The Wall Street Journal explores some of the detail behind a number of recent moves Apple has made. It all started last April when it was revealed that Apple had acquired custom chip design company P.A. Semi. Recently Apple has started hiring key figures from the chip industry, including Mark Papermaster.
WSJ cites people familiar with Apple's plans saying that the acquisition of assets and staff could aid Apple in designing and manufacturing "chips to sharply reduce the power consumption of its hit iPhone and iPod touch devices, and possibly add graphics circuitry to help its hardware play realistic game software and high-definition videos".
Additionally the move would allow Apple to beat rivals to the market with new features and aid Apple in keeping details under the hood without external chip suppliers giving away key secrets.
People familiar with the situation say Mr. Jobs told P.A. Semi engineers last April that he wanted to develop chips internally and didn't want knowledge about the technology to leave Apple. Mr. Jobs is on medical leave and was unavailable for comment.
WSJ also points out that while most industry competitors to Apple are outsourcing manufacturing and laying off staff Apple is bringing it in-house despite the financial recession.