It looks like most of the additional savings will come from IMG Works, the company’s SoC design business, at least according to asset management specialist Investec. While IMG Systems may also take a hit, Investec suggests Imagination’s Ensigma communications IP division may be untouched.
Could that be because Ensigma is being readied for a disposal? According to Investec, the ‘lossmaking IoT connectivity play’ has a history of ‘jam tomorrow’. But with IoT connectivity coming to the forefront, might it be the right time to sell?
But here’s the thing; is the MIPS operation also being offered around? “Microchip might decide to pay something for it,” Investec notes.
Would Microchip have the appetite for such a deal, bearing in mind its recent acquisitions?
