Apple has raised the stakes in its bitter stand-off with Imagination Technologies by opening an office on the British microchip company’s doorstep.

The Silicon Valley giant has planted its flag by renting a 22,500 square-foot office in St Albans, a stone’s throw from Imagination’s headquarters. It plans to use the office to develop its own graphics technology as it ditches Imagination, leading to fears that it will poach the British company’s most talented staff.

The development is set to heighten tensions between the companies, exacerbating fears that Apple is seeking a quasi-takeover of its supplier by hiring its employees and weakening the company’s hand as the two tussle over Apple’s plans to ditch the company.