The purpose of acquiring PA Semi was the creation of chips for iPhones and iPods, Apple CEO Steve Jobs has admitted. "PA Semi is going to do system-on-chips for iPhones and iPods," Jobs tells the New York Times. Although Apple has dismissed rumors that it is unhappy with Intel, or that it is planning to resurrect some PowerPC technology, it has been unclear what PA Semi was needed for other than designing chips for portable electronics.

Other rumors have hinted that Apple is developing a tablet-like device measuring 4 to 7 inches, based off the same technology in the iPhone and the iPod touch.

Apple has traditionally handled much of its own chip design, but is dependent on other companies for many individual components, including everything from processors to broadband receivers. It is not known whether PA Semi will create any original components or merely stick to general architecture.