Apple Buys Chip Maker

The New York Times is reporting that Apple has purchased Intrinsity. They build processors used in mobile phones and other devices, and the rumor has been that they helped out Apple with the A4 chip in the iPad. From the article:

Ever since Steven P. Jobs, Apple’s chief executive, unveiled the iPad in February, analysts in the technology industry have been obsessed with its innards. Chip analysts, in particular, zeroed in on the A4 chip that Apple credited with giving the iPad better battery life and more speed than similar devices.

The widespread speculation has been that the A4 chip relied on technology from Intrinsity to get its added processing power.

I speculated back in January that Apple was going to start building their own chips, and this is certainly a great way to start. Once the deal is all done, Apple’s new chip maker will continue to put out high-end chips for the iPhone and iPad, making things faster than ever. My thought is that Apple is going to buy another chip maker in the next few years, one more aimed at the Mac lineup. They’ve got the money, so it’s not out of the realm of possibility.

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