Samsung reportedly building Apple A8 processors in Texas

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Samsung Electronics Co., Ltd. (KRX:005930) is expected to start producing the Apple Inc. (NASDAQ:AAPL) next generation A8 processor at its plant in Austin, Texas, according to sources with ZDNet.

Samsung has already signed a contract to produce the A8 processor and is in the final stages of testing. Mass production is expected to start soon.

This information contradicts earlier reports that Samsung was unable to provide high yields of the A8 processor and that Apple was going to shift production over to Taiwan Semiconductor Manufacturing Company (TSMC). A Samsung source said that the “manufacturing issues” were “exaggerated.”

The A8 is expected to start mass production in Q2 2014. Samsung and TSMC will likely split the A8 production, but it sounds like TSMC has already started mass production. Samsung used to be the exclusive manufacturer for Apple’s A-series chips, but a lot of that business has been moved to other suppliers.

Apple made a deal with TSMC in 2013 to start A-series chip production in early 2014.

[Source: ZDNet Korea]

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