Intel has nothing to fear from Apple's acquisition this week of chip designer PA Semi, says Steve Jobs. The Apple CEO has dismissed rumors that the company is looking to distance itself from Intel, a view based primarily on the fact that Intel is also involved in the kind of mobile processor technology PA specializes in. Apple depends heavily on Intel technology for its desktop and notebook computers.

"We have a great partnership with Intel," Jobs insists. "We expect that to continue forever."

The reason Apple actually acquired PA Semi is said to be the designers at the company, who will be used to provide expertise in developing further portable electronics in the vein of the iPod and iPhone. Apple has long had to design custom electronics for its portables, Jobs argues; it is also known that Intel has little to no components inside current Apple handhelds.

Jobs has likewise rejected notions that it could return to IBM's PowerPC format, which PA Semi has based some of its chip designs on. "I wouldn’t lose too much sleep over that," Jobs comments. "We’re very happy with Intel."