Imagination and ARM in licensing discussions with ARM

Imagination Technologies, the designer of graphics microchips, is in talks with ARM Holdings, its fellow British chip designer, about cross-licensing intellectual property to each other.

Imagination Technologies, the designer of graphics microchips, is in talks with ARM Holdings, its fellow British chip designer, about cross-licensing intellectual property to each other.

A strategic alliance between Imagination Technologies and ARM could be a prelude to a wider partnership as both companies seek to have their chip designs embedded into a broader range of electronic devices.

Hossein Yassaie, Imagination's chief executive, said a tie-up with ARM had compelling logic and would underscore Britain's leading position as a generator of technological intellectual property. The talks are at an early stage. "We are talking to a number of players, including ARM," he said.

Imagination and ARM would co-operate on designing a chip using Imagination's graphics technology and ARM's so-called standard microprocessor designs used in mobile phones. The result could be used in mobiles with graphics capabilities similar to games consoles like the Sega Dreamcast, which already uses Imagination's chip designs.

Mr Yassaie said the group was on track to demonstrate its first digital signalling processing (DSP) device in the first half of next year. DSP puts audio and video technology on one chip at less than half the price of existing technology.