Report: Apple's A5 Chip Being Manufactured in Austin

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Apple's A5 microprocessor, which powers the iPhone 4S and iPad 2, is being made at a $3.6 billion Samsung facility in North Austin, according to a report by Reuters.

Samsung has added about 1,100 jobs to support the new non-memory chip production in the factory, which produces 40,000 silicon wafers every month, a Samsung spokeswoman said.

The report, if confirmed, comes as a surprise because Apple is known mainly for relying on low-cost manufacturers in East Asia.

Both Apple and Samsung declined to comment to Reuters, but the news agency says publicly available satellite imagery shows the facility, which is 1.6 million square foot or the size of nine football fields.