Toumaz has spun out a subsidiary to handle its wireless IC business.
To be called Toumaz Microsystems, it has investment from multimedia processor intellectual property firm Imagination Technologies.
"In order to strengthen the focus of both the healthcare and semiconductor divisions of Toumaz, the board has decided to reorganise into two distinct businesses: Toumaz UK covering health technology solutions, and Toumaz Microsystems covering integrated circuits for low power wireless communication," said Toumaz. "Both companies will be subsidiaries of Toumaz Ltd."
Toumaz Microsystems gets all of the Toumaz chip design team and will focus on the design, development and sale of ICs and solutions for radios embedded in internet-connected devices in markets including: home automation, enterprise automation, healthcare, smart power, security, monitoring systems, and toys.
Toumaz Ltd will own 75% of the Microsystems subsidiary.
"Imagination will invest a combination of cash, certain licences to Imagination's hardware and software technologies, and supportive engineering resources - totalling £5m - in Toumaz Microsystems and will own 25% of the business," said Toumaz.
"The extended collaboration with Toumaz , and our support of its newly established subsidiary, is part of an overall strategy of developing strategic partnerships and supporting the growth of ecosystems which will drive and exploit the opportunities of an increasingly internet-connected world," said Imagination CEO Hossein Yassaie.
All of the existing chip ranges, including Telran and Xenif, will be transferred to Microsystems.
"The subsidiary will focus on developing a multi-standard connectivity chip, an ultra-low power radio receiver and transmitter chip, incorporating IEEE 802.15.6 [body area network standard] and other relevant standards," said Toumaz. "It will be one of the first chips to be based on this new standard and will specifically target body area networks and a range of low-power domestic consumer wireless sensor applications."
The board of Microsystems will consist of two members from Toumaz and one from Imagination.
Professor Chris Toumazou, CEO of Toumaz, will become the Chairman of Microsystems.
The remaining part of Toumaz will focus solely on healthcare and sport applications, including licensing IP for these applications to others, using chips from the Microsystems subsidiary.
In November, Imagination Technologies confirmed Bristol as the location for its latest PowerVR graphics and multimedia R&D facility.
With more than 1,000 staff, its world-wide headquarters and many of its PowerVR R&D teams are based in Kings Langley, near London. Including its Leeds and Chepstow design centres, the UK is home to more than 70% of its workforce.