Samsung looking to expand in Austin for Apple A5/A6 chip

By Gary Johnson - Jan 17, 2012

Much has been spoken about in recent weeks about the next versions of the iPad and iPhone. One common feature about all the rumors and speculation is the fact the devices will have an improved and more powerful processor. It is now being reported that Samsung are looking to expand in Austin for the Apple A5/A6 chip.

The South Korean company is believed to be in talks with its banks to raise $1 billion to expand its plant in Austin, Texas. A report on AppleInsider is suggesting this is where the company produces the A5 processor, which are currently found in the iPhone 4S and iPad 2. It could also be where Samsung are planning on producing the A6 processor that is thought to be coming in the iPad 3.

Samsung revealed yesterday that it will issue its first bond on foreign shores since 1997 to help with the funding for expanding the Austin factory. It wants to lend up to $1 billion with five year maturity bonds that would be issued by Samsung’s US division.

The company’s processor business that currently takes care of Apples A4 and A5 chips that are found in the iPhone and iPad may increase spending in 2012 to around $6.95 billion. It is still uncertain though if the boost in capacity will be for its own mobile devices, or to meet demand for an unannounced processer that could be in the new iPad.

Its plant in Austin hit its maximum capacity last October as smartphone shipments increased 44 percent over the previous year. Samsung are seen as Apple’s biggest competitor in the smartphone sector, and recently reported record earnings with profits reaching $4.5 billion for the December quarter.

This came after the company had an estimated 32 million smartphone sales, and the company is believed to have more than $19.2 billion in cash. Do you own a Samsung smartphone?

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  • It annoys me all this talk about better chips.  Why not create a better battery?  This will make all devices better and the chips run a lot faster.

    I thought that they figured out how to adapt the massive batteries they use in the army to small devices.  They said with theses batteries, they would last 3x longer.