“The troubled British microchip ­designer Imagination Technologies has become a takeover target for a private equity fund backed by the Chinese government,” Christopher Williams reports for The Telegraph. “Canyon Bridge Capital Partners, which is based in Silicon Valley but funded by authorities in Beijing, has held talks about a potential bid for Imagination or parts of its business.”

“City sources said that Canyon Bridge was viewed as a serious potential bidder. Last year it agreed to pay $1.3bn (£1bn) for Lattice Semiconductor, a US maker of specialised microchips,” Williams reports. “That deal has provoked unease over the private equity firm’s links to the Chinese government. Beijing has made increased sway in the global high technology market a policy priority and Chinese investors have been on a buying spree.”

“A bid for Imagination could be a test of the British Government’s readiness to intervene in takeovers,” Williams reports. “Imagination was forced to put itself on the block in June after Apple said it would stop using its graphics technology in the iPhone… Imagination, which now has a stock market value shy of £400m, declined to comment. At its peak the company was worth around £2bn.”

Read more in the full article here.

MacDailyNews Take: As Imagination is learning the hard way, it’s not smart to put all of your eggs in one basket.

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Why Apple’s ditching of Imagination is critical for the future of the iPhone – and maybe even the Mac – April 5, 2017
Apple aims for more control, less cost as it accelerates in chip design – April 5, 2017
Apple could look to buy Imagination Technologies after ditching the chip firm, share price plunge – April 4, 2017
Imagination Technologies’ shares collapse after Apple dumps UK chip designer – April 3, 2017
Apple nabs top talent from iPhone 7 GPU chipmaker Imagination Technologies – October 13, 2016
After failed takeover talks with Apple, Imagination Technologies sells stake to state-owned Chinese company – May 9, 2016
Apple in ‘advanced talks’ to acquire Imagination Technologies for PowerVR GPU – March 22, 2016