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Apple Inc

Apple may start making its own graphics chips for iPhone

Brett Molina
USA TODAY

A company creating graphics processing technology for Apple devices such as the iPhone and iPad says the tech giant will sever its relationship to bring development in house.

The new Apple iPhone 7 does not include a headphone jack.

In a statement, Imagination Technologies says Apple — its biggest customer — will stop using its technology between 15 months and two years from now, opting to create graphics processing units for its mobile devices on their own.

Graphics processors are part of the architecture Apple uses in its iPhones, iPads, and other mobile devices to keep them running faster with smoother graphics. For example, the iPhone 7's A10 Fusion chip is twice as fast as the chips in an iPhone 6, and three times faster with graphics speed.

Apple's next iPhone is expected to launch later this fall, and will reportedly introduce features such as wireless charging and greater support for augmented reality.

Imagination Graphics questioned whether Apple can develop its own processors without violating patents tied to its GPU technology. Imagination says Apple declined to provide proof it can create the graphics processors without using its patents.

"It would be extremely challenging to design a brand new GPU architecture from basics without infringing its intellectual property rights," reads a statement from Imagination Technologies.

Apple declined to comment on Imagination's statement.

The announcement sent shares of Imagination Technologies plunging more than 60% on the London markets. Apple represented revenue of $75.9 million for Imagination's 2016 fiscal year, or about half the total, and is forecast to reach $81 million for the current fiscal year.

Follow Brett Molina on Twitter: @brettmolina23.

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