iPhone A5 now made deep in the heart of Texas

The iPhone 4S and iPad 2 just got a little helping of Texas attitude.

Reuters is reporting that Samsung's new chip production facility in Austin, Texas has reached full capacity and Apple has started receiving shipments of their dual-core A5 processor from the 1.6 million square foot facility. The facility cost South Korea based Samsung nearly $3.6 billion dollars to construct and is setup to produce non-memory based chips for the electronics giant. Nearly all of the facility is dedicated to producing processors for Apple.

The built in Texas version of the A5 is one of the few parts that are sourced from the United States that Apple uses in its mobile devices. The final assembly is still done by Foxconn and is done in China and Taiwan.

Samsung says the new factory has created about 1,100 new jobs, brining their headcount to around 2,400 people in the Austin area. The plant produces around 40,000 silicon wafers every month. The plant is the largest foreign investment in the Texas economy according to the Austin Chamber of Commerce. Apple also employs a large number of people in Austin in one of their primary North American support call centers.

It is anticipated that the Austin facility will also produce the next version of the Apple processor, presumably called the A6, which could make its debut in the next generation iPad sometime in 2012.

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Have any of you noticed that more and more foreign car manufactures are building the factories in the US? This is a trend that is more common then most of you may know. Companies that made products overseas for the use/consumption in the US are starting to be made in the US by those same companies opening factories in the US. Another example Thyssenkrupp one of the largest steel manufactures in the world just spent 5 billion in developing a carbon steel processing facility in Calvert, Alabama.

So now instead of having the chips built in a logical place next to the factory where the devices are being assembled they have put the chip factory on the other side of the planet and must ship the processors on cargo containers or planes to the assembly in china then after ship the completed devices back to america to customers. Basically doubling the ecological impact.

I hope Foxconn builds a factory in America to make this all a little more worth while.

Vice said,
So now instead of having the chips built in a logical place next to the factory where the devices are being assembled they have put the chip factory on the other side of the planet and must ship the processors on cargo containers or planes to the assembly in china then after ship the completed devices back to america to customers. Basically doubling the ecological impact.

I hope Foxconn builds a factory in America to make this all a little more worth while.

Uh-Mericans jobs are more important then destroying the planet.

Vice said,
So now instead of having the chips built in a logical place next to the factory where the devices are being assembled they have put the chip factory on the other side of the planet and must ship the processors on cargo containers or planes to the assembly in china then after ship the completed devices back to america to customers. Basically doubling the ecological impact.

I hope Foxconn builds a factory in America to make this all a little more worth while.

I think also most of the rare earth materials used is primarily from the East as well...

So that's shipped here, chips are made, chips are shipped to China, iPhones are shipped back to US.

Vice said,
So now instead of having the chips built in a logical place next to the factory where the devices are being assembled they have put the chip factory on the other side of the planet and must ship the processors on cargo containers or planes to the assembly in china then after ship the completed devices back to america to customers. Basically doubling the ecological impact.

I hope Foxconn builds a factory in America to make this all a little more worth while.

you do realize these chips are incredibly tiny, and likely 5,000 can fit in the box that the iPhone comes in? its not like they are making car engines here and shipping to china for assembly.

srbeen said,

you do realize these chips are incredibly tiny, and likely 5,000 can fit in the box that the iPhone comes in? its not like they are making car engines here and shipping to china for assembly.

I know they are tiny but still.. just wasteful.

Shadrack said,
I think also most of the rare earth materials used is primarily from the East as well...

So that's shipped here, chips are made, chips are shipped to China, iPhones are shipped back to US.

Incorrect - there are businesses right now in the US that are mining these rare earth minerals for the very reason that businesses do not want to be dependent on China's mood swings.

Edited by Mr Nom Nom's, Dec 17 2011, 1:06am :

Shadrack said,
What an interesting relationship Apple and Samsung have.

We need their technology to make ours - but they CANNOT use technology similar to ours to produce their own product.
In honesty samsung could make A4-A6 processors for apple and likely make a good profit from them.

Marshalus said,

I've been around. 2002-2009, 2011+

One could say I took an extended vacation.

Well, welcome back Michael! There's no such thing as, too many news reporters.

Astra.Xtreme said,
Good to see these jobs are kept in America.

I would say these jobs are being brought to America, Samsung being a Korean company.

DJ Dark said,

So is the US becoming the next china? Lol

Hell, it has been that way with Asian (and even some European) car makers for a long time now.

roadwarrior said,

Hell, it has been that way with Asian (and even some European) car makers for a long time now.
Didn't get the hint of sarcasm eh?

DJ Dark said,
Didn't get the hint of sarcasm eh?

No, not really, since your comment was pretty accurate, at least in terms of manufacturing jobs. For delicate hand assembly jobs like the iPhone, it is generally cheaper to build them in Asia though.

Very good for Texas economy, but building such facility in Taiwan would have been more beneficial. Would cut on shipping costs and labour.

qdave said,
Very good for Texas economy, but building such facility in Taiwan would have been more beneficial. Would cut on shipping costs and labour.

Troll much?

Because I am sure Samsung threw a dart on a map when investing 3.6 billion dollars into a facility...yes completely on a whim i say.

qdave said,
Very good for Texas economy, but building such facility in Taiwan would have been more beneficial. Would cut on shipping costs and labour.

I think it's proof that companies can invest in manufacturing within the United States and still be competitive.

qdave said,
Very good for Texas economy, but building such facility in Taiwan would have been more beneficial. Would cut on shipping costs and labour.

Right. Qdave on Neowin realizes what those guys over at Saumsung who get paid to decide what is most effecient (in every capacity-this is capitalism yo) have no idea what theyre doing and enjoy picking random places and conduct zero research prior to investing billions..

Marshalus said,

I think it's proof that companies can invest in manufacturing within the United States and still be competitive.


No one is denying that you cant be competitive in USA. What i was saying that it probably would have been cheaper to make that plan in Taiwan or China. However i am glad that they build the plant in USA.

qdave said,

No one is denying that you cant be competitive in USA. What i was saying that it probably would have been cheaper to make that plan in Taiwan or China. However i am glad that they build the plant in USA.

Perhaps no one here is, I was making a generalization about the explanation corporations use for the need to ship jobs elsewhere in the world.

qdave said,
No one is denying that you cant be competitive in USA. What i was saying that it probably would have been cheaper to make that plan in Taiwan or China. However i am glad that they build the plant in USA.

Doubtful - there is very little in the way of labour input when it comes to assembling the CPU; the fact that it is closer to Apple means that engineers can work closely with Samsung's own engineers. The cost of shipping? hardly anything given that we're talking about a few cents per unit once you break the cost down on a per unit basis.