Apple Develops Fully Custom Processor for New iPad; Where Do Intel, Samsung Stand in Its Plans?

By Jeff Dorsch

While the iPad Mini got most of the attention at last week’s Apple launch event in San Jose, Calif., the company also introduced its full-size fourth-generation iPad, which uses the new dual-core A6X processor. (The iPad Mini has an A5 processor, previously found in the iPad 2, the iPhone 4S, the third-generation iPad, and the fifth-generation iPod Touch.) The A6X is fabricated by Samsung Electronics under contract to Apple.

Image courtesy WikipediaAnand Shimpi of the AnandTech website called the A6X the “first fully custom” processor from Apple, which has been busy assembling a chip design team in recent years, dramatically increased with the 2008 acquisition of P.A. Semi (originally known as Palo Alto Semiconductor). Apple designs its own processors for its highly popular mobile devices, while continuing to use Intel processors for its iMac, Mac, and MacBook computers. There are, however, nearly constant rumors and whispers that Apple will drop the Intel processors from its Mac lines in favor of using its own custom-designed processors. Meanwhile, Intel has been getting its low-power Atom processors into Android-based smartphones and tablet computers, and it would love to pick up the processor business for Apple’s iPads, iPhones, and iPods as well.

“Our job is to ensure our silicon is so compelling, in terms of running the Mac better or being a better iPad device, that as they make those decisions they can’t ignore us,” Intel CEO Paul Otellini said of Apple earlier this month. Intel has also been beefing up its software and services business, providing more of a complete ecosystem in developing electronics.

While the custom-vs.-Intel, make-or-buy decision simmers at Apple headquarters in Cupertino, Calif., the legal issues with Samsung over patents are also leaking into the processor discussions at Apple. Samsung makes the A6X processor and its predecessors, and it is expanding its wafer fabrication facilities in Austin, Texas, to make more logic devices, not the memory chips that are its bread and butter. Apple reportedly wants to gradually shift the silicon foundry production of its custom processors to Taiwan Semiconductor Manufacturing Company, lessening its dependence on Samsung semiconductors.

Whatever transpires in the near future, you can count on Apple maintaining its independent stance, treating its suppliers and manufacturing contractors as a necessary evil.

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