Source: SlideShare

The British-chip designer “Imagination Technologies” which supplies PowerVR graphics processors to the Cupertino-based iPhone maker for use in the iPad and the iPhone will not be supplying the chips anymore. Imagination Technologies says that Apple, the tech giant, has notified them that they are working on a separate, independent graphics design to control its products.

Imagination Technologies skeptical about Apple making GPUs on its own

Also, the Britain-based chip designer said that tech giant will be reducing its future reliance on the technology of Imagination. For the British chip designer, this decision of the Silicon Valley giant comes as a huge jolt as the iPhone maker is one of the biggest consumers of the company. Also, the Britain-based chip designer depends on the tech giant for around half of its revenue. The smartphone maker will stop giving royalties on iPad and iPhone devices within 15 to 24 months from now.

Because of this decision by the tech giant, the shares of Imagination Technologies declines more than 60%. The iPhone maker, which at one time was looking to buy the chip designer, holds more than 8% share of the company. According to reports by the Financial Times, the iPhone making giant once wanted to buy the chip company but later decided against the complete acquisition in favor of holding some shares.

We may see an A-series chip with both a GPU and CPU designed by the tech giant as early as next year if what the British chip making company says is true. In a statement, the chip making giant said, “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.”

The chip maker added that they had requested evidence from the iPhone maker in respect to the technology used in making the GPUs but the latter has refused to provide it.

Apple could make GPUs, here’s why

The Silicon Valley giant has already found success in designing the CPU. Its ARM-based processor cores are frequently seen outperforming its rivals in terms of ‘better CPUs’. However, any particulars of a new GPU design will probably come under heavy scrutiny.

In its statement, Imagination Technologies said, “Further, 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.”

The chip maker adds that it is discussing potential alternative commercial arrangements with the iPhone maker and the two companies could come to an agreement before things get to that stage.