China takes another scalp at Imagination

The fallout from the acquisition of UK chip designer Imagination Technologies continues, with CEO Simon Beresford-Wylie reported to be stepping down over the company’s links to China.

The move comes after an employment tribunal that pitted the company against its former CEO, Ron Black. Black and several other senior executives stepped down in 2020 after the acquisition of the company in 2017 by Canyon Bridge, a US venture fund with links to China.

At the time Imagination owned the IP for the MIPS processor and there was a plan to move the IP to China.

The employment tribunal found that Black was dismissed over protected disclosures about moving to China and concerns about Peter Kuo, a Canyon Bridge partner on Imagination’s board.

However, it also found that there were serious strategic differences between Black and some of Imagination’s directors, so it was likely he would leave the company anyway. Black is suing Imagination for $220m.

Imagination has been approached for comment.