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P.A. Semi Acquisition for iPod and iPhone Chips

In the previously referenced New York Times article, Steve Jobs revealed that Apple's acquisition of P.A. Semi will be directed at the iPod and iPhone specifically

PA Semi is going to do system-on-chips for iPhones and iPods,

Apple acquired P.A. Semi in late April, and reports had suggested that Apple was not interested in any of their current technology. This generated some speculation about what specific project they had in mind when acquiring the company.