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Apple's A5 processor now manufactured in Texas

by Chris Rawson Dec 16th 2011 at 10:00AM

"Designed by Apple in California" -- you'll find that on virtually every Apple product. While it's well-known that the brains of Apple's outfit are indeed housed in California, it's almost as well-known that Apple's products are almost wholly manufactured overseas. Indeed, Apple has been a target of criticism in the past because of how much it relies upon labor outside the US.

However, according to a new report from Reuters, apparently at least one major component of Apple's portable devices is in fact manufactured in the States -- in Texas, to be more specific. Reuters reports that the A5 processor that powers both the iPad 2 and iPhone 4S is built in a Samsung-owned, 1.6 million square foot factory in Austin, Texas.

The A5 production line in Austin reportedly reached full production earlier this month, and Reuters' sources say nearly the entire factory's non-memory production is geared toward cranking out A5 chips for Apple. Previously the only source of A5 chips was Samsung's factory in South Korea.

Austin's A5 production line has created 1100 new jobs in the Austin area, Reuters says. Reports from earlier this year indicated that rival production firm TSMC may produce the next-generation A6 processor instead of (or possibly in addition to) Samsung. While Samsung is the main supplier for many of the central components of Apple's iOS-powered devices, it is also one of Apple's chief competitors in the smartphone market. The two companies have also been embroiled in a knockdown-dragout patent battle across multiple continents for several months, so it's not clear just how long this Samsung production line in Texas will be doing business with Apple.



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"Designed by Apple in California" -- you'll find that on virtually every Apple product. While it's well-known that the brains of Apple's...
 

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23 Comments

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Rick A

Or maybe it's just that Samsung knows how to train its American employees so they are competitive.

If something goes wrong in a company, it is management's fault, not labor's

December 21 2011 at 12:52 PM Report abuse rate up rate down Reply
G Pcfixfouroneone Be

Its always a good thing when things are made in the USA.

December 16 2011 at 6:28 PM Report abuse +1 rate up rate down Reply
macserv

This would be a great story for the US economy if it weren't for the two words "Samsung-owned". It's nice that the factory is here, and that a quite a few of Americans will be put to work. In the end, it does very little to benefit the US; Korea reaps the vast majority of the chip sales.

It's just like any US-based Hyundai, Toyota, or Honda automobile manufacturing facility. It's great PR for those companies, keeps a good number of Americans employed, and sells a lot more cars to people who think it matters that the cars are built here, while almost all of the money from those auto sales goes back to Asia.

December 16 2011 at 6:08 PM Report abuse -1 rate up rate down Reply
1 reply to macserv's comment
Hugues

Huh... So are you saying in return that a US owned factory in China is a good thing?
The jobs are here in the US. So when it goes overseas (to China) to be assembled it is considered as export! So at least it's good for the trade balance.
Regarding car manufacturers... i think it has more to do with economical sense than just PR. They have a considerable market here, it is better for them to produce close to your market.

December 16 2011 at 11:52 PM Report abuse -1 rate up rate down Reply
Ankush Narula

So Samsung will fab chips in Austin, ship them back to Korea/China (7000-8200 miles) for IC assembly and then over to Foxconn in Shenzhen (500-1200 miles) for Apple product assembly. I wonder how many other parts for Apple products get to travel such long distances and burn up lots of jet fuel?

December 16 2011 at 12:23 PM Report abuse +2 rate up rate down Reply
2 replies to Ankush Narula's comment
Sodium

Well, on the bright side microchips aren't exactly huge nor heavy so ...

December 17 2011 at 9:59 AM Report abuse -1 rate up rate down Reply
arsenal6

its the new MNC development. LV bags have their parts made in italy then shipped to china for assembly.

December 19 2011 at 10:03 AM Report abuse rate up rate down Reply
mikehild

Maybe my perspective is different because I'm not an American, but I don't see why it matters where something is manufactured as long as the production quality and standards remain the same.

December 16 2011 at 12:20 PM Report abuse rate up rate down Reply
4 replies to mikehild's comment
Zaid Niazi

its pretty strange that apple is making their processors in Samsung`s factory.... : /

December 16 2011 at 11:50 AM Report abuse rate up rate down Reply
1 reply to Zaid Niazi's comment
plasmaborne4rel

Patients are suppose to protect your products so that if a competitor has a factory which also builds your products they can't copy the design as it's protected by law. Also a Corporation can easily buy your product and take it apart to find out the design so having a competitor manufacture your products doesn't really give them an edge. A competitor can easily copy your design, using the copied design is however, illegal.

December 16 2011 at 11:07 PM Report abuse rate up rate down Reply
DCM

This is significant. Like other posters, I wish an American firm could do this (i.e. IM Flash Technologies), but the real bonus for Apple is by having a US-made CPU, it could end up giving them considerable sway in which intelligence agencies use which smart phones and tablets. It is a huge topic of discussion within the US and its Allies. China is not a friendly partner.

December 16 2011 at 11:36 AM Report abuse rate up rate down Reply
Jackson Kavendish

Awesome, I'd love to see more of this and I'd be willing to pay a premium for US manufactured computer and tech products.

December 16 2011 at 11:18 AM Report abuse +2 rate up rate down Reply
Russ K.

...and now costs twice as much.

December 16 2011 at 10:54 AM Report abuse -2 rate up rate down Reply
robogobo

While this is a nice step toward fractional "made in the USA", it's creating jobs here, but still sending money out of the country. Why is it that an Asian company can figure out how to manufacture here but American companies cannot?

December 16 2011 at 10:28 AM Report abuse +3 rate up rate down Reply
2 replies to robogobo's comment
Shameer Mulji

It's isn't that they can't manufacture here. It's that they can't manufacture here while paying wages they pay in China so execs & shareholders reap the profits.

December 16 2011 at 12:01 PM Report abuse -1 rate up rate down Reply
Rick A

Apparently Asian companies don't have bloated executive compensation...

To an American executive, that is just plain wrong. If you can't get rich exploiting the workers, then why try?

Of course, it may just be that Asian companies are willing to make investments here, but American companies are not -- they call that patriotism.

December 21 2011 at 12:44 PM Report abuse rate up rate down Reply
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