Apple has bought the company that many analysts say helped make the brain in the iPad tablet, people familiar with the deal said Tuesday.
Apple has finalized a deal to acquire a small chip company called Intrinsity, Apple confirmed. Intrinsity, of Austin, Tex., made a name for itself by creating a fast chip for mobile devices in cooperation with Samsung, both a partner and competitor to Apple.
Many experts in the chip industry have speculated that Apple relied on Intrinsity’s chip as the basis for the main engine behind its new iPad.
“Apple buys smaller technology companies from time to time, and we do not comment on our purpose or plans,” said Steve Dowling, a spokesman at Apple.
Tom R. Halfhill, an analyst with Microprocessor Report, said he believed the acquisition price was $121 million.
A spokeswoman for Intrinsity was not immediately available. The company’s Web site appears to have been pulled down.
Earlier this month, a number of speculative reports appeared in the chip industry press, suggesting that Apple may have purchased Intrinsity. The reports gained credibility as Intrinsity workers started listing Apple as their new employer on LinkedIn, the social networking Web site.
When announcing the iPad in February, Steven P. Jobs, Apple’s chief executive, bragged that the device relied on “the most advanced chip” the company had ever placed in a product. Apple called the chip the A4 and said it was responsible for the iPad’s 10-hour battery life and the speedy performance of software.
Intrinsity’s Hummingbird product is thought to be the main computational engine behind the A4.
Apple has spent the last few years amassing more chip talent as it seeks to gain an edge over competitors that buy off-the-shelf components.
