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Apple Acquires PA Semi for $278 million

by Mark Rowland on Apr 23, 2008 at 05:35 PM

Apple picks up PA Semi with a $278 million price tag

Late Tuesday night, in an interview with Forbes.com, an Apple spokesman shed some light on their recent acquisition of PA Semi, a small PowerPC computer chip manufacturer.  This buy out is a very interesting one indeed, as Apple ditched PA Semi’s PWRficient processors for Intel’s x86 design back in 2005.  Steve Jobs’ reasoning behind the move was although PWRficient was, you guessed it, very energy efficient, it had no where near the processing power Apple was looking for.  This purchase is also a huge blow to Intel, as Apple was one of their biggest customers.  With the recent acquisition, Intel’s recently released Atom chip, which was targeted at the iPhone, may take a back seat to the versatile PWRficient chips.  The adapted PWRficient chips could be used in every from a MacBook Pro to an iPod Nano, and Apple prefers to get everything from the inside- no third parties are best.

The decision to center the iPhone design around a chip that Apple could own marks a significant strategic choice by Apple Chief Executive Steve Jobs, and is aimed at ensuring Apple can continue to differentiate its flagship phone as a raft of competitors flood the market. According to a source affiliated with the chip company, Jobs and Senior Vice President Tony Fadell led the tiny group of executives who spearheaded the acquisition, which included negotiations that took place in Jobs’ home.

Could this acquisition bring on a PowerPC iPhone? Could Apple be bringing back the PowerPC Architecture altogether (highly doubtful)?  Sound off in the comments below with possible motives for the acquisition and the future of Apple products based on the acquisition.

Via [Forbes.com]

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