The New York Times is reporting today the cost to develop the A4 processor chip that is used in the company’s iPad tablet device, is around $1 billion. This does not include the amount needed for production of the processor itself. From the report:

“At the same time, Apple, Nvidia and Qualcomm are designing their own takes on ARM-based mobile chips that will be made by the contract foundries. Even without the direct investment of a factory, it can cost these companies about $1 billion to create a smartphone chip from scratch.”

Apple was the first company to use a ARM-based chip in a mobile device, such as the iPhone, and other companies like HP and Dell have followed in their footsteps.