Intel will dump its stake in Imagination Technologies, suggesting the chip maker may also stop using the company’s PowerVR graphics processors

Intel will sell its stake in Imagination Technologies, a company that makes the PowerVR graphics processors for Apple’s iPhone and iPad. Citing JPMorgan Securities, a report from Apple Insider says that, post-sales, the Intel Foundation and Intel Capital will not hold any shares in Imagination Technologies.

Intel Corporation To Drop Stake In Apple Inc. Supplier

Will Intel stop using Imagination’s tech?

Intel had been the licensee of the British chip maker’s 3D technology. In 2006, the chip maker purchased a stake in Imagination and extended its licensing agreement with the company. PowerVR graphics were generally packed in the Atom line up, but they are now limited only to “Moorefield” Atom chips for phones and small tablets.

Intel’s selling its stake in the tech firm could suggest that the chip maker is looking forward to lowering its dependence on PowerVR altogether. There are good possibilities that Moorefield’s successors might come up with in-house Intel graphics similar to Bay Trail’s design.

The Intel Foundation was established by Intel in 1989 to fund educational and charitable programs. The Intel Foundation held the Imagination Technologies shares that were given to it by the Intel Capital Corp. After selling the stake, neither Intel nor its foundation will have any holdings in Imagination.

Apple owns a big stake in Imagination

Imagination Technologies’ biggest shareholders are Baillie Gifford & Co Ltd with a 12.9% stake, followed by Prudential PLC with an 11.8% stake. Apple owns 8.5% of the company, while AXA Investment Management holds 7.56%, and Newton Investment Management owns 6.4%.

Apple is a licensee of Imagination Technologies after renewing its agreement with the company a year ago. There was no information revealed regarding the terms of the deal, but in February 2014, Imagination did mention that the agreement covers multiple years and various uses.

Apple acquired a 3.6% stake in Imagination Technologies in 2008 and has since increased its share. The company’s powerful PowerVR Series 6 chips have been used in Apple’s iDevices since the third-generation iPhone 3GS. Apple’s iPhone 6 and the iPhone 6 Plus are packed with the latest generation A8 processor and the PowerVR GX6450, a six-core graphics processor that has enhanced performance by up to 84 times compared to the first iPhone released in 2007.