Apple's Purchase of PA Semi under Review by DoD
From MacObserver
Apple's purchase of semiconductor company PA Semi is under review by the U.S. Department of Defense (DoD). PA Semi makes a key chip used in some defense systems, and to maintain that supply, and Apple could end up becoming a defense contractor.
"The [PA Semi] 1682 is a very important and unique component required to meet performance requirements on a wide variety of defense applications," said an investigator who works for the Deputy Under Secretary of Defense, according to EETimes.
The continuity of defense related parts appears to be the source of concern.
Apple first reported the purchase in April, but an Apple spokesperson, Steve Dowling, declined to comment on Apple's purpose or plans. Some observers think that Apple is after the low power designs that PA Semi has developed. Others believe that Apple wants to also put subtle pricing pressure on Intel with respect to future Mobile Internet Device (MID) CPUs.
These low power chips are widely used in military systems, and a potential disruption of supply for a new Apple commercial venture is being discussed with Apple by the DoD. Apple may have to make concessions about the continued supply of the chips, and that would put Apple in the interesting business of being a defense contractor.
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FUD
Unless the IG gets a good call of fraud, apple will be fine. I find it hilarious that the observe can't even name which part of the DOD is looking at the deal.
From EE (which MO links):
The [PA Semi] 1682 is a very important and unique component required to meet performance requirements on a wide variety of defense applications," said an investigator working in the industrial policy unit for the Deputy Under Secretary of Defense.
This indicates that the IG ain't anywhere close to taking this case. Apple is said to be interested in their intellectual property, and their engineers.
Well boys and girls, PA could sell of the technology in question to any DD contractor, no big deal.
I'm sure that there is a contract cancellation clause if the company is bought. Besides, HP is in the news at DOD. They're buying EDS, which uses Dell, in the Navy/Marine Corps Intranet/Internet. Wonder how long it will take to examine that one......