South Korean electronics giant Samsung Electronics announced today that it will be using a new graphics system with its release of the Exynos 5 Octa chip. The new graphics processing unit will be provided by new partner ARM, which will be supplying Mali-T628 GPU technology to Samsung.
With this news, former graphics processing unit partner to Samsung Imagination Technologies suffered massive exits as shareholders scrambled to divest their stocks before the company falls apart completely. Shares were being sold quickly after Samsung's announcement broke. The contract loss left Imagination's close at 32.1p (-11% at 250.7p).
The total damage done amounted to almost 60%, following earlier exits due to investors' fear of GPU rivals. Qualcomm became Imagination's licensee, but the company has been relying on its own graphics unit instead of Imagination's GPU.
Imagination's closest rival (and Samsung's new partner) ARM expectedly gained market share. Between 2011 and 2012, the company increased their market share from 6% to 13%.
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