Apple Buys Microprocessor Chip Firm; Possible Use With iPhone and iPods

Rafat Ali
Wednesday, April 23, 2008; 2:00 AM

Apple (NSDQ: AAPL) has finally done something with its cash, although spending a tiny part of it, after much speculation of what it would do: it has bought a boutique microprocessor design company called PA Semi. The price, not disclosed, but the story says around $278 million in cash.

PA Semi, which is known for its design of sophisticated, low-power chips, could spell a new future for Apple's flagship iPhone, and possibly iPod products as well, according to this Forbes story. The 150-person chip company was founded in 2003. Apple is slated to announced its Q108 earnings tomorrow.

On this, Apple's choice is a blow for Intel (NSDQ: INTC), which has been trying to convince Apple to rely on Intel's chips, including its latest low-power line up, called Atom, which was supposed to be used for handheld devices.

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