December 16, 2011

Apples A5 Processors Made on Samsung Production Line in Texas

Jamie Keene, writing for The Verge:

“Samsung’s factory in Austin, Texas has been operational since 1996, and until recently only produced NAND flash memory chips. However, a report from Reuters published today suggests that the factory is also responsible for Apple’s A5 processor, used in both the iPhone 4S and the iPad 2.”

There’s anecdotal evidence all around that select manufacturing is slowly returning to the US, including this story by Brendan I. Koerner for Wired magazine.

Reduced shipping costs, reduced lag between prototype and finished product, and better quality make this the smart option for a growing number of companies who make things, but lack factories. Outsourcing to the US is good business.