Imagination Technologies $1B Sale Canceled Amid U.S. Tariffs
British chip design leader Imagination Technologies is facing a highly challenging situation. A nearly $1 billion sale has been abruptly canceled, a decision directly resulting from the company’s declining revenue and mounting financial pressure. The company’s owner, Chinese fund Canyon Bridge, attributed the cancellation to growing market uncertainty and weak financial performance.
The biggest setback, however, came from the U.S. market. Tariffs imposed by President Donald Trump have impacted Imagination’s sales in the United States, dealing a severe blow to the company’s business. This move has further complicated the company’s future prospects.
Financial Losses and Revenue Decline
Imagination Technologies reported a pre-tax loss of £38 million (approximately $51 million) in 2024, while the company’s revenue fell 30% year-on-year to £108 million. The annual report released in June 2025 indicated that the company might breach loan covenants, creating potential financial risks for the future. The report also highlighted a “material uncertainty” that poses a significant challenge to the company’s operations. Canyon Bridge attempted to sell the company over the summer, but financial pressures and poor market conditions halted the process.
Major Impact of U.S. President Trump’s Tariffs
Although based in the U.K., Imagination Technologies earns most of its revenue by selling its intellectual property (IP) in the U.S. market. Tariffs imposed by Trump created price volatility and increases for the company’s Indian and global customers. As a result, Imagination’s U.S. sales were adversely affected, causing significant losses. A company spokesperson stated that business conditions have improved recently and the financial owners remain confident about the company’s future, but political and commercial tensions continue to present challenges.
Canyon Bridge’s Sale Plan Fails
Canyon Bridge, which acquired Imagination Technologies in 2017 for around £550 million, attempted to sell the company this time as well. However, tariffs, U.S.-China trade tensions, and competitive market conditions made the sale impossible. Canyon Bridge cited poor financial results and market volatility as reasons for halting the sale process. Additionally, investments connected to China exposed the company to political pressures and market challenges.
The Ups and Downs of Imagination Technologies
Imagination Technologies was once highly successful and considered a leading company designing graphics processing units (GPUs) for Apple. In 2012, the company’s valuation reached approximately £2 billion. However, by 2019, Apple had stopped using Imagination’s IP in its iPhones and other devices, significantly affecting the company’s revenue. Canyon Bridge acquired the company in 2017 and attempted to revive it with new investments, but ongoing U.S.-China trade tensions and competition in the technology sector posed continuous challenges.
Political and Market Pressures
Political and market pressures played a significant role in the cancellation of Imagination Technologies’ sale. Trade disputes between the U.S. and China, along with technological barriers, affected investor and buyer interest. U.S. policies aimed to boost the security and competitiveness of American technology, leading to stricter scrutiny of China-linked investments or companies. This political environment made it challenging for Canyon Bridge to sell the company.
Company’s Future and Recovery Efforts
Despite financial and market pressures, Canyon Bridge has expressed optimism about Imagination Technologies’ future. The company has secured a new $100 million investment to strengthen its position in graphics, AI, and computing technologies. According to a company spokesperson, these technological innovations and strategic collaborations are helping improve business conditions and move the company toward long-term stability.
Conclusion
British chipmaker Imagination Technologies suffered significant setbacks due to U.S. President Trump’s tariffs and escalating trade tensions, forcing the company to cancel its planned sale. With a 30% decline in revenue and financial losses, the company faced operational challenges. The investment and failed sale by China-based Canyon Bridge highlight how political and technological environments have destabilized the sector. While there are hopes for improvement, uncertainties remain due to market and global pressures. Innovation and strong investor support are expected to guide Imagination Technologies through this challenging period.
Also Read
