Apple Acquires Old Chip Fabrication Plant in San Jose for $18.2 Million

Posted by at 9:30 am on December 16, 2015

Apple has acquired a production facility in North San Jose, California, formerly used for the manufacturing of chips, according to a report. The 70,000 square foot facility was acquired from Maxim Integrated Products, itself a chip fabricator, with the $18.2 million purchase making Apple close neighbors of Samsung Semiconductor, which also set up a new campus in the area earlier this year.

The Silicon Valley Business Journal notes the facility is effectively prepared for “prototype, pilot, and low-volume manufacturing” of products, and houses a complete tool line of 197 front-end tools, also forming part of the sale. According to realtor Atreg, this line is apparently capable of producing chips and other items between 600nm and 90nm, with the bulk of production working between 350nm and 180nm.

Apple Buys

The purchase of the facility may include all Apple needs for component or device manufacturing, but its small size indicates it won’t be able to produce at the same levels as Apple can achieve via its current suppliers. Observers suggest it could instead be used for prototyping components and devices instead of small-scale production, giving it some “clean-room space.”

The latest purchase is approximately 2.5 miles away from 86 acres of land Apple has collected together, potentially to construct new facilities. While this land has been touted for use as office space or for industrial purposes, the new acquisition may help bolster any research and development efforts that will take place at that location when construction has completed.

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