Apple Acquires Chip Maker ‘PA Semi’ for $278 million

Apple has confirmed the acquisition of PA Semi of Santa Clara, Ca., a fabless chip making company that creates low-power processors. This acquisition move from Apple is being considered a blow to Intel.

Forbes was the first to broke the news of this $278 million in cash acquisition by Apple. This acquisition also resulted in prediction about usage of acquired chip in iPhones and iPods.

“Apple buys smaller technology companies from time to time, and we generally do not comment on our purposes and plans,” Apple spokesman Steve Dowling told Forbes.

Dan Dobberpuhl founded ‘PA Semi’ in 2003. He was a lead designer of Alpha and StrongArm chips which were developed in 90s by digital equipment. PA semi is best-known for its PWRficient, Power Architecture based, 64-bit multi-core processors that offers three to four times the performance of existing chips for the same energy consumption, the company claims. The company licenses the Power instruction set from IBM, so its chips are compatible with PowerPC chips.

It’s being said that the acquisition is a result of Apple’s dissatisfaction regarding the power specs of the upcoming Intel Atom platform, a solution for mobile devices.

This move, by Apple, could help the co. stay out of the competition because of having control over mobile product’s major components hence, the innovation. innovation.

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