Samsung's New Texas Factory for A5 Chip Production Now Fully Operational

[Hattig]

Apple canceling this contract will tank Samsung.

When TSMC finishes expansion with Global Foundries Samsung won't be needed.

I really don't think that you are aware of the size of Samsung.

"tank". Sheesh. Get over it.

 

[thekev]

For whatever reason, Austin is a tech giant. The "silicon hills" include companies like Samsung, National Instruments, Emerson, IBM, Apple (Austin Campus), and Dell in the north suburbs. I also applaud Samsung for expanding American jobs. While I don't care for their phone products, I admire that they and Apple can work as partners even in a hostile tech environment.

Texas is a cheap place to manufacture. I'm not sure how it really started around austin either.

Big impact on Apple - but I suspect Apple would own SAMSUNG due to the breach of contract damages.

I don't think Samsung makes this stuff as personal as Apple did under Steve Jobs. They aren't going to back out on something just due to corporate animosity.

So you're saying a leader in the semi conductors field, with patent filing/year numbers 2nd only to IBM and way ahead of Apple, that has been producing their own designs for years prior to Apple even coming up with the A4 would copy Apple's design ?

Sorry, I don't see the risk there, nor does Apple it seems. Samsung knows semi-conductors, they already make their own SoC, they don't need Apple's engineering, they have their own.

Frankly, Peace and anyone claiming "Samsung will copy Apple SoCs!" are just trying to bash the competition again.

It's just a gap in understanding. Many of these guys follow what Apple does far more than Samsung. They hear about Apple doing something. Every other company in the world must be a follower, right?

 

[Hattig]

Whats to keep samsung from copying all the tech for the new SOC and using it in oh.say. a new galaxy tab ?

Why would they bother doing that when they have their own Exynos SoC designs?

 

[Hattig]

Both shocking and cool to see complex SoC circuitry made in the USA again. Maybe this will start a trend.

And soon at GlobalFoundries' New York Fab8 too - that'll be 28nm and below.

 

[JAT]

So, do Korean newspapers print stories about how jobs are going overseas to USA, ruining their country?

 

[kaizenmx]

So, do Korean newspapers print stories about how jobs are going overseas to USA, ruining their country?

Why would they when they are already outsourcing manufacturing jobs to China?Only this time, they just outsourced it to US. Not to mention, with recent pass with KORUS FTA, expect more factories to be open in USA.

 

[something3153]

I'm not sure why in this country we bash oil companies for making an 8-10% profit but let companies like Apple off the hook with 20-25% profits. Apple and highly profitable US based companies like Apple should do more to bring jobs to Americans either directly or through contractors like this decision.

I applaud this decision and hope to see more of these things happening.

I've often wondered this in regard to this forum and the telecoms. They're bashed for "gouging" while making far smaller margins than Apple. Very odd.

 

[mark28]

You vastly overestimate the amount of money Apple provides Samsung. Samsung would grow back to where they are now without Apple in...3 years. Its just not in the shareholders best interest. However, in the interim, Apple components would go up in price. Apple could probably keep consumer prices the same, but their profit margins would shrink. It wouldn't sink Apple either, but would probably hurt Apple more since they have fewer parts available, whereas Samsung could take production of Apple goods and move it towards supplying other companies more. It'd hurt both businesses to the tune of millions of dollars a year, importantly.

Without Apple, Samsung would dominate the smartphone market. Samsung is already the #1 in Smartphones with Apple stealing away Samsung sales.

 

[jhead95]

What happened to Apple moving away from Samsung as a supplier?

 

[rdowns]

What happened to Apple moving away from Samsung as a supplier?

When you build as many devices as Apple does, it takes quite some time to change suppliers without completely disrupting your supply chain.

 

[KnightWRX]

When you build as many devices as Apple does, it takes quite some time to change suppliers without completely disrupting your supply chain.

Or you know, why change from something that works ? Samsung is a big supplier of semi-conductors and they have very efficient assembly lines for them.

 

[takeshi74]

Am i the only one who thinks its strange that on one side apple is suing samsung snd on the other side they are happy partners and buy displays from them?

If i was samsung, i'd question this deal.

No, there are plenty of others out there that don't understand because they try to substitute their personal feelings and emotions in the place of these businesses just as you're trying to do. This is business. It's not like your friendships. You can't think "If I was company X I would...". It doesn't translate the way you're attempting to do so. That's why you think its strange.

They renewed the contract for A6 chip. Which means apple still want to do business with samsung despite the fact that apple trying to troll Samsung with their stupid sueing competition.

Another person that doesn't understand business. Trolling and protecting your IP are two entirely different things whether you can tell the difference or not. A business that doesn't protect its IP is one that loses its IP and suffers from it.

To the Samsung-haters... "We have to let go of this notion that for Apple to win, Samsung has to lose."

Good luck tilting at that windmill. Most people only seem to understand the world via dichotomies which are, quite often, false -- hence the rampant fanboyism all over the place (and not just with smartphones but everything in life).

The notion of "win" is misguided to begin with. If Apple "wins" and crushes all it competitors then the consumers lose. Competition helps us.

Actually, when you read at some posts here, you'd also think that some people know more about Apple than Steve Jobs, Tim Cook, Jony Ive, and co combined

Nothing exclusive to this site or Apple. Every forum site has armchair experts who know better than the professional experts with actual experience.

