Apple buys bigger stake in iPhone chip firm

Apple now holds 9.5 per cent of the London firm

Apple now holds a 9.5 per cent stake in Imagination Technologies, the London-based company that developed the technology used in the 3G iPhone's graphics chips

Imagination Technologies said that Apple is to acquire 2.2 million of its shares at £1.4275 per share.

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Apple already owned shares in Imagination's technology. On 18 December 2008, Imagination revealed in a filing with the London Stock Exchange that Apple acquired 8,200,000 shares, equal to a 3.6 per cent stake in the company.

London-based Imagination Technologies develops intellectual property found in systems-on-chip (SOCs), including its Meta processor cores and PowerVR graphics engines.

A graphics chip based on PowerVR provides the graphics for Apple's 3G iPhone and other companies, including Samsung Electronics and Intel, have licensed Imagination's graphics technology.

Following the share placement and recent share purchases that Apple has made in the open market, Apple will hold 9.5 per cent of the firm.