$4 Billion Investment from Samsung to Provide Apple Chips

Samsung Electronics Co. Ltd. had announced yesterday the $4 Billion investment to their existing Austin, Texas factory. The investment’s plan is to boost the production of ARM-based chips that are usually used in smartphones and tablets aside from renovation of the current facilities. This investment plan from Samsung does not include the $2 Billion manufacturing plant that they are going to build in its home country to better serve its customers.

Last year, Samsung had already finished the phase 2 construction of Austin facility, where they build A4 and A5 processors for Apple devices as well as other logic chips. Samsung’s total investment to its Texas plant will now account to $13 Billion, the largest foreign investment in Texas.

Can you imagine two companies that are consistently in court because of opposite accusations? Yet they have a give-and-take relationship from the inside that made both Apple and Samsung to stand in the latest technology nowadays. Though Apple replies on Samsung’s production of custom processors and other components, some analysts says that Apple is planning on getting away from Samsung and had announced the sign-up of Taiwan Semiconductor Manufacturing Company (TSMC) in producing its ARM chips for Apple mobile devices.

“The added ability in production will allow our customers to better respond to market needs,” said Woosung Han, President of Samsung Austin Semiconductor. The remodeled fab line will mainly produce mobile System-on-a-chip (SoC) on 300-mm wafers at the 28-nm process node. The renovation and upgrade will probably start next month with the focus on mass production of the retrofitted facility that will be expected on the second half of 2013.

Do not be confused about the courtroom battles of Samsung and Apple. After all, Samsung’s chip division is the largest supplier of Apple mobile devices. Do you think Apple and Samsung will not part separate ways in the next 5 years?