Apple buys chip designer

[David Farber <dave () farber net>]

________________________________________
From: Kurt Albershardt [kurt () nv net]
Sent: Wednesday, April 23, 2008 3:50 PM
To: David Farber
Subject: Apple buys chip designer

Interesting move...
<http://www.forbes.com/technology/2008/04/23/apple-buys-pasemi-tech-ebiz-cz_eb_0422apple.html>

Erika Brown, Elizabeth Corcoran and Brian Caulfield 04.23.08, 12:15 AM ET

BURLINGAME, CALIF. -

Late Tuesday, in response to questions from Forbes.com, an Apple spokesman said Apple has agreed to buy a boutique 
microprocessor design company called PA Semi. The company, 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.

The 150-person chip company, P.A. Semi, was founded in 2003 by Dan Dobberpuhl, who was a lead designer for the 
well-regarded Alpha and StrongARM microprocessors developed by Digital Equipment in the 1990s.

"Apple buys smaller technology companies from time to time, and we generally do not comment on our purposes and plans," 
said Apple spokesman Steve Dowling. He declined to comment on the value of the deal, which a person familiar with the 
deal suggested was done for $278 million in cash. Apple is due to announce its quarterly earnings Wednesday.

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.

Apple's choice is a blow for chip maker Intel, which has been trying to convince Cupertino, Calif.-based Apple to rely 
on Intel's chips--particularly its latest low-power line up, called Atom.

...




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