Latest news with #microchips
Yahoo
14 hours ago
- Business
- Yahoo
UK chipmaker considers breakup as it is rocked by Trump's tariff assault
One of Britain's leading microchip businesses is racing to complete a $1bn (£740m) sale as it grapples with the impact of Donald Trump's trade war. Imagination Technologies, which designs graphics processor technology for customers such as Apple, has held sale talks with two US rivals. Bosses of the Chinese-owned company are also considering a potential break-up to get a deal over the line, which could include selling its valuable patent portfolio. It is understood that executives have put a $1bn price tag on Imagination, with bankers from Lazard overseeing the process. In a memo to staff, Ray Bingham, Imagination's chairman, said 'the Galway Project', which refers to the sale talks, 'continues to progress well'. The memo added: 'The second-to-none creativity and expertise of our teams is an incredible asset to capture the unique opportunity created by the current AI revolution.' It comes after the president's trade war with China has rocked the tech industry, including at UK-based Imagination. Pressure has arisen after the US introduced increasingly stringent sanctions on China's chip industry, as Mr Trump seeks to limit China's access to Western technology. This stems from fears that it could be used by Beijing's military. Imagination, which is based in Hertfordshire, was taken private by US-based investor Canyon Bridge in a £550m deal in 2017. However, the business was later engulfed in a political storm after Canyon Bridge's Chinese backers attempted an unsuccessful boardroom coup. This led to the departure of the then-chief executive, Ron Black, who blew the whistle on the Chinese effort to take control of the business. Last year, an employment tribunal ruled Imagination had unfairly sacked Mr Black, who had sued the company for £200m. Damages are yet to be determined. Canyon Bridge has been considering its options for Imagination for several years, at one stage exploring a Chinese float and then a US listing. According to its latest accounts for the year ending December 2023, Imagination's revenues increased by 3.6pc to £124.6m, although its profits plunged by 78pc to £2.6m. At the time, the company warned that 'US and UK export controls' on its Chinese customers had 'stymied top-line revenue growth'. As for its management, staff were told earlier this month that Simon Beresford-Wylie, the current chief executive, is preparing to leave the business. Didier Lamouche, a board member, will lead the business in the interim while it appoints a successor. A spokesman for Imagination declined to comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
15 hours ago
- Business
- Telegraph
UK chipmaker considers breakup as it is rocked by Trump's tariff assault
One of Britain's leading microchip businesses is racing to complete a $1bn (£740m) sale as it grapples with the impact of Donald Trump's trade war. Imagination Technologies, which designs graphics processor technology for customers such as Apple, has held sale talks with two US rivals. Bosses of the Chinese-owned company are also considering a potential break-up to get a deal over the line, which could include selling its valuable patent portfolio. It is understood that executives have put a $1bn price tag on Imagination, with bankers from Lazard overseeing the process. In a memo to staff, Ray Bingham, Imagination's chairman, said 'the Galway Project', which refers to the sale talks, 'continues to progress well'. The memo added: 'The second-to-none creativity and expertise of our teams is an incredible asset to capture the unique opportunity created by the current AI revolution.' It comes after the president's trade war with China has rocked the tech industry, including at UK-based Imagination. Pressure has arisen after the US introduced increasingly stringent sanctions on China's chip industry, as Mr Trump seeks to limit China's access to Western technology. This stems from fears that it could be used by Beijing's military. Imagination, which is based in Hertfordshire, was taken private by US-based investor Canyon Bridge in a £550m deal in 2017. However, the business was later engulfed in a political storm after Canyon Bridge's Chinese backers attempted an unsuccessful boardroom coup. This led to the departure of the then-chief executive, Ron Black, who blew the whistle on the Chinese effort to take control of the business. Last year, an employment tribunal ruled Imagination had unfairly sacked Mr Black, who had sued the company for £200m. Damages are yet to be determined. Canyon Bridge has been considering its options for Imagination for several years, at one stage exploring a Chinese float and then a US listing. According to its latest accounts for the year ending December 2023, Imagination's revenues increased by 3.6pc to £124.6m, although its profits plunged by 78pc to £2.6m. At the time, the company warned that 'US and UK export controls' on its Chinese customers had 'stymied top-line revenue growth'. As for its management, staff were told earlier this month that Simon Beresford-Wylie, the current chief executive, is preparing to leave the business. Didier Lamouche, a board member, will lead the business in the interim while it appoints a successor.
