In a recent report by Reuters it was revealed that Apple’s current A5 processor, that’s used in both the iPad 2 and iPhone 4S, is supplied by Samsung’s factory in Austin, Texas, instead of South Korea.
Samsung uses its 1.6 million sq.ft. factory, almost as big as 9 football fields, to produce the majority of the A5 processor chips for Apple. Earlier in the year, when the iPad 2 was launched with the A5 processor, and even the A4 processor used in the original iPad and iPhone 4, all production was done in the South Korean factory by Samsung in-house. Parts were then sent to Foxconn in China to be assembled into final products.
Earlier this month, the Austin facility went into full force with all of the A5 processors now being supplied to Apple directly from Austin.
Outside of the supply chain, Samsung and Apple have been in a plethora of legal battles against each other over product design disagreements between the two giants.
Perhaps it’s possible that Samsung wants to concentrate their full production of the current and next-gen Exynos processors used in their smarthpones for their factory in South Korea, while leaving the Apple processor production in US itself. One byproduct of this could be that supply costs increase for Apple as the A5 processors now have to be shipped from US to China, instead of neighboring South Korea.