It's very easy to make the tough decisions when you have hindsight and no responsibility or repercussions to deal with.

 

[satcomer]

What happened to Apple moving away from Samsung as a supplier?

That's my question too.

 

[Dbrown]

I'm not sure why in this country we bash oil companies for making an 8-10% profit but let companies like Apple off the hook with 20-25% profits. Apple and highly profitable US based companies like Apple should do more to bring jobs to Americans either directly or through contractors like this decision.

I'm amused how people here will actually brag about how apple is so obscenely profitable.

 

[vvswarup]

I'm not sure why in this country we bash oil companies for making an 8-10% profit but let companies like Apple off the hook with 20-25% profits. Apple and highly profitable US based companies like Apple should do more to bring jobs to Americans either directly or through contractors like this decision.

I applaud this decision and hope to see more of these things happening.

I'm not sure why you bash Apple for having things manufactured elsewhere to save money yet you let other companies like HP off the hook when they've been doing it for years.

Apple, like any other business, looks out for its bottom line in order to save money.

 

[AppleScruff1]

I've often wondered this in regard to this forum and the telecoms. They're bashed for "gouging" while making far smaller margins than Apple. Very odd.

I'm amused how people here will actually brag about how apple is so obscenely profitable.

If any other company makes a 10% profit, they are greedy and gouging the public. If Apple makes a 30% profit, they are providing a good product with good service and the more money they make the better it is for the consumer. It makes perfect sense.

 

[SeaFox]

That's my question too.

If they are, they need to start buying ACTUAL semiconductor companies. "Fabless" is just a nice way of saying "we own a bunch of IP but don't make anything".

 

[Dbrown]

I'm not sure why you bash Apple for having things manufactured elsewhere to save money yet you let other companies like HP off the hook when they've been doing it for years.

Apple, like any other business, looks out for its bottom line in order to save money.

Because HP doesnt have margins anywhere close to what apple makes.

 

[vvswarup]

Because HP doesnt have margins anywhere close to what apple makes.

Talk to me when you hear a business say, "We're making too much money so we're going to figure out a way to stop making so much money."

 

[Dbrown]

Talk to me when you hear a business say, "We're making too much money so we're going to figure out a way to stop making so much money."

Businesses can do whatever they want. But when everyone is making 5% margin and there is one company that is making 30% margin in the same industry, then that company no longer has the excuse for using cheap overseas labor.

 

[Rocketman]

Businesses can do whatever they want. But when everyone is making 5% margin and there is one company that is making 30% margin in the same industry, then that company no longer has the excuse for using cheap overseas labor.

There is no but. Businesses can do whatever they want, including using foreign labor for some things since the world has shrunk with internet and dirt cheap transportation. High margins are evidence of good management, not evidence they should give away or settle welfare issues for unfortunate people or countries until their margins equal badly managed companies.

The welfare mentality is exactly converse to a free market capitalist mentality that has risen more people out of poverty x10 than all worldwide government or redistribution efforts.

Rocketman

 

[dba7dba]

Yap, because when Apple cancels something they don't have to pay damages for it.

Not to mention Apple not having any physical product to sell. While Samsung could theoretically resell the components or make something else with the components...

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Samsung can't cancel their contract with Apple, they are its biggest customer. Apple would survive because there is other suppliers they could buy from, but would be a shock in the short run. Long run they can survive, you don't think there are contingencies just in case Samsung decides to slit its own wrists....

Samsung canceling this contract would waive goodbye to any chance to sell anything they produce, lose countless jobs, and wouldn't meet a quarterly estimate ever again. They rely on Apple to buy their products just like they rely on people to buy their own Galaxy products. Problem for them is, Apple's product is in more demand, so if they try to cut ties to gain the upper hand, Apple will find another supply chain and they will just lose out on the easiest money...

STOP with the BS that Samsung will lose out big because Apple is samsung's biggest customer. Apple contributes 4-5% of Samsung's revenue. And IF samsung somehow stopped making parts for Apple, Apple's manufacturing (well in China) would screech to a halt. A4/A5/screens/RAM. And these are not easy to replace, unless you want bigger/fatter/buggier/hotter end products. After months or even years of waiting.

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I'm amused how people here will actually brag about how apple is so obscenely profitable.

While Apple is not paying the taxes or dividends.

 

[Dbrown]

There is no but. Businesses can do whatever they want, including using foreign labor for some things since the world has shrunk with internet and dirt cheap transportation. High margins are evidence of good management, not evidence they should give away or settle welfare issues for unfortunate people or countries until their margins equal badly managed companies.

The welfare mentality is exactly converse to a free market capitalist mentality that has risen more people out of poverty x10 than all worldwide government or redistribution efforts.

Rocketman

then no one should complain about the high cost of gasoline.

 

[kdarling]

For whatever reason, Austin is a tech giant.

Partly because the University of Texas engineering school is there, and that provides lot of tech oriented workers.

There is no but. Businesses can do whatever they want, including using foreign labor for some things since the world has shrunk with internet and dirt cheap transportation.

High margins are evidence of good management, not evidence they should give away or settle welfare issues for unfortunate people or countries until their margins equal badly managed companies.

It used to be that being a good corporate citizen was considered part of good management, not just raw greed.

 

[MVallee]

If Apple has so many billions in cash, why could they not build their own facility to make the chips, and remove Samsung from the equation all together?