Embattled Microchip firm to sell stake in company

 
James Somper
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Imagination have been forced to raise funds are Apple withdrew its contract with the firm (Source: Getty)

Imagination Technologies is considering selling a stake in its microprocessor arm following Apple saying it would stop using the troubled microchip firm’s technology from future devices.

The firm's shares plummeted over 70 per cent on the day of Apple’s announcement earlier this month.

Imagination is expected to sell its MIPS division which designs microprocessors that run tablet computers and smartphones. The company originally acquired the wing in 2012 for an estimated $60m (£46.8m).

Read more: Break-up blues: Imagination's share price falls after rally on sale rumours

The company's shares increased between 2009 and 2012 as smartphone sales boomed. The company was valued at more than £2bn in April 2012.

However, the company has struggled to reduce its reliance on Apple amidst competition from rival firms, Qualcomm and Arm.

Imagination received license fees and royalties of £60.7m for the year to end-April 2016 from Apple, a figure which represents half of its total revenue.

Imagination did not respond to a request to comment.

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