NextFin news, The Chinese owners of Imagination Technologies, a leading UK microchip company headquartered in Hertfordshire, abandoned a $1 billion sale process on Saturday, October 4, 2025, after the business was severely affected by tariffs imposed under former US President Donald Trump’s trade war.
Imagination Technologies, which designs and licenses intellectual property used in microchips for major technology firms including Google and Apple, reported a 30% revenue decline to $108 million in the last fiscal year. The company also recorded a pre-tax loss of $51 million (£38 million), according to its annual report published last week.
The report, signed off in June 2025, warned of potential breaches of loan covenants and described the company’s future as facing "material uncertainty." Despite these challenges, a company spokesperson stated that trading conditions have since improved and that the new CEO, Didier Lamouche, remains confident about the company’s financial health and prospects.
Canyon Bridge, a US-based but Chinese-owned investment group that acquired Imagination Technologies in 2017 for £550 million, confirmed it had been seeking to sell the company during the summer of 2025. However, it withdrew from the sale process citing "poor market conditions" largely attributed to the ongoing trade tensions and tariffs between the US and China.
As a China-backed company with significant US sales, Imagination Technologies is highly exposed to the tariffs and regulatory pressures stemming from the US government's efforts to decouple American technology supply chains from China. The tariffs have created volatility in the company’s intellectual property sales, complicating its business outlook.
The spokesperson also emphasized that Canyon Bridge continues to fully support Imagination Technologies and is prepared to provide additional funding if necessary to ensure the company’s stability.
The sale abandonment highlights the broader impact of geopolitical trade conflicts on global technology firms, particularly those with cross-border ownership and markets. Imagination Technologies had previously attracted political scrutiny in the UK following its acquisition by Canyon Bridge, amid concerns over Chinese influence in critical technology sectors.
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