A Chinese technology fund has taken a three per cent stake in UK chip maker Imagination Technologies, sending shares rocketing more than 13 per cent.
Tsinghua Unigroup, a state-backed tech holding firm which is part of Tsinghua university, has ambitions to become the biggest chip maker in the world and has taken a three per cent stake in the firm which was recently courted by Apple.
The group attempted to buy US firms Western Digital and Micron Technology but both deals were thwarted by US competition authorities. It has successfully bought up a controlling stake in HP's China business for $4.5bn late year to add to its portfolio.
"Apple is Imagination's fourth largest shareholder and owns eight per cent of the company. As Apple is dependent on Imagination's graphics for its mobile products we believe Apple is unlikely to want Imagination's technology to go to China," noted analysts at Liberum.
It was revealed earlier this year that Imagination and Apple had held talks about a takeover. However, Apple, which experienced its first sales slowdown in more than a decade in recent weeks, ruled out such a deal "at this time".