Samsung’s new $3.6 billion plant in Austin, Texas kicked into full swing last December, and it is responsible for manufacturing the A5 (and now A5X) CPU for the iPhone and iPad among other things. As production for the next iPhone and Mini iPad is reportedly in full swing, Samsung announced this morning that it will invest another $4 billion into its Austin plant. Reuters reported that the move is to renovate current production lines and the rate at which chips are produced.
Even with the changes, it is still unclear what responsibility the plant will play in manufacturing the processor for the sixth-generation iPhone due in late September. It could be a split with other facilities, which is believed to be the scenario for current chips, or the factory could stay with the A5 and A5X chips to keep up with demand. Time will only tell.
It certainly is ironic that Samsung is Apple’s largest chipmaker, especially taking into consideration the amount of legal heat both companies have thrown at each other. We are reaching the final days of the Apple vs. Samsung trial that is taking place in a San Jose, Calif. courtroom. Things have been getting relatively heated, and we learned a treasure-trove of information about both companies. Similar proceedings over different patents are expected to begin next year. The relationship is not very good to say the least.
With its $4 billion investment announced this morning, Samsung now has $13 billion invested in the Austin plant.