A NY Times blog entry reports that Apple is indeed working on its own variant of the ARM processor for the iPhone. The information verifies what has long been speculated based on Apple’s acquisition of P.A. Semi earlier this year and announcements by both ARM and Steve Jobs.

By developing its own ARM variant, Apple could create a processor that meets the specific needs of the iPhone and iPod, building support for functions such as the touch screen or scroll wheel into silicon and possibly savings on costs by reducing the number of processors needed in each device. In addition, Apple’ will be able to maintain tighter controls on who knows what about its future products by disposing of an outside chip supplier.

Read more here: Apple Developing ARM Processors for iPhones