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Samsung seeks funds to expand A5/A6 chips making facility

Samsung might be seeking about 1 billion from Apple in order to boost the production of Apple’s A5 and A6 processor


Apple might need to pay a sum of around 1 billion to Samsung in order to boost the production of Apple’s A5 processor and the next generation A6 chipset. The production of these processors is expected to be facilitated at the Austin, Texas facility.

Samsung has already contacted banks regarding bonds to be issued by its US division, as they have reported to Bloomberg. This sum of money seems to be really a huge amount and feel like Samsung is taking advantage of favorable borrowing costs and looking to predict huge demand for future ARM based Gadgets from Apple.

The Texas production facility which began last month is of around $3.6 billion. It is capable of producing about 40,000 silicon wafers per month. It is believed, the line – with footprint equal to around nine football pitches and started producing at maximum rate in the fourth quarter of 2011, although supply to Apple began early in 2011.

Although Samsung is believed to be filled with cash but from this report it feels as they are still looking for more external options. The company is believed to own about $19 billion in cash and cash equivalent at mid third quarter of 2011.

According to some analyst the logic-chip spends may get doubled this year. This will definitely help Samsung to increase the production as well as 

However, with the bulk going to Apple, Samsung’s production is also now helping the growth of their rival. As we know, both these giants are dragging each other to different courts across the world. It is also interesting to see that Apple dependent on Samsung to furnish the scale of chipsets they require.



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Pallab Jyotee Hazarika, 2012-01-17 (Update: 2012-05-26)