Imagination Technologies, Apple’s Former GPU Provider Agrees to Takeover for $743 Million
After it was found out that Apple’s latest iPhone 8 family features its own-designed GPU, and after Imagination Technologies lost out on a contract, the UK-based chip maker had no other choice but to submit to a takeover. A China-backed firm called Canyon Bridge will be taking over the GPU designer.
News Comes Nearly Six Months After Apple, the Biggest Imagination Technologies Customer Decided It Would Proceed to Build Its Own GPUs
A Silicon Valley-based private equity firm backed by the Chinese fund Yitai Capital called Canyon Bridge has agreed to pay $743.2 million to acquire Imagination Technologies. This development comes just six months after Apple stated it would no longer be depending on the UK-based designer’s technology. Keep in mind that after Apple’s announcement, Imagination Technologies’ stock price halved almost overnight, creating a huge crisis within the firm.
Apple’s confirmation that it would rely on its own GPU eventually materialized in the A11 Bionic chip, and according to company’s executives, it took nearly three years of development to make the SoC. In the previous earnings call, Imagination Technologies stated that it while it reported a profit, it was upset that Apple decided to forego the technology found in iPhone and iPad devices.
Following the announcement, the company has stated that it is looking into taking legal action to explore whether Apple could bring GPU development in-house without infringing on its technology. Imagination Technologies earlier stated the following related to violating patents and intellectual property.
“Apple has not presented any evidence to substantiate its assertion that it will no longer require Imagination’s technology, without violating Imagination’s patents, intellectual property, and confidential information.”
According to the GPU designer, it still remains in dispute with Apple and it is unclear as to what terms will be detailed should a settlement offer takes place.
You might also like to check out: