Apple buys embedded chipmaker for $278 million in cash

By Ed Oswald | Published April 23, 2008, 12:00 PM

In response to media inquiries, Apple disclosed early Wednesday that it had purchased embedded chipmaker P.A. Semi, whose chips may end up in the Cupertino company's devices.

P.A. Semi was founded in 2003 by a lead designer for the Alpha and StrongARM processors. It currently employs about 150 and focuses on low-power chips that can be used in portable devices.

At first glance, the tie-up may seem a little strange, especially considering Apple's closely partnership with Intel. However, Intel has been having troubles with its new Atom processors, which may have led the company to make a move.

Forbes reports that talks between the two companies only began in the last few weeks, and were kept hush-hush. Jobs even used his home for negotiations.

Intel's new Atom processors, intended for use in ultra-portables and mobile devices, seem to be plagued by performance issues compared to ARM processors. Additionally, Atom chips will cost far more, and are not as power efficient, which is vital to the success of any mobile chip where power consumption directly affects battery life.

Neither P.A. Semi nor Apple have provided any further details on the deal, although some may come as part of Apple's quarterly conference call later this afternoon.

The move is somewhat surprising, considering talk among insiders seemed to indicate Intel was pushing hard for Apple to adopt Atom for its next-generation iPhone and iPod devices, as well as any other ultra-portables the company might have up its sleeve.

Comments

View comments by with a score of at least

There is no indication that Apple would be "dumping Intel".

Simply augmenting sourcing for various nich products is not uncommon nor unusual.

The only question would be if the returns on the investment would be sufficient to justify purchasing such a firm as opposed to outsourcing the components.

At this point I would question if this degree of vertical integration is warranted given that a proven niche platform has not yet been developed.

...TransMeta comes to mind...

Score: 0

|

Good point. But it seems to me that Apple tendency has been to want to control the hardware end as well as the software end of their products (and I don't see that as a negative.) so the investment makes sense if they want that control and moving forward, the consumer will pay for the investment and Apple will have control over another piece of it's hardware.

Smart move I'd say.

Also, I too think that Apple won't dump Intel because they need Intel for their other products and Intel needs their money.

Score: 0

|

dumping intel.. will Apple start to have the same fall out as it did with motorola...

Score: 0

|

W00 to ARM processors.

That is all.

Score: 0

|

Microsoft's Ray Ozzie: 'Nobody's going to be 100% open'

The mobile apps ecosystems of the world may converge over time, led by apps being ported over across platforms, according to the Chief Software Architect.

Will Firefox beat IE9 to Direct2D rendering?

Just days after Microsoft executives gave conference attendees a peek at a new rendering technology, a Mozilla contributor revealed he's working on the same thing.

Where there's smoke: Apple warranty stance raises troubling questions

Carmi Levy | Wide Angle Zoom: Smoking can be dangerous not only for your lungs, it appears, but for your Apple hardware warranty.

The fallacy of Facebook privacy

Carmi Levy | Wide Angle Zoom: If an insurance company learns something interesting about its client through the Internet, is that snooping?

Microsoft 'worked with Apple' for Silverlight on iPhone, says Goldfarb

By not making such a big deal out of trying to stream video to the iPhone, Microsoft got a big deal out of it, revealed the Silverlight product manager.

Clicker.com cuts through the Web video chaos

In a world where homemade video and Hollywood movies travel the same pipeline, it's good to have a real search engine to cut through the clutter.

A case study in improving software: What Office 2010 can learn from Notion 3

A music composition product gambles with a complete overhaul, in an effort to make headway against two well-known competitors in a tough market.

Kindle 2 update adds battery life, native PDF reader

Amazon has pushed out an update to the Kindle 2 e-reader that lengthens battery life and adds a native PDF viewer.

Safari on iPhone gets competition from a $1 browser app

Apple likes to say it gives iPhone users a full browsing experience, but a new competitor tries to incorporate more desktop browser features.

Action Replay maker sues Microsoft for Xbox 360 'predatory technological barriers'

Third-party video game accessory maker Datel has filed an antitrust lawsuit against Microsoft over the Xbox 360's recent Dashboard update.