.
Apple supply chain analyst Ming-Chi Kuo today said Intel is expected to begin shipping Apple's lowest-end M-series chip as early as mid-2027.
Kuo said Apple plans to utilize Intel's 18A process, which is the "earliest...
Apple recently teamed up with Japanese fashion brand ISSEY MIYAKE to create the iPhone Pocket, a limited-edition knitted accessory designed to carry an iPhone. However, it is now completely sold out in all countries where it was released.
iPhone Pocket became available to order on Apple's online store starting Friday, November 14, in the United States, France, China, Italy, Japan, Singapore, ...
Cellular carriers have always offered big savings on the newest iPhone models during the holidays, and Black Friday 2025 sales have kicked off at AT&T, Verizon, T-Mobile, and more. Right now we're tracking notable offers on the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air. For even more savings, keep an eye on older models during the holiday shopping season.
Note: MacRumors is...
Apple's online store is going down for a few hours on a rolling country-by-country basis right now, but do not get your hopes up for new products.
Apple takes its online store down for a few hours ahead of Black Friday every year to tease/prepare for its annual gift card offer with the purchase of select products. The store already went down and came back online in Australia and New Zealand, ...
We've been focusing on deals on physical products over the past few weeks, but Black Friday is also a great time of year to purchase a streaming membership. Some of the biggest services have great discounts for new and select returning members this week, including Apple TV, Disney+, Hulu, Paramount+, Peacock, and more.
Note: MacRumors is an affiliate partner with some of these vendors. When...
Apple's disappointing iPhone Air sales are causing major Chinese mobile vendors to scrap or freeze their own ultra-thin phone projects, according to reports coming out of Asia.
Since the iPhone Air launched in September, there have been reports of poor sales and manufacturing cuts, while Apple's supply chain has scaled back shipments and production.
Apple supplier Foxconn has...
On this week's episode of The MacRumors Show, we talk through the latest rumors about Apple's upcoming iPad mini 8.
Subscribe to The MacRumors Show YouTube channel for more videos
The next-generation version of the iPad mini is expected to feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple...
Apple's first foldable iPhone is expected to launch alongside the iPhone 18 Pro models in fall 2026, and it's shaping up to include three standout features that could set it apart from the competition.
The book-style foldable will reportedly feature an industry-first 24-megapixel under-display camera built into the inner display, according to a recent JP Morgan equity research report. That...
