Intel Corp said it bought an additional 25 million shares in Imagination Technologies Group Plc for strategic reasons, and now owns 13.99 percent of the British chip designer's total issued voting rights.
However, Intel said it has no current intention to make an offer for Imagination Technologies.
Intel, which now holds about 32 million shares of Imagination Technologies, has already licensed Imagination's graphics and video IP cores for deployment in its PC, mobile computing and consumer architectures.
Imagination's shares jumped 12.7 pence to 107.7 pence by 1339 GMT on Thursday on the London Stock Exchange.
(Reporting by Purwa Naveen Raman in Bangalore; Editing by Himani Sarkar)