Let’s start with Imagination Technologies. The IP developer ran into stormy waters a couple of years ago as the stream of licenses on which its business depended dwindled. Those problems saw long term CEO Sir Hossein Yassaie thrown overboard.
Now, what was seen as one of the jewels in the UK electronics crown has been sold to Canyon Bridge, a Chinese backed investment vehicle, in a deal which values it at $550million – a quarter of what it was seen to be worth in its prime. In a separate deal, Imagination has sold its MIPS operation to a US consortium for $65m.
What does the deal mean for Imagination? On the face of it, not a lot. There has been a commitment by Canyon Bridge to maintain operations in the UK and to invest. But with Canyon Bridge’s apparent focus on Asia, how long will that commitment last? And if there is opportunity in Asia, why hasn’t Imagination exploited it already?
Meanwhile, Plessey Semiconductors has come out of a long period of uncertainty. Once another jewel in the UK electronics industry’s crown, Plessey was sold a number of times, renamed, refocused and generally kicked around. But a management buyout and a particularly incisive acquisition of technology has put it in a strong position in a burgeoning global market. That acquisition was GaN on silicon technology, which it is using to manufacture LEDs which enable new types of lighting product.
GaN on Si LEDs not only emit more lumens per unit area, but also dissipate heat more quickly. The result, it claims, are smaller, more reliable LEDs.
And Plessey’s LED expertise has seen it win the Grand Prix at this year’s British Engineering Excellence Awards. According to the judges, ‘Plessey has created the right product for the right market at the right time. In particular, its development of GaN on silicon technology has helped to improve LED efficiency and the judges are heartened to see innovation from a UK semiconductor company’.
Nothing like being in the right place at the right time.
