Cirrus Logic, a component manufacturer that supplies analog chips for audio applications in Apple’s iPad and iPhone, are reporting manufacturing issues with a new component presumably slated for its biggest customer. In May 2010, Seeking Alpha reported that the bulk of Cirrus Logic’s revenue was derived from iPad and iPhone sales, followed by September rumors that the company could be acquired by Apple. This morning, the Wall Street Journal is reporting that a new component is having initial manufacturing problems off the line:

Cirrus late Thursday said it had determined an earlier test for a particular function of a new audio product–which analysts assume is for Apple–was insufficient to guarantee that all products met a certain standard. After a more rigorous test was developed, Cirrus found fewer working chips than previously expected, with that yield loss rising as volumes increased.

Capstone Investments analyst Jeff Schreiner said the yield issue was exacerbated by the fact the device was for Apple, which ramps new products very quickly and at high volumes.

While Cirrus has told reporters that they’ve developed a fix to mend product problems, Apple shares dropped $2 to $330.24.

[Wall Street Journal via 9 to 5 Mac]

Image via: chipworks

As noted by 9to5mac, a local Brazilian report claims Apple has filed documents at the Jucesp (Junta Comercial do Estado de São Paulo) to begin assembling “products” in Brazil. It is unclear what kind of products Apple is willing to assemble in the country, but the report goes on to specify that a previous rumor suggested governor of São Paulo Geraldo Alckmin would announce Apple’s new factory in Brazil on April 22nd. UOL Technologia also claims other tidbits in the past weeks indicated Apple was shipping containers full of components from Asia to Brazil; furthermore, the city of Jundiaí was rumored to be among the candidates selected by Foxconn to build a new facility in Brazil – although this might not be strictly related with Apple’s plans.

From a rough Google Translation of the original report, it appears there might also be tax exemptions involved in the process:

With the installation of a factory in Brazil, Apple may benefit from tax exemptions offered by the government Rousseff for tablets, which will reach 9.25% for PIS and when the classification of the device to switch to “computer”. The arrival of Apple to Brazil could accelerate the adoption of this exemption - and would benefit from other manufacturers such as Samsung, which already produces in the country Galaxy Tab.

There is still no information whether Apple will use its own plant or at Foxconn, assembly line installed in Jundiaí.

The documents filed at the Jucesp can be viewed here. UOL Technologia says it’s also unclear whether Apple will deploy its own facility or use a Foxconn one built in Brazil, but it seems like the main intention is that of moving some parts of Apple’s production line out of China and all the way down to South America. On a side note, back in November we reported Eike Batista – Brazilian billionaire and the eighth richest person in the world – wanted to invest in a $1.6 billion construction project to bring an Apple facility to Brazil to “create job positions, generate revenue and lower costs of Apple products for Brazilian customers.”

Update: MacMagazine [Google Translation] reports a “contact at Apple Brazil” informed them the updated Jucesp records weren’t created by Apple. Apparently this is the only official Apple Jucesp record in Brazil, and the new one was probably created by “a squatter.” Speculation about the facility still persists, but Apple is denying the rumors.

[Thanks Newton Mota]