While Apple and Samsung battle it out in the courts over the design of the iPad compared to the Galaxy Tab, and vie for top spot in the smartphone market, the US company is relying on its rival for the essential processor in its tablet.
The A5 processor – used in the iPhone 4S and iPad 2 – is now made in a sprawling factory in Austin, Texas, which is owned by Korean electronics giant Samsung, according to people familiar with the operation.
One of the few major components to be sourced from within the US, the A5 processor is built by Samsung in a newly constructed $3.6bn non-memory chip production line that reached full production in early December.
