Samsung Investing $4 Billion in Austin, Texas to Boost Smartphone Processor Production

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Original poster
Apr 12, 2001
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Samsung today announced that it will spend roughly $4 billion to revamp some of its existing facilities in Austin, Texas in order to boost production of its system-on-a-chip platforms that power a number of mobile devices including Apple's iOS products.
The funds will be used to renovate its existing fabrication operations to accommodate full System LSI production.

The remodeled fabrication line will mainly produce state-of-the-art mobile SoCs on 300mm wafers at the 28nm process node.

Starting work this month, the project is scheduled to initiate mass production within the second half of 2013. About 2,500 construction workers and equipment vendors will be at the site to retrofit the facility and set up the equipment.



Samsung's Austin chip production facilities (Source: Alberto Martinez/Austin American-Statesman)
As noted by the Austin American-Statesman, Samsung will be converting older facilities currently used for memory chip production.
Although Samsung does not say exactly who it is making the new chips for, technology industry analysts say the Austin factory is a key maker of low-power system chips.

The two key customers of the Austin fab, analysts say, are almost certain to be Apple Inc., which depends on Samsung to make essential smartphone chips, and Samsung's own smartphone business.
Austin is already a hub for both Samsung's system-on-a-chip production and Apple, with Samsung having opened a new factory dedicated to production of Apple's A5 chips just last December and Apple currently pursing a major expansion of its existing presence in the city.

Article Link: Samsung Investing $4 Billion in Austin, Texas to Boost Smartphone Processor Production
 

Puevlo

macrumors 6502a
Oct 21, 2011
633
1
Apple should stop giving money to these bottom feeders. Make your own fabrication labs Apple.
 

Twinsbb17

macrumors member
Oct 31, 2006
85
55
Woodbury, MN
Kudos for Texas for continuing to attract companies to expand, build new facilities, and promote growth. It's amazing what a business-friendly climate will do for a state.
 

KnightWRX

macrumors Pentium
Jan 28, 2009
15,046
4
Quebec, Canada
Apple should stop giving money to these bottom feeders. Make your own fabrication labs Apple.
Apple has no expertise in fabrication, no existing plant infrastructure, no components to fabricate chips (which are different from components required to assemble devices).

Why would it even be profitable for them to do this in-house ?

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The battle continues
What battle ? This is about a partnership both companies share.
 

alent1234

macrumors 603
Jun 19, 2009
5,659
122
I wonder why Samsung doesn't build these factories in China?
the hard work is in starting up a new CPU process and fixing things to have good yields. its not like pushing a button and the machine makes these things automatically. Intel spends months calibrating their machines for every new CPU release.

so far it seems only the simple things get sent to be done in China
 

G4DP

macrumors 65816
Mar 28, 2007
1,451
3
So if a Korean company thinks it's a good investment to continue with plants in the USA, why doesn't a American company do the same?

This says more about Apple than it does Samsung.

Apple has no confidence in the American manufacturing sector?
 

scottie2345

macrumors newbie
Apr 20, 2010
18
0
Rutland, UK
Apple should stop giving money to these bottom feeders. Make your own fabrication labs Apple.
WOW i cannot believe you said that, you do understand about the technology and work involved in making processors?, thought not, in this case apple are the bottom feeders, feeding of the advances of their suppliers, piss them off and you aint gong anywhere, I think apple needs to be careful of upsetting samsung, all the good stuff, better screens,faster cpu, memory etc aint coming from apple.
Sorry to have to let you know this but someone's gotta tell some of the folks around here.
 

Intarweb

macrumors 6502a
May 30, 2007
561
0
So the great and evil Korean company Samsung is going to be investing $4 billion dollars more in manufacturing in the good ol' U S of A than Apple does? At a time when manufacturing needs to come back to the United States, it's a Korean electronics company, not an American electronics company, leading the way.
 

Arnold Ziffel

macrumors newbie
Jan 28, 2008
24
21
"Business-friendly climate" in Texas?

Kudos for Texas for continuing to attract companies to expand, build new facilities, and promote growth. It's amazing what a business-friendly climate will do for a state.
It's more like corporations own the State of Texas, from Rick Perry <blech> on down.