Apple's building its own graphics processor for the iPhone, dropping Imagination GPUs

Apple will soon stop using intellectual property from Imagination Technologies Group for graphics processing units for its iPhone and other devices, as it is working on a separate, independent graphics design for its products, the chip technology company said Monday.

But the U.K. company is not giving up without a fight as it doubts Apple can develop a brand new GPU without infringing Imagination’s intellectual property.

Apple held an 8.5 percent share of the issued share capital of Imagination as of April 30 last year. The iPhone maker said in a filing in March last year that it had discussions with Imagination about a possible acquisition, though it did not have plans to make an offer at that time. Apple is Imagination's largest customer and it described the iPhone maker as "essential to the business of the Group" in its annual report for 2016.

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