Apple / P.A. Semi Deal May Hit Defense-Work Snag

Apple’s (AAPL) planned acquisition of chipmaker P.A. Semi could hit a possible snag: The company’s processors are apparently widely used in military applications, and customers are raising concerns the impact of the pending deal, according to EE Times.

In a story published yesterday, EE Times reported that P.A. Semi’s PWRfiecient processor is designed into programs in every major branch of the armed services - and that Apple is expected to stop making the part.

The EE Times story says that one source is aware of at least 10 defense systems that use the processor, which uses very low power, making them an appealing choice for mobile devices like the iPod and the iPhone.

On Monday, the story reported, P.A. Semi told customers that it was being acquired and could no longer guarantee supplies of its chips. One issue, apparently, is the ability to transfer a third-party license to the technology. EE Times says the license in question is likely involves the use of IBM’s (IBM) PowerPC architecture, which is at the heart of the company’s processor design. (The other obvious question is whether Apple would want to be in the business of providing microprocessors to the military; probably not.)

Comments

[TanToday]

Outsource the chip. Problem solved.

U just won't let up on Apple will U?

[2bitRick]

Well said Tan.

Once a cynic always a cynic.

[raceluver]

your information is completely WRONG. The chip is high power consumption!!!! In its present form it is not ideally suitable for iphone application. However, apple disclosed that modifications are possible but may not be used in iphone before a couple of years. The purchase of P.A semi is obviously for other purposes that apple is not disclosing..... have you thought about a gaming acquistion that is in the works for apple where this chip could be of use? Think about it.....!

[raceluver]

The chip is dual core super fast ideal for handheld gaming gadgets. What is missing from apple's lineup to close the loop of being the super power in media, etc. ? Does Nintendo sound familiar?