Intel has bought shares in British graphics chip specialist, Imagination Technologies, following hot on the heels of Apple also purchasing a small slice of the company and recent rumours that Imagination are involved in development of a PSP 2 chip for Sony.

The fact that there is definitely two of the biggest technology companies in the world – and quite possibly a third – all pitching for a slice of the Imagination pie tells us one thing. Whatever is going on in Imagination's labs an hour of so up the M1 from London is something that we, as avid tech-fiends and consumers, want to know more about.

Imagination already provides Intel with a license for the PowerVR graphics tech that is used in numerous mobile devices such as the iPhone and Sony's Xperia X1 phone.

Intel versus Apple?

Intel owns nearly 7 million Imagination shares and said in a statement to the London Stock Exchange that it "reserves the right to announce an offer or a possible offer to acquire the shares in Imagination Technologies Group which it does not already own and/or to take any other action which would otherwise be restricted under Rule 2.8 of the City Code within six months from the date of this announcement if there is a material change in circumstances or in [certain events]".

TechRadar will bring you all the news and an interview with the guys over at Imagination Technologies from CES next month. For now though, we expect they are going to enjoy a VERY good Christmas!