DoD may push back on Apple's P.A. Semi bid; PowerPC variant designed into many military systems
(04/23/2008 2:48 PM EDT)
SAN JOSE, Calif. — Apple Inc. may have to face the ire of the U.S. Department of Defense following its planned acquisition of P.A. Semi Inc. The startup's PWRficient processor is designed into DoD programs in every major branch of the armed services, said one P.A. Semi customer who expects Apple will end production of the parts.
"We've had customers saying they are going to the DoD on this one," said a source in one of the several companies making embedded computer boards with the processor.
The source said he is aware of more than 10 defense systems using the PWRficient CPU, one of which recently forecasted it will use 70,000 of the chips over the next ten years. The board company alone forecast it would sell $100 million in products based on P.A. Semi chips over the next four years. Users include defense giants such as Lockheed Martin and Raytheon, the source said.
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