Samsung Now Has Apple As Its Neighbor In San Jose

Apple has acquired a new space in San Jose neighboring its arch rival Samsung

Apple Inc. the tech behemoth makes strides that make it outshine. The company recently made an acquisition where they have now acquired a semiconductor plant in the San Jose vicinity of Silicon Valley as cited by the reports published in the Business Journal. This year is seen as a massive breakthrough with numerous expansions for Apple. The reports claimed that the company has paid almost $18.2 million the previous week to acquire the land that covers an area of 70,000 square foot.

The building initially catered as a fabrication plant for semiconductors (chip fab) that were used by Maxim Integrated Products. The estate was placed on sale when the company put an end to its consumer electronics business. The building has minimal space and is not appropriate for the mass production of semiconductors. However, it is good enough to enable the production on a low volume scale, pilot testing or making the prototypes for the new chips.

The thing that is quite amusing is that the location is right next to the semiconductor facility of Samsung Electronics. In the start of 2015, Samsung inaugurated the plant which is located at Tasman drive and North First Street. So now both the tech giants are now each other’s neighbor, where both are competing with one another in the tablet and smart phone market. Moreover, Samsung is also the major supplier for AAPL. Both the companies are also dealing with various lawsuits over patents.

Samsung reportedly has to pay a massive amount worth $548 million as compensation to the damages they have caused on the Apple iPhone maker. An appeal is also planned to be filed by the company since they believe that the patent laws are extremely outdated.

At this point of time one cannot really predict how Apple will make use of this plant. Since the building is fairly small, it cannot really be used as a space for the manufacturing of processors. Many analysts perceive that the location will be used for development and research so that they can come up with strong prototypes for chipsets that will be used in the coming Apple products. Moreover, the design for processors can then be given to third party manufacturers to initiate production.

The company is now extremely devoted to streamline its focus on in house development to improve technology since major investment related firms forecast a downfall in the shipment of iPhones in the times to come. This is also another catalyst that promotes such causes.