Apple “Imports” Processors from Austin factory

Once again, the City of Austin has shown that it is a major player in the tech world. Apple Inc now receives vital iPad and iPhone components from a factory right here in Austin – further illustrating what countless companies already know, Austin is one of the best places to start or transact business.

Texas Tech Businesses

Apple has historically used manufacturers located in Asia as its source for components, but Reuters recently reported that a 1.6 million square foot factory in Austin now makes their A5 processor – which is a critical component in the popular iPad 2 and iPhone 4S.

The massive factory, owned by the Korean company Samsung Electronics, is dedicated to manufacturing the Apple chips, according to a Reuters’ source familiar with the operation. Reaching full production in early December, the $3.6 billion production line now manufactures the A5 processor.

In a statement to Reuters, a Samsung spokesman said the company has added 1,100 jobs to support their new production line. The spokesman added that the remainder of Samsung’s total 2,400 workers in Austin produces NAND flash memory in another nearby factory.

In total, Samsung has invested about $9 billion in their businesses in Texas according to the Austin Chamber of Commerce. However, Samsung is not alone as Austin is a popular destination for both new business start-ups and relocated businesses. Many tech companies are attracted to Austin because of an ample supply of educated tech employees from the University of Texas, as well as cheaper real estate and lower taxes – making Austin one of the hottest places in the nation for job growth.