Why HTC Acquired S3 Graphics ?

[chetan]

We are in a new era where Platforms are competing on Patents. Apple, Microsoft and others outbid Google for Nortel's Telecom Patents. Oracle has sued Google for Java Patent Violation on Android Platform and the list continues.

HTC’s graphic solution is using QCOM’s Adreno graphic processor integrated into its Snapdragon application processor. As such, HTC does not need a new graphic chip solution from S3 Graphic. The purpose to buy S3 Graphics is apparently for its patents.

However in case of S3 Graphics, HTC’s chairwoman is a major shareholder of S3 Graphics, which apparently will lead to the question of conflict of interest. HTC could license the patent exclusively from S3 Graphics rather than acquiring the entire company raising investor concerns on corporate governance.

[rustham]

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