HTC Acquires S3 From VIA

Tweet

Chipmaker VIA has announced the sale of its S3 graphics chipset brand to mobile phone manufacturer HTC. The deal will likely mean that HTC is focusing on making its smartphones and tablet computers more power-efficient, with better graphics hardware integration.

Most concerns about smartphones and tablet computers involve the balance or tradeoff between power and efficiency. Chipmakers and manufacturers are often trying to find the best solution, and integrated designs are one way to ensure better use of power. Neither VIA nor S3 have been the biggest names in microprocessor and graphics chipsets, although these two companies have focused on building low-power designs that support HD and 3D playback.

S3 actually makes graphics cards for both desktops and notebooks, and also for embedded devices. Many VIA processors also come embedded with S3 graphics chipsets. The deal with HTC will mean that the mobile manufacturer will have better CPU and graphics designs in its arsenal, which can help improve its product lineup.

The acquisition costs $300 million, half of which will go to WTI, a private investment firm backing VIA. The deal has already been approved by the boards of the companies involved, and will be finalized within the year.