Steve Jobs says PA Semi acquisition will design new iPhone and iPod chipsApple's purchase of microprocessor designer PA Semi wasn't just so the Cupertino company could get into the arms trade — ultimately, the CEO wants to bring in house the design of systems-on-chips currently engineered and manufactured by third parties like Intel and Samsung .

Beyond vertically integrating yet another step in the process of making the popular devices, it would also keep the technology out of the hands of competitors, like the Samsung multitouch phone that looks strikingly similar to Jobs's pet project, and allow the company to keep an even tighter lid on leaks. The only thing Apple still won't do is fabricate the chips and assemble the devices, so while the boxes will still read "Designed by Apple in California," the devices inside will very much be "Assembled in China." (Photo by Chen Zhao)