Apple strikes deal with P.A. Semi

Apple has acquired microprocessor design company PA Semi, which could offer low-power chips to be used for the iPhone and iPod.

Apple Inc has struck a deal to buy a boutique microprocessor design company called P.A. Semi, according to a report on the website of business magazine Forbes.

"Apple buys smaller technology companies from time to time, and we generally do not comment on our purposes and plans," said Apple spokesman Steve Dowling. Forbes said the deal would consist of a $278 million cash transaction.

P.A. Semi describes itself as a fabless semiconductor company delivering processors for the high-performance embedded-computing markets.

The low-power chips could be used for further developments of Apple's iPhone and iPod products.

Forbes quoted Apple spokesman Steve Dowling as confirming the acquisition, but declining to comment on its value.

Citing a person familiar with the deal, Forbes said the transaction was valued at $278 million in cash.

Apple is due to to announce its quarterly earnings on Wednesday.