Apple ups stake in Imagination

 BANGALORE, INDIA: British chip designer Imagination Technologies has received a shot in the arm with Apple increasing its investment significantly in the company. Apple has pushed up its stake in Imagination to 9.5 per cent from 3.6 per cent, following the purchase of 2.2 million shares at 1.4275 pounds per share.

The US major Apple had bought 8.2 million shares of Imagination for a 3.6 per cent stake in December 2008, paying the equivalent of 58 cents a share.

Though the stake buy is not the first for Apple, it is now being believed that the stake hike in Imagination could mean that Apple is moving deeper into chip design. The move, according to industry observers, is a way to develop unique product features that can't be easily imitated by competitors.

In April 2008, Apple had bought PA Semi, a maker of low-power Power PC processors. PA Semi designs the products, but manufacturing is outsourced.

Meanwhile, Imagination makes chips that handle graphics, video and other tasks in a variety of consumer electronics. Apple is a licensee of Imagination's technology, which is likely to play a bigger role in Apple products in the future.

With the stake purchase in Imagination now done, Apple will get to use Imagination semiconductors in its devices.

The British company makes semiconductors for a variety of multimedia and communication applications, including digital radios, personal media players, car navigation systems, mobile Internet devices, ultramobile PCs, digital televisions, and set-top boxes.

Apple products such as iPhone, iPod Touch, and Apple TV would most likely be incorporating such products from Imagination.