Samsung to invest $4 billion in iPad, iPhone chip plant

By , Aug 21, 2012

Imagine a symbiotic relationship where each party depends on the other, but they are continually fighting and you’ll have a good picture of Apple and Samsung. The latest episode in the ultimate case of frenemies happened Tuesday as the South Korean chip giant pledged nearly $4 billion to upgrade a plant producing chips for Apple’s iPhone and iPad.

Samsung said it will plunk down around $4 billion to renovate the Austin, Texas plant in order to boost production of ARM-based chips, many used in Apple’s iPhone, iPad and other consumer technology, Reuters reports today. This after Samsung  just unveiled plans to build in South Korea a new $1.98 billion logic chip plant for Apple and other smartphone makers…

Don’t let the courtroom fight between Samsung and Apple confuse you. In the world of multinational, multi-interest tech corporations, the right hand may despise what the left hand is doing — but still profit from its competitor. Although Samsung’s Galaxy tablet and smartphone are engaged in trench warfare with the iPad and iPhone, the company’s chip division is widely believed to be Apple’s largest supplier.

There have been some hints Apple wants to extricate itself from this odd relationship. In 2011, the iPhone maker reportedly inked a pact with the Taiwan Semiconductor Manufacturing Company to supply ARM chips. Samsung’s ARM chip comprises more than 12 percent of what Apple pays to build an iPhone, according to researchers at IHS Suppli.

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  • Ronald Weaver

    Some of my Elder friends stress to me all the time about the importance of jobs for us Americans. Especially for products that we buy and use. Thank you Samasung for providing men and women work in the United States of America.

    • jdshorrock

      …and Apple for keeping them in business

  • http://twitter.com/MCaudebec Maxim∑

    Samsung: spends 4 billion

    Tim Cook: I think we will have someone else manufacturer our chips

    • http://www.facebook.com/joe.jonsen Joe Jonsen

      its not safe to have samsung making apple chips..

  • Loopthree

    “Imagine a symbiotic relationship where each party depends on the other, but they are continually fighting”

    Have you met my sisters?

  • http://www.facebook.com/profile.php?id=1368694057 Jean Claude Tohme

    I read many posts including :
    Surprise, a lot of folks get confused between Apple and Samsung products, and the ones about the court, and now how they need each other. So Apple and Samsung are twins who keep fighting and you can’t sometimes know the difference unless you are close to one of them but they need each other more than anything. Thanks for reading.

  • http://www.facebook.com/profile.php?id=604885391 Richard Borkovec

    So Samsung is investing over $4 billion to help Apple’s products have better chips/keep making the chips, and Apple still wants $2.5 billion for “damages.” Oh yeah, totally fair…not.

    • No more Obama

      haha quite true!

    • Andrew

      Apple designed their own chips… but engaged Samsung to manufacture them and in turn paying them for it. This is a business transaction… nothing to do with the current lawsuits. If Samsung were to design the chips and manufactures them… then it’s a different ball game.

      • http://www.facebook.com/profile.php?id=604885391 Richard Borkovec

        And yet they still went to Samsung to manufacture them. Apple knows Samsung has the equipment to mass produce their chips cheaper and faster than anyone else. It would cost Apple way more than $4 billion to build their own manufacturing plant. Looks like they need to look at the “don’t bite the hand that feeds you” adage again.

  • http://www.facebook.com/joe.jonsen Joe Jonsen

    hmmm yeah so what is samsung put faulty chips in all iphones how can apple be sure they can trust a company like samsung????

    • No more Obama

      you’re joking right? yes or yes?

  • dady king

    Can some one explain what these guys are cookin.. I am totally confused.. I mean why don’t apple itself try to make their own chip by hireing good hardware team.