Texas made iPhone processors
It's common in the tech world for all of the components and hardware inside gadgets like smartphones and tablets to be sourced for suppliers outside the country. This is because components made in Asia and other countries are often much cheaper than parts that are made in the US. This is why it comes as a surprise that Apple doesn't outsource its A5 processor for the iPhone.
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The A5 processor is built by Samsung in a gigantic plant spanning 1.6 million square feet located in the capital city of Austin, Texas. Austin is a huge technology center and is like the Silicon Valley of the South. That A5 processor is one of the few parts that are sourced inside the US for the iPhone.
The A5 is made on the Samsung non-memory chip production line that went into full production in early December. The plant is new construction and cost $3.6 billion to construct. That massive building is about the span of nine football fields and almost all of the production capacity for chips is for Apple alone.