As the tech world ogles at the increases of IBM and Intel, something is happening quietly but swiftly in nearby Cupertino, headquarters of Apple, Inc. As the Wall Street Journal reports, Apple is ramping up a new side to its business—designing its own semiconductor chips

Via LinkedIn and other recruiting efforts, Apple has been hiring semiconductor professionals. By now, they have assembled a team capable of designing, developing, engineering, and producing exclusively Apple chips. Obviously, thousands of applicants have submitted resumes for the jobs. Few have been selected. Apple is targeting high-potential individuals who possess promising futures along with relevant experience in the semiconductor industry.

But why does Apple need proprietary semiconductor chips? Aren’t the ones they have doing just fine? Clearly, as sales would indicate, they are. However, the potential that an Apple-only semiconductor chip could offer seem too good to pass up.

For one, it is suspected that Apple’s new chips will offer new power-saving technology. A power-miser chip combined with an ultra-dense battery life technology will allow users to go for much longer time periods without having to plug in their devices for a charge.

Furthermore, exclusive chips may give Apple hardware the edge to create higher-powered gaming machines—machines that are capable of delivering stunning graphics and ultra-quality video definition.

Another potential upside of a new chip design is handwriting recognition capability (would this confirm rumors of a forthcoming Apple tablet?). Such technology, although it already exists, would fit well into Apple’s model of improving upon already existing technology.

Currently, Apple uses chips from ARM Holdings for many of its devices. Through an acquisition move in 2008, Apple took over P.A. Semi, a chip manufacturer. Apple uses hardware from these firms, but is able to customize it to meet its own purposes. Even though official reports of the new chip may not roll out until early 2010, shareholders saw a $1.24 rise as the rumors spread on Wednesday. 

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