According to a Forbes article, Apple has agreed to buy P.A. Semi, a boutique microprocessor design company for $278 million in cash that may create a chips for future iPhone and iPod products.
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.
Supposedly the negotiations was done in Steve Jobs own home. The decision to center the iPhone design around a chip that Apple could own may mark a significant strategic choice by Apple, ensuring Apple can continue to differentiate its flagship phone as a raft of competitors.
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