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We apologize, but this video has failed to load. Try refreshing your browser, or tap here to see other videos from our team. While Apple and Samsung battle it out in the courts over the design of the iPad compared to the Galaxy Tab, and vie for top spot in the smartphone market, the US company is relying on its rival for the essential processor in its tablet.
The A5 processor — used in the iPhone 4S and iPad 2 — is now made in a sprawling factory in Austin, Texas, which is owned by Korean electronics giant Samsung, according to people familiar with the operation. Nearly all of the output of the non-memory chip production from the factory is dedicated to producing Apple chips, one of the people said.
The South Korean giant began supplying the A5 processors to Apple from the Austin plant this year, the people said. Apple declined to comment, saying it does not detail supplier relationships. While most components for Apple devices are made overseas, its A5 processor, which power the iPhone 4S and iPad 2, is produced in the far away land of… Texas.
The A5 processors are manufactured in a factory in Austin, Tex. It employs about 3, people and is the second non-memory chip production facility owned by Samsung. According to the Reuters report, the facility was expanded to include a production line for such chips when Samsung signed a contract with Apple earlier this year.
Austin is also home to a very large Apple customer call center, which employs thousands of people.
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