AAPL Apple Inc

By Rory Gallivan

LONDON--U.K. semiconductor designer Imagination Technologies Group PLC (IMG.LN) said Monday that major customer Apple Inc. (AAPL) has told it that it will no longer be using Imagination technology in its products in two years' time.

Imagination said Apple has informed it that it has been working on a separate, independent graphics design to control its products.

Imagination, whose graphics technology is used in Apple phones, tablets and other devices, said Apple hasn't provided evidence that it will no longer require Imagination's technology without violating patents.

Imagination said it believes it would be "extremely challenging" for Apple to design its own graphics technology without infringing patents.

The companies are in talks about commercial arrangements, Imagination said.

Apple last year confirmed that it had held talks about buying Imagination, but decided not to make an offer.

Imagination designs technology for graphics processing units, known as GPUs, used in smartphones and other devices and for central processing units, or CPUs.

-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter: @RoryGallivan

(END) Dow Jones Newswires

April 03, 2017 02:50 ET (06:50 GMT)

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