Apple Partner Imagination Technologies Announces Major Round of Layoffs
Imagination Technologies has been in an agreement with Apple to supply chip technologies since 2020.
- Chip design developer Imagination Technologies has announced plans to lay off a major portion of its workforce.
- The company has stated that challenging business environments in recent months have made job cuts necessary.
Chip designer Imagination Technologies is set to lay off around 20% of its workforce, accounting for approximately 130 jobs. According to internal memos, the company has attributed the job cuts to a challenging business environment in recent months.
Imagination Technologies primarily develops and sells chip designs to third-party manufacturers, including GPU and CPU chips. It most recently partnered with Ventana to develop semiconductors for RISC-V chips. It was the fourth-largest player in the market in terms of chip-related intellectual property in 2022.
Imagination Technologies’ most well-known customer is Apple, which uses its GPU designs in its devices. Apple can use a broad range of Imagination Technologies IP in exchange for licensing fees.
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The demand for semiconductors has seen a significant dip since 2021 following the pandemic, with companies making redundancy plans following the chip shortage during that time. The business has also been impacted by export restrictions by the U.S. on chip technologies to China.
In similar news, Qualcomm cut 1,200 jobs in October 2023, while SiFive, another chip designer, reduced its staff by 20%. Micron and Intel have made substantial cuts in 2022. It is not clear if further layoffs will go ahead in the near future.
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