macnn
05/21/2008, 7:20pm, EDT
Wednesday, May 21st
Military investigates PA Semi acquisition
Apple’s recent acquisition of PA Semiconductor is being reviewed by the US Department of Defense, since the latter company’s processor chipsets power many of the military’s portable devices. According to the EETimes, the acquisition left PA Semi’s future lines of processors in an uncertain state, while Apple has said it would provide legacy support for the military. The Department of Defense said the component is an important and unique part of its integrated electronics systems.
“The Department of Defense had extensive discussions with various prime contractors and subcontractors on the matter," said an investigator for the department’s industrial policy unit. "We discussed our findings with the FTC and Apple. The issue is still a matter under discussion.”
When approached for comment, Apple again said little, stating that it does not comment on its intents and purposes for technology acquisitions.
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Investigating? Nope.
Please don't take so much literary license with your titles. The military is reviewing the acquisition, as the article linked to reports. Reviewing is a benign word. Investigating is not.
New source of profits?
I think Apple should use this as an opportunity to make huge profits. I mean the Pentagon has been willing to pay huge prices for hammers, ashtrays and toilet seat in the past, what would critical components to hi-tech hardware be worth? I think this could be huge :>)
So they go elsewhere
Apple bought the company for the engineering talent, not the manufacturing side. If this means they have to go elsewhere for their needs, that's life. Just because you work for gov't agencies doesn't mean you always will. You're a contractor, same as a contractor or sub on a construction job. There are plenty more out there. The question is, who will want to entangle a VERY large portion of their business in serving up the needs of this particular clientele?
Apple might be better off pushing for more X-Serves being deployed since the have an in now with more divisions of the DoD. This was the plan a while ago. I've forgotten why it was cut off. Perhaps someone who remembers can fill us in. Certainly Testy remembers...