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Apple shocks technology world, buys P.A. Semi CPU designers

Apple astounded just about everyone today by buying PA Semi for $278 million. P.A. Semi is a fabless chip designer that specializes in super low power PowerPC processors. The founder of P.A. Semi, Dan Dobberpuhl, also has a history of designing StrongARM chips - the kind currently in use in the iPod Touch and iPhone - from his former work at DEC.

StrongARM, which was sold to Intel and became the foundation for the XScale family, was one of the first high-performance energy-efficient processors. Intel sold its XScale business to Marvell for $600m in June of 2006.

Whether Apple is after the StrongARM expertise or PowerPC processors, don't look for these chips to go into traditional desktops. These chips are more likely to hit high end iPhones, iPods and tablet devices in the coming months and years.

P.A. Semi was in the running as Apple's processor of choice three years ago when Apple was making a decsion between PowerPCs from P.A. Semi and IBM or Intel x86. Apple obviously chose Intel but PA did offer a compelling choice at the time - but wasn't perhaps tested enough.

The P.A. Semi purchase leaves Intel's Atom Processor out of the mix as well. Many rumor websites had incorrectly predicted that Atom was the next generation Apple ultra-portable chip.

Intel certainly isn't out of the loop altogether, however. They are still much stronger in the high end desktop and laptop device market.

This exciting development means Apple is probably going down the two platform road. Perhaps that is why the WWDC event fliers had two diverging bridges?

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What People Are Saying

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Rated +19
349 Votes

The photo interpretation

The photo interpretation depends upon one's viewpoint.
Does the bridge diverge, converge or neither (parallel) ?

There is considerable value in owning such a chip designer ($278M) and Apple still has over $18M left.

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Rated -3
393 Votes

Why not have P.A. Semi

Why not have P.A. Semi create a whole new chip that implements an ARM instruction set?

How different could the PowerPC and ARM architectures be, under the hood, given that they're both 32 bit RISC architectures.

Change the microcode and voila, new istruction set implemented!

Rate this
Rated -9
423 Votes

Apple keeping hardware & OS X profits

Apple just is protecting their flagship OS X operating system.

In their past protected their computer hardware as the toolbox was ROM chips used on the motherboard with PowerPC chip. Now with Intel chips and the hacintosh project, the EFI chip protection on the board has been cracked. So the need to build a boutique chip to protect OS X is still there.

Apple can still be able to run windows or Linux, but future models of PC Clones maybe foiled in being able to run OS X, because of apple buying P.A. Semi CPU

Steve Jobs is smart. Make their machines run everyone elses software, but keep OS X more locked up, protected and elegant. Stable small platform that runs fast, uses less power and cant be copied or compared, hence higher hardware margins kept in tact using proprietary chips on motherboard with Intel or PPC used.

Cheap parts with a jewel of protection to keep hardware margins on high. OS X protected from the bloat Vista has received, as Apple firmly controls the hardware and profits from such hardware.

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Rated -11
369 Votes

One thing to remember when

One thing to remember when theorizing that Apple would add a P.A. Semi CPU for the purpose of locking in OS X:

Updates to OS X generally support hardware going back at least 5 years, so even if they added such a chip tomorrow they couldn't require it sooner without breaking update compatibility with the installed base too early.

I think it is more likely that Apple sees other applications for the talent and CPUs. Perhaps they want a CPU for Apple TV or some new device that's powerful enough for h.264 recompression while being lower power and relatively cheap. Recompression support is something that would be beneficial for a PVR. A chip for accelerating h.264 in consumer Macs might be useful too.

Having more chip design expertise in house could potentially help Apple build something they've conceived, or enhance the performance of something they're already working with. One of Apples' strengths is their attention to detail in every level of a product. To optimize every aspect of a design they need the option move forward at the chip level when they feel they could go beyond limitations of existing components. I'm sure they have good people already, but they're a growing company and likely could use more of the best.

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Rated -18
426 Votes

Why the Dell not?!

Who else would they buy? The original PA Semi plan was to sell CPUs to Apple. Here is Don Dobberpuhl at the Power.org Venture Conference in December 2005 (read the slide).

Apple's sales on computers were up for the quarter, especially the new thin one. iPod sales continue to be brisk. The iPhone is still doing well. Why wouldn't Apple want to use this design team to create a new iPod/iPhone CPU and better performing computers? AppleTV could use a new twist. It makes sense to us. We bet the venture folks were very happy to get their money back as the traditional semiconductor silicon sales model has changed. HP and Dell will continue to lose market share to Apple.

BTW, don't expect Apple to join Power.org or flock back to the PowerPC fold. The Power Community won't get any more of a boost from this than what it has from the game console business.

Next up?

Cisco makes an offer for Freescale or at least part of it...:-)

R&B :-)

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Rated +16
398 Votes

i wonder if apple are

i wonder if apple are thinking of switching back to powerpc

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Rated -12
412 Votes

Not for their real

Not for their real computers. However, for their iPhone and such its a really interesting to switch to these processors.

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Rated -10
396 Votes

I doubt it

Apple has a good relationship with Intel and it's gotten them where they want to go ... and will continue to do so. This really could be about buying the "expertise" of this company, as they did when they bought the "expertise" of a little MP3 player called SoundJam whose creators put together iTunes.
We know OS X can run on PPC and Intel and if the bridges image is related to this new purchase then it demonstrates that the hardware (bridge) you use isn't as important as destination.
This move is about being able to control the power/performance and cost of a big component in their iPhone/iPod Touch ... maybe others too.

Rate this
Rated -11
407 Votes

uhuh...

This would be the equivalent of poisoning the cappuccino at Caffe Macs.

IT AIN'T GONNA HAPPEN.

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Rated +3
349 Votes

No. That's the second

No. That's the second dumbest thing I've heard today.