Apple has agreed to buy a boutique microprocessor company named PA Semi for a rumored pricetag of $278 million. PA Semi is known for its low-power, sophisticated chipsets, which according to Forbes, could mean big things for the iPhone and future iPods. The deal is a particular slap in the face for Intel, which has been courting Apple for some time. PA Semi has 150 employees and counts NEC as one of its key customers. Apple is planning to supply existing customers for the foreseeable future but some insiders told Forbes the plan is to bring PA Semi's wares exclusively in-house at some point.

For more on the deal:
- read this article from Forbes

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