Apple's A5 Processors Are Made on a $3.6 Billion Samsung Production Line—in Texas

Illustration for article titled Apples A5 Processors Are Made on a $3.6 Billion Samsung Production Line—in Texas

Everybody knows all of our electronics are made overseas, by teethings masses anonymous Asian factory workers laboring night and day. Which is why it's quite amusing to find out that Apple's A5 processor is built on a $3.6 billion Samsung production line in the middle of Texas.


According to Reuters, the A5 processor — used in both the iPhone 4S and the iPad 2 — is made in a Samsung plant in Austin, Texas.

The factory, operational since 1996, previously just made NAND flash memory chips. But a cash injection, which means the plant has now cost Samsung $3.6 billion, and a boost in staff numbers means the production line, with over 1,100 workers, now produces semiconductors. It seems, though, that Apple accounts for almost all of the non-flash output of the factory.


The iPad 2: Designed in California. (Partly) built in Texas. [Reuters]

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This may be a stupid question. I know it wouldn't be profitable for Samsung if they stopped making the processors for Apple, but given recent circumstances between Apple and Samsung, can't Samsung prevent the lawsuits by threatening to stop production of Apple's A5 processors? Or is it easy enough to find an alternative to Samsung thus that Samsung actually needs Apple more than Apple needs Samsung?