The company has been hiring people from different segments of the semiconductor industry, including engineers to create multifunction chips that are used in cellphones to run software and carry out other chores. One is Bob Drebin, hired from AMD and now working as a senior director at Apple. Another, according to the WSJ is Raja Koduri, formerly the chief technology officer of the graphics products group at AMD.

So what's up? Only the high level execs at Apple know. But here's the take of the WSJ: "Apple could use the internally developed 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, people familiar with its plans say.