For a cost of $18.2 million, Apple Inc. (NASDAQ:AAPL) is now the legitimate owner of small chip making factory located in San Jose near Samsung Semiconductor. The 70,000-square foot facility that was previously owned by chipmaker Maxim Integrated Products will help Apple test new chips to power its products.
Some of the identifiable things impeded on the facility and that will be very effective include chip manufacturing tools. Apparently, the Samsung Semiconductor is one of the core producers for Apple’s A9 processor.
It is rumoured that Apple which is currently responsible for the designs of the main processor on its iPhones, iPads and Apple Watch devices wants a direct involvement in the creation of its chips. However, this should not be mistaken to mean that the Company is taking up the manufacturing of its chips.
According to the marketing material for the facility, it current size may not be favourable and is only good enough for “prototype, pilot and low-volume manufacturing.” On the other hand, chip companies do not operate on a limited basis especially where testing and tweaking of new chip designs is required.
Additionally, the fab equipment supports the manufacturing of analog and mixed-signal chips which Maxim embraces and which is not good enough to produce Apple’s A9 processors. Nevertheless, to its goal of volume production, it is expected that Apple shall take to upgrading the facility by procuring and fitting in more superior equipment.
In other news, it is alleged that Apple which is famous for giving a large berth to the wisdom of the crowd about its products could be releasing a new iPhone, the 6c that has a smaller screen. The release is expected to take place in March and according to Watch-wise that helps the Company run its affairs, Apple is embracing back its habit of releasing products every year.
The company is known for clinging to its vision till its individual goals are achieved. It is one of the strategies that have helped focus more on innovation rather than repetition. Being reactive has also taken the company to higher heights. For Example, Apple did not immediately incorporate larger screens to its phone design. But when it did there was customer satisfaction which aided Apple in obtaining record-breaking sales for the bigger-screened phones.
Sources: businessinsider, washingtonpost