UK chip designer Imagination Technologies shares have fallen drastically after Apple announced that it would not be relying on the company’s chips in the future.

Apple have declared they are working on producing independent chips for their iPhone and iPad range so they have more control over their products.

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The American giant states that it will end the current deal with Imagination in under two years.

Imagination say it will be difficult for Apple to produce its own chips without infringing on its patents.

The UK company relies on Apple for around 50% of its revenue, so the news is a major blow to the company.

Last year, Apple apparently held talks with Imagination as they tried to increase its share of 8% of the company, with a possible buy out.

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