Apple Snaps Up Chip Design Company

Apple has acquired a designer of sophisticated, low-power computer chips, Forbes reports. Analysts say the move will likely lead to a new kind of chip powering future iPhones and iPods, as well as new Apple designs, helping the company differentiate itself from competition scrambling to keep up. The news comes as a blow to chip maker Intel.

Apple's new acquisition, PA Semi, announced a new processing chip last year which it claims is 300% more efficient than its competitors. Insiders say that Steve Jobs now plans to use the firm's chips exclusively in Apple products. The $238 million price tag is high for an Apple acquisition, but won't make much of a dent in the $19 billion cash holdings Apple announced yesterday. (More Apple stories.)