DOD Reviewing Apple's PA Semi Acquisition

Posted by: Arik Hesseldahl on May 21, 2008

The U.S. Department of Defense is reviewing Apple’s acquisition of chipmaker PA Semi, according to EETimes A particular chip PA Semi-made chip, known as the 1682, PA Semi has designed is being used in several defense projects. A DOD investigator reviewing the deal has described the component as “very important and unique.”

Apple hasn’t yet commented on the deal, but anonymous sources cited in the story say that the chip has been designed into several major defense projects touch every service branch of the military.

Apple’s motivation in making this $278 million acquisition is understood to based less on PA Semi’s products and more on its design team. Apple has been quietly reassuring current PA Semi customers that it will continue to support the current line of chips on a legacy basis. The chips are said to be used in a variety of mine-sweeping, radar and signal intelligence. That last part is probably the one that has the DOD concerned the most.

The chips are based on the PowerPC architecture, under a license arrangement with IBM. PowerPC chips, you’ll recall, used to be central to the Mac, until the big switch to Intel chips in 2006.

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