Chinese firm buys UK chip designer

Reuters

The UNITED kingdom technology firm of the Imagination, which designs graphics chips for smartphones, was bought for £550m from a Chinese-backed investment firm.

The imagination poses-for-sale in the month of June after Apple, its biggest customer, said it would stop using its products.

The boss of Imagination, Andrew Heath, said that the acquisition by China-backed Canyon Bridge was a “great result” and ensure he remained in the UNITED kingdom.

It becomes the latest UK designer of chips to be purchased by a foreign investor.

Last year, ARM, which designs microchips technology used in Apple and Samsung smartphones, has been acquired by Japan’s Softbank for £24bn.

Canyon Bridge recently raised $1.5 billion (£1.1 bn) from Chinese investors and has offices in Beijing and San Francisco.’British innovation’

The firm said it currently has no intention to cut jobs in Padua based on Imagination, after the acquisition.

Ray Bingham, a partner at Canyon Bridge, said: “we are investing in UK talent and expertise in order to accelerate the expansion of the Imagination, particularly in Asia, where its technology platform will lead the continued globalization of British innovation.”

Imagination has seen its shares halve the value of Apple, said in April that it would be an agreement for the use of its products.

The two companies are still engaged in a dispute as to travel with the Imagination in the discussion of the Apple “claims” that they would be able to develop its own computer chip without violating the Fantasy of intellectual property rights.

Apple royalty payments for the technology of the chips used in its iphone, ipad and ipod, accounted for about half of Fantasy revenues.

Getty Images

Mr Heath said: “Imagination has made excellent progress both operationally and financially over the last 18 months until Apple unsubstantiated claims and subsequent litigation has forced us to change course.

“The acquisition of ensure that the Imagination with its strong growth prospects – remains an independent IP licensing business, based in the UK, but operating all over the world.”

It is not Canyon the Bridge of the first agreement for a Western tech.

The company is seeking approval for a $1.3 billion deal to buy US chipmaker Lattice Semiconductor.

Last week, the Trump administration has barred the sale of Latex to the Chinese-backed company, citing national security risks.