S3 Graphics Logo HTC gobbles up S3 Graphics

Now here's an interesting turn of events, HTC has bought S3 Graphics, from VIA. This has a lot of interesting implications, least not for VIA which might be standing without a graphics partner for its future chipsets. That said, considering that HTC and VIA has common owners; this isn't a very likely outcome.

Now here's an interesting turn of events, HTC has bought S3 Graphics, from VIA. This has a lot of interesting implications, least not for VIA which might be standing without a graphics partner for its future chipsets. That said, considering that HTC and VIA has common owners; this isn't a very likely outcome.

Very little is known at the moment as to what HTC will be doing with S3 Graphics, but we'd expect it to be business as usual for now. We can't really see the benefits to HTC, at least not short term, as S3 Graphics doesn't really many any product today that would be of any use to HTC in its current products. That said, it's possible that HTC could be making some decent royalty money on some of S3's patents, since as recently as back in April, Nintendo signed a licensing deal with S3 to use its S3TC texture compression technology.

VIA and WTI Investment International, the two owners of S3 graphics will cash in US$300 million on the deal of which VIA will get US$147 million. The press release states that VIA will “retain its graphics capabilities to support the development and sale of its processors and chipsets” which is also suggesting that VIA will be licensing S3 technology from HTC in the future. The deal still needs to pass through the usual regulatory approvals, but the two companies are expecting it to close before the end of the year.

Source: VIA