Rumors have been crisscrossing the Internet about actions by Apple that point tellingly to the advent of an Apple tablet, or some kind of outsize iPod touch. VentureBeat is speculating that Apple may use chips they have developed themselves in the imminent $800 tablet computer.

Following some of the back story to the rumor helps it make a little more sense: in 2008, Apple acquired P.A. Semi for $278 million and for seemingly no reason, other than extremely valuable and talented staff (P.A. Semi's founder was a lead designer of the StrongARM processor). Nonetheless, Apple quickly put the team to work developing processors for iPods and iPhones. What no one knew at the time, VentureBeat says, is that Apple actually broke the team in half, with the other half working towards a chip for their upcoming tablet.

The tablet is speculated to have only a touch screen with no physical keyboard, and Apple is said to be aiming the tablet at high-end users to avoid the endless need to undercut competitors like Asus and Dell on the lower end. Likewise, more in-house chips could mean lower manufacturing costs for Apple.

The impending in-house Apple chips also may imply doom for Apple's chip partner of a few years, NVIDIA, with whom Apple was reported to have a tiff a few weeks ago. Because of disagreements over the way NVIDIA handled issues with faulty chips in MacBook Pros, there was speculation that Apple may drop NVIDIA from future models and return to AMD. Now Apple has added itself to the list of contenders that will vie for processor production.

Both the China Times and MacRumors have said that Apple plans to release the tablet for the holiday season, and that it has placed orders with a few companies for components of the tablet. If this web of gossip and hearsay that we're hearing through the grapevine is to be believed, there are more than a few breakthroughs to be had on Apple's end, and the longing for a tablet by some may finally (finally) be put to rest.

The relationship between Apple and NVIDIA, the manufacturer of the graphics chips in most Macs for quite some time now, appears to be souring at an exponential rate. Electronista reports that negotiations between the two companies to continue their business relationship are not going well, with Apple accusing NVIDIA of being arrogant. According to a source with access to NVIDIA, Apple is on track to cut NVIDIA off as a graphics chip provider for the next 3-4 years.

If the two companies cannot reach an agreement, NVIDIA would continue to provide chips for models that currently use NVIDIA, but Apple would be likely to drop NVIDIA chipsets in updates to their product line, particularly in iMacs and MacBooks currently based on Intel's Nehalem architecture.

A significant factor in the disagreement is the way NVIDIA handled the graphics failures of MacBook Pros carrying the GeForce 8600M video chipset, which had a tendency to overheat and eventually stop working. Apple had to extend the warranty on MBP models graphics chips sold from June 2007 to October 2008 to three years (the Apple support page on this issue can be found here).

The relationship between Intel and NVIDIA hasn't exactly helped, either. Both businesses filed opposing lawsuits over NVIDIA's license to make mainboard chipsets with their own internal memory controllers. If Intel wins, NVIDIA could not make another chipset like its GeForce 9400M model that supports Core i7 processors, and would oust NVIDIA from Macs by exclusion.

Neither Apple nor NVIDIA have publicly spoken on the matter so far. Apple does have a history of severing relationships almost without warning, as they dropped ATI (now AMD) from Power Mac G4s after the company revealed Apple's plans ahead of a Macworld keynote address. However, if Apple does indeed drop NVIDIA, they may have to return to AMD in order to maintain their current graphics standard.

Papermaster. Drebin. Koduri. A law firm specializing in intellectual property? The backcourt starters for the Toronto Raptors? Three key graphics-chip experts now all on the Apple payroll? If you had option C on your answer card, congratulations: now you get to join the WSJ and Forbes in reading the tea leaves about what Apple's dream team of silicon-savvy engineering talent will be building in the secure labs deep in the dwarven mines under 1 Infinite Loop.

Apple's body-snatching spree, particularly focused on veterans of the GPU team at processor maker AMD, aligns with the purchase of PA Semi last year in expanding the company's hardware design capabilities. While there's no Apple product yet on the market featuring chips designed by the new squadron, the expectation is that future iPhones and mobile devices will benefit from Apple-only silicon; graphics capabilities built into these new and exclusive chips would be, presumably, unmatchable by competitors in the mobile space.

The WSJ notes that over 100 LinkedIn profiles for chip engineers who recently worked at Samsung, Intel or other hardware companies now indicate they are sporting Apple employee badges (yay for transparency!). With the current economic climate triggering layoffs and shrinkage at many high-tech enterprises, Apple's combination of marketplace strength and Scrooge McDuck-esque giant pile of cash is allowing it to build a brain trust in hardware that rivals its legendary software expertise.

What kind of super iPhone or magic Mac do you think will be built around these chips and this team?

Apple Insider reports that a new chip that could convert heat into energy. The new "solid state energy conversion generation chip" is under development by chip maker Eneco. It works by grabbing electrons from a hot metal plate, passing them across a vacuum to a cold metal plate and capturing the resulting electronic charge. Or something like that.(We're not physicists, so don't sue us or anything.) The article says that Eneco is in talks with Apple (as well as Dell) to use this technology to harness the waste heat given off by CPUs to power fans and other electronic components.

AMD, the #2 CPU maker in the world, has announced a purchase of ATI, a leading graphics card manufacturer, for $5.4 billion. IMG has more details on the buyout and the business end of things, but we're more interested in finding out what exactly this means for the Mac market. ATI currently supplies the graphics hardware in a good portion of Apple's machines, including the MacBook Pro I'm typing this on and my wife's iMac, so here's hoping ATI makes enough money from working with Apple to keep AMD - an arch rival to Intel - happy. Stay tuned for more details as they develop.

Engadget picked up on a post from ThinkSecret claiming that Apple could announce portables at Macworld '06 that just might be the some of the first available on the market to have Intel's new Yonah chips inside.

Getting this close to Macworld there's no shortage of buzz and rumors flying around about which move Apple's going to take in light of this Intel switch. But ever since I blogged Intel's announcement of the new chips over on DownloadSquad last August, I was willing to put money down (if I had money, that is) that Apple wasn't switching for the Pentium 4 (how old is that chip now?) or even the M or Centrino chips. Apple's after what Intel has cooking in the pot, and I'm willing to throw down (Monopoly) money that Macworld is where they'll whip out those new Intel chips, especially since Macworld Boston is no more. Things also look positive for a Yonah iBook/PowerBook since Engadget also notes that NEC has officially announced a Yonah portable, sans shipping date, however.

So could Apple (ironically) beat other PC manufacturers to the punch with brand new chips from Intel, come Macworld '06? To me, that sounds like a play straight out of Jobs' book.