Apple is to use Samsung to produce A5 mobile CPU.

Relationships between corporations are difficult to understand and very unlike these between individuals.

Apple has lawsuits against Samsung that prevents selling Galaxy line devices in Europe yet they are building a $3.6 billion factory in Texas to produce Apple's flagship mobile processor A5.

Samsung is also a leader in cutting-edge mobile display manufacturing and almost all other aspects of technology which begs the question: if they really wanted they could always have a better Android mobile devices out before Apples iPhone and iPad updates. Of course they would have to put some originality in their design and not just copy Apple as they did with Galaxy Tab.

Overall the $8 billion dealings between these to giants remind me of fast forwarded clash between tectonics plates with a lot of tremors, I just don't know on which side the beautiful mountains will raise. I think it is up to Samsumg's product team, they need to infuse some creativity and sense of design in them. Looking at the latest and greatest Galaxy Nexus I was very disappointed and I would actually consider Motorola Bionic instead.
This reminds me of Apple and Microsoft love-hate relationship that allowed Microsoft to get of the ground, then dominate the world and then to give up the title of biggest and most profitable corporation to Apple in recent years.

~ Uki

Uki's Google Java Technology blog