Apple Confirms Intrinsity Purchase

Following the success of its iPad tablet computer, Apple has announced it has acquired Texas-based chip manufacturer Intrinsity for an undisclosed sum, in a venture that suggests it plans to move into the chip business.

Intrinsity, a fabless semiconductor company, developed the iPad's A4 processor, and specialises in creating fast, energy efficient processors for mobile devices.

The deal came to media attention after the Linked In profiles of Intrinsity staff members, started to change, indicating that the they were now employed by Apple. The company later confirmed it had taken over the chip maker.

The deal will allow Apple to develop processors that are specifically tailored to work with its hardware and software.

Commenting on the acquisition, Tom Halfill, an analyst with the Microprocessor Report, told the New York Times: “The purchase price is like pocket change to Apple, and they get a lot of benefit. This adds another arrow to their quiver.”