Before Apple started making its own internal hardware for iPhones and iPads, it used to partner with other companies to provide components. One such partnership, between Apple and GPU maker Imagination Technologies, ended in the dark in 2017, but now the two have fully reconciled and are teaming up again.

In an official announcement, Imagination said it has signed a "new multi-year licensing agreement" with Apple, replacing another deal first signed in 2014. The new agreement will also give Apple access to Imagination's entire intellectual property (including AR/VR and automotive technology).

Imagination designs the IMG (formerly known as PowerVR) line of GPUs and licenses them to other companies, including Apple, for manufacturing. While the latest IMG A-series chips could be used in the upcoming iPhone 12, Imagination also manufactures technology for augmented reality that Apple believes will be useful for its AR glasses project, as well as products related to the AI and automotive sectors, which could help expand Apple's product lineup This could help Apple to expand its product lineup.

The termination of the prior agreement between Apple and Imagination (reported in the Financial Times) caused much tension between the two parties. When Imagination announced that Apple, its largest customer, would no longer use its products, the company's stock price tumbled.

Imagination said at the time that it believed Apple might infringe on its copyrights when designing its own chips, which ultimately led to the threat of litigation after informal talks broke down.

The threat of legal action dissipated in 2018 when Imagination was acquired by private equity firm Canyon Bridge, and Imagination maintained throughout the troubled period that it was still interested in another deal with the tech giant.