iPhone and iPad graphics chip designer Imagination Technologies (LON:IMG) has extended its licence agreement with MediaTek, a Taiwanese semiconductor company.
The deal, which sent shares up 8% to 332p in early trade, will see Imagination receive licence fees and royalty revenues on the shipment of MediaTek’s SoC (System-on-Chip) devices using Imagination's technology.
Imagination’s PowerVR Series6 graphics chip already powers some of MediaTek’s devices for smartphones and tablets.
Imagination’s EVP marketing, Tony King-Smith, said: “Graphics performance and efficiency, particularly in terms of optimal power consumption, are crucial to the majority of markets today, especially mobile.
“With wide ranging adoption of PowerVR technology MediaTek will confidently deliver a range of solutions that address those markets in a compelling way.
“MediaTek's SoCs are a great example of how we see our partners using their unique expertise and innovation combined with our technologies to differentiate their products.”
Johan Lodenius, chief marketing officer for MediaTek, added: “The strengthening strategic relationship with Imagination is a significant element in our SoC roadmaps and we are pleased with this multi-year agreement which will deliver the next wave of success for both companies across key segments.”