Apple's latest chip gamble

By Tom Krazit, CNET News.com
Thursday, April 24 2008 12:52 PM

If Apple follows through and uses a chip designed by its latest acquisition, P.A. Semi, in a future product, the company will have made major bets on Power, x86, ARM, and Power again in just this decade. What, no love for SPARC or MIPS?

A P.A. Semi representative on Wednesday confirmed news that Apple has paid US$278 million for the low-power chip designer. Led by prominent chip designer Don Dobberpuhl, the two-and-a-half-year-old company makes chips for embedded devices based on IBM's Power instruction set.

So what might Apple want with P.A. Semi? Forbes reported that Apple plans to put its chips inside the iPhone, but several possibilities are being considered, as the industry tries to digest this piece of news.

Apple's iPhone group almost assuredly does not want P.A. Semi's current product. The PWRficient PA6T-1682M is the only product listed on P.A. Semi's Web page. It is a dual-core 64-bit chip designed for high-performance computing and embedded applications--things like server appliances or sophisticated telecommunications gear.

It is a pretty powerful chip that consumes between 5 watts and 13 watts of power, in most situations. However, while that may be ideal for a server, networking switch, or even a MacBook, it is way too much for a handheld device like the iPhone or the iPod Touch. The Samsung chip inside the iPhone is based on a core designed by ARM that consumes about 279 milliwatts running flat-out at 620MHz. Apple uses a slightly slower version.

Even Intel's Atom chip, which is going into so-called mobile Internet devices, consumes less power than the PA6T-1682M. To date, no other company appears to be developing a smartphone based on this generation of Atom.

A commenter at The Register, picked up by Slashdot, suggested that Apple could have a game console in mind. That would be a perfect application for this kind of chip, though I'm not sure that if Apple has the desire to get into game consoles, despite filing a patent for that type of device. Maybe Apple TV 3.0 could use a performance boost, which Apple would certainly get, switching to the P.A. chip and dropping an older version of Intel's Pentium M processor.

Apple could be planning to release a mobile Internet device of its own based on the chip. Again, power consumption concerns raise a red flag here, as you'd have to design any handheld device to accommodate the worst-case scenario power consumption of P.A.'s chip: 25 watts. You would really need something bigger to effectively dissipate that much heat, as it would require a cooling fan.

Another interesting possibility could be that Apple wants to get more involved in the server market. P.A. Semi initially wanted to get its chips inside Apple's notebooks, and was apparently in discussions with Apple right up until its decision to embrace Intel's notebook processors in 2005. After that defeat, P.A. Semi pitched its chip as ideal for clusters of low-power servers.

The most likely scenario is that Apple wants a future P.A. Semi product for a handheld, server, notebook, or something in between. Dobberpuhl and his team of veteran chip designers are some of the brightest minds in the industry, with an extensive track record. The chipmaker also brings along a low-power patent portfolio that would be attractive to any company focused on low-power computers.

There is an extensive list of applications on Apple's Web site that were created with the Universal binaries. That means it would be relatively painless for Apple and its partners to switch back to the Power architecture for anything that runs on the Mac, since Universal software would run natively on P.A. Semi's chips.

Could Apple do the same for the iPhone, at some point down the line, when P.A. Semi is able to get power consumption down to milliwatt levels? We learned during the iPhone SDK event in March that the iPhone's OS X is almost exactly the same thing under the hood as Mac OS X, which would suggest that it also was developed with Universal binaries in mind that could run natively on ARM and other instruction sets, such as x86 or Power. That's not at all certain, but it's an interesting possibility.

That would mean that Apple has figured out a way to develop its software as to take advantage of whatever the best chip on the market is at a given time, without having to worry about porting concerns. Don't like Intel's road map? Switch to P.A. Semi. Don't like P.A. Semi's next big idea? Switch back to Samsung. That might be a stretch, but if true, it would send a shudder down the spine of many a chip industry executive.

Finally, there is the possibility that Apple is working on some new type of handheld computer that needs something different than what the ARM community or Intel has in mind two or three years down the road. I can't imagine that Apple would buy Dobberpuhl's company without giving that team some kind of project.

Don't count on much official word from either Apple or P.A. Semi just yet. Apple spokesman Steve Dowling told Forbes that the company doesn't comment on its plans for acquired companies, and the P.A. Semi representative said she couldn't even discuss whether the company's engineers would be moving across Silicon Valley from Santa Clara to Cupertino.

Late last year, investors had wondered what Apple was planning to do with all its cash. Now they have some idea.

This article was originally a blog post on CNET News.com.


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