New York Times
05-06-2025
- Business
- New York Times
How the Maker of the ‘Most Complex Machine Humans Ever Created' Is Navigating Trade Fights
Seemingly every week, Christophe Fouquet, the chief executive of the Dutch technology company ASML, has found himself grappling with political firestorms. Last month, President Trump announced 50 percent tariffs on European goods sold to the United States, potentially raising some costs for ASML's lithography machines, which are critical for producing advanced microchips. Two days later, he paused the tariffs. Around the same time, the foreign minister of the Netherlands was in Beijing, partly to discuss lifting the rules that bar Chinese companies from buying ASML's equipment. Then this week, the Dutch government collapsed, throwing any trade talks into question. All of these events had the potential to disrupt ASML, which is the only maker of complex lithography machines that can cost as much as $400 million and be as big as a train car. The tools are so coveted by nations such as China and the United States for making cutting-edge chips that ASML has been turned into a geopolitical chess piece in trade battles, with some of its products restricted for export to certain countries. The tussling has made it an uncertain time for Mr. Fouquet, 52, a Frenchman who took over as chief executive of the $300 billion company last year. 'A large part of it is still out of our hands,' he said in a recent interview from ASML's headquarters in the small town of Veldhoven, about 80 miles south of Amsterdam. Want all of The Times? Subscribe.
Globe and Mail
02-06-2025
- Business
- Globe and Mail
Why Broadcom Stock Blew Past the Market on Monday
Since the start of the tariff war, investors have been nervous about microchip stocks. That feeling wasn't much in evidence with Broadcom (NASDAQ: AVGO) on Monday, however, as the company's shares added 3% in value that trading session. A confident and bullish analyst note helped boost sentiment, and power Broadcom to a win over the S&P 500 's (SNPINDEX: ^GSPC) 0.4% daily gain. Optimistic about the chip sector That note -- a weekly update on leading semiconductor titles -- was published by white-shoe investment bank Morgan Stanley Monday morning. It covered several notable chip stocks, and although this week's edition mainly focused on the sector's current darling Nvidia, it also addressed cutting-edge companies Broadcom and Marvell. According to reports, Morgan Stanley feels demand for Nvidia's suite of products remains strong, and will continue to be notably higher than supply. Digesting this, investors clearly extrapolated this to be a benefit for the wider market for advanced chips, such as those that can power artificial intelligence (AI) functionalities. The investment bank added that a recent tailwind, inventory buildup arising from component delivery hiccups, should be short-lived. Once this abates, the market is likely to recover quite speedily. In the note, Morgan Stanley said that it believes Broadcom will post solid results when it reports its second quarter of fiscal 2025 figures after market close this Thursday, June 5. The high expectations of professional bulls The bank isn't the only researcher expecting a good second-quarter showing from Broadcom. Collectively, analysts tracking the stock are anticipating nearly 43% year-over-year growth in per-share earnings (to $1.57), on the back of a 19%-plus improvement in revenue to almost $15 billion for the period. Given its admirably wide range of next-generation offerings, I'd fully expect meaty growth, too. Should you invest $1,000 in Broadcom right now? Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Broadcom and Marvell Technology. The Motley Fool has a disclosure policy.
Daily Mail
29-05-2025
- Business
- Daily Mail
This is how YOU can profit from the AI revolution: ANNE ASHWORTH reveals everything investors need to know - and which companies experts are backing
Artificial intelligence (AI) is changing our lives in a 21st century industrial revolution powered by semiconductors. The companies that supply these vital products - which are used to make microchips - may have seemed like a danger zone for investors of late.
