S3 Graphics' future hung in the balance since June 2011, when its parent company VIA Technologies
announced sale of its stake in it. Since then, it's been a word on the wires, that smartphone maker HTC has been in the fray to buy it out, since it is facing IP turbulence with Apple. HTC and Apple used S3 Graphics (
September 2011) and AMD (
November 2011), respectively, as proxies in their patent infringement battles. It emerged out of the patent spat, that S3 Graphics holds a handy bouquet of graphics IP, and HTC announced that it is now back on track to acquire it.
Smartphone giant HTC backed S3 Graphics' claims to certain graphics-related patents in the patent infringement case against Apple. "We think S3's patent portfolio is valid and strong, and we have decided to complete the purchase of S3 after cautious assessment," HTC's general counsel Grace Lei said, at an annual shareholders' general meeting. S3 Graphics currently owns about 270 patents, some of which are licensed to Sony Corp., Nintendo Co. and Microsoft Corp., Lei added.