Apple will use P.A. Semi to make chips for iPhone and iPod

According to Steve Jobs, the recent acquisition of P.A. Semi will serve to benefit the iPhone and the iPod. Apparently they will use the P.A. Semi chips to phase out the use if Infineon chips in their devices. Having the chip making going on in house, could reduce the cost of their devices quite a bit. More likely though, prices will be the same and Apple will see increased profit margin.

This is good news for Apple, but not so good for Intel. It was expected in some circles Apple would use a ultra low power chip from Intel in their devices, a CPU such as Intel's new Atom chip. It is not known when we will start seeing P.A. Semi chips in Apple devices, but they are probably hard at work by now, considering the deal went down in April.