Apple Acquired Another Chip Maker Intrinsity

Yesterday Apple closed a deal of acquiring Intrisity, a small company in Austin, Texas, that specializes on mobile computer chips producing.

This is a second time for the last two years when Apple buys a small chip company to have the facilities for making fast and power efficient processors. In 2008 Apple purchased P.A. Semi for $278 million, but with the lapse of time many chip maker employees had left company because of inadequate compensation (by the way, some of them are now in Agnilux, another company that was recently acquired by Google).

Well-known chip analyst Tom R. Halfhill has information from his sources that Apple paid $121 million for Intrinsity, but company’s representative Steve Dowling didn't comment on this information.

Such a deal isn't expensive for Apple at all, thinks Tom Halfhill:

“The purchase price is like pocket change to Apple, and they get a lot of benefit”.

It is widely speculated that iPad's A4 chip is based on Intrinsity technology that improved its processing power from 650 MHz to 1 GHz without increasing the battery consumption. With acquiring this chip making company Apple will be able to increase that 350 MHz by itself. Moreover, the company seems to be looking forward for creating its own version of ARM chip. Some other companies like Qualcomm, Marvell and Nvidia had the same experience and spent millions of dollars to gain a satisfactory result.

It is interesting that rumors about this deal started when some people saw that a significant number of Intrinsity employees changed their employer section to Apple in LinkedIn.

Also Apple's desire to create its own mobile chip contradicts to its strategy of purchasing Intel chips for computers.