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Imagination Technologies shares plummet as Apple reveals intentions to design its own graphics chips

UK firm asks for evidence that new designs don't infringe on its own

Imagination Technologies shares plummet as Apple reveals intentions to design its own graphics chips

Shares in UK chip designer Imagination Technologies have declined sharply after the firm’s largest customer Apple said it would stop using its tech in future Apple products.

Apple has previously used the tech as the basis of its graphics processor units in many of its devices, including the Phone, iPod, Apple TV and Apple Watch.

It has now told Imagination however it intends to stop using these designed and IP in 15 months to two years' time.

Apple plans to use an independent graphics design it has been working on.

Shares in Imagination plummeted by as much as 70% on the announcement of the news, their lowest point since 2009.

Preparing for a fight

For its part, Imagination has requested evidence that Apple’s new designs aren’t violating its patents, IP and confidential information.

The UK and US firms are in discussions over potential alternative commercial arrangements, though it’s clear the chip designer is not happy with the announcement.

“Imagination believes that it would be extremely challenging to design a brand new GPU architecture from basics without infringing its intellectual property rights, accordingly Imagination does not accept Apple’s assertions,” read a statement.


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Craig Chapple is a freelance analyst, consultant and writer with specialist knowledge of the games industry. He has previously served as Senior Editor at PocketGamer.biz, as well as holding roles at Sensor Tower, Nintendo and Develop.