Because of Apple: ImgTec wants to sell lines for MIPS and Ensigma

Wegen Apple: ImgTec will Sparten für MIPS und Ensigma verkaufen

Imagination Technologies (ImgTec) has announced the sale of its MIPS and Ensigma business and will focus exclusively on the PowerVR graphics business. The planned sale is a result of Apple’s abandonment of PowerVR graphics solutions in future A-Series system-on-a chips.

ImgTec is made up of three business areas: PowerVR (GPUs), MIPS (processor cores and architectures) and Ensigma (radio and network processing units). According to ImgTec’s public announcement by Apple to integrate its own graphics solution into future SoCs of the A series, the company has to streamline itself in order to remain viable. Apple is responsible for half of its sales and 69% of its sales with ImgTec’s GPUs.

Back to the roots

In order to strengthen the balance sheet, ImgTec is now looking to concentrate fully on the GPU business. The Ensigma and MIPS divisions were purchased at the turn of the millennium and in 2012 to diversify the company. Now all the switches are back on GPU and thus the origin of the company. MIPS processors from ImgTec are used, for example, in routers or set-top boxes, but also in the automotive segment through a cooperation with Mobileye, which is now part of Intel. Ensigma-IP is used in the IoT sector as well as WLAN, Bluetooth, or DVB solutions. Although ImgTec reports growth for both divisions, the PowerVR business remains the most important for the Group.

Agreement failed

ImgTec originally wanted to reach an agreement with Apple regarding the use of Intellectual Property of ImgTec in new graphics solutions from Apple. “Imagination believes that the complete new development of a brand new GPU architecture without the infringement of copyright rights is an extreme challenge.” A new agreement has not come in the negotiations between Apple and ImgTec so far, so that ImgTec now the way over the In the licensing agreement of both companies. Details of the contract content are not publicly known.

New PowerVR graphics architecture Furian

In order to be better positioned for the uncertain future, ImgTec has to repel two of its three divisions and put everything on a horse. With Furian, ImgTec introduced a completely new PowerVR graphics architecture only in mid-March, which, in addition to its use in smartphones, is also aimed at high-performance and efficient VR and AR solutions as well as the automotive industry for ADAS solutions (Advanced Driver Assistance Systems). Its premiere will celebrate Furian in new Series 8XT GPUs.

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