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Report: Apple wants PA Semi's engineers, not its chips

EETimes says PA Semi is telling customers that it no longer plans to produce PWRficient chips after being acquired by Apple, which wants just its intellectual property and engineering talent.

Tom Krazit Former Staff writer, CNET News
Tom Krazit writes about the ever-expanding world of Google, as the most prominent company on the Internet defends its search juggernaut while expanding into nearly anything it thinks possible. He has previously written about Apple, the traditional PC industry, and chip companies. E-mail Tom.
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Tom Krazit

PA Semi, acquired by Apple earlier this week, has been telling its former customers that Apple has no interest in its products, according to a report.

EETimes is reporting that PA Semi started telling its customers in the military hardware industry that it was about to be acquired by a company that wanted only its intellectual property and employees.

On Tuesday night, we learned that Apple was that company via a Forbes report that said the Mac maker wanted to put PA Semi's PWRficient processors in its iPhone.

The PWRficient processors are used in military systems built by defense contractors such as Raytheon and Lockheed Martin, companies reportedly annoyed by the possibility that the PWRficient processor might be coming to a quick end. According to EETimes, PA Semi told those contractors that after the acquisition, supply of the chips could not be guaranteed.

And that, apparently, could cause problems for Apple. The report says those contractors are going to complain about the acquisition to the U.S. Department of Defense.

I can't imagine that the deal would be overturned just because of a few complaints to the military, but Apple might be forced to figure out a way to transfer that portion of PA Semi's assets to another chipmaker that could satisfy Uncle Sam's need for the chips.