Apple agrees to acquire P.A. Semi (embedded-computing chips)
Companies in Relationship
, P.A. Semi
Initial Announcement Date:
Consideration: $278 million in cash (Source: Forbes)
Apple agrees to acquire P.A. Semi, a fabless semiconductor company that develops processors for the high-performance embedded-computing markets. The company's low-power chips might be utilized in the ongoing development of the iPhone and iPod product lines. Bessemer Venture Partners, Gold Hill Capital Management, Highland Capital Partners, Texas Instruments, and Venrock will exit their investment in P.A. Semi as a result of this deal.
In addition to developing chips to reduce the power consumption of its iPhone and iPod touch products, Apple might well build graphics circuitry to enable its devices play more realistic games and high-definition videos.
Notorious for its secrecy, Apple's move into semiconductors also reflects its desire to keep its technology plans closer to its chest. Apple management has expressed concern that outside chip partners might be too generous in sharing information that Apple considers proprietary.
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