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HTC buys into console graphics manufacturer S3

Secures 235 patents and S3 Texture Compression algorithm

Smartphone manufacturer HTC has snapped up S3 Graphics, which produces graphics chipsets for Microsoft, Sony and Nintendo.

HTC acquired all outstanding shares for the American company for $300 million, securing 235 S3 Graphics patents and pending applications.

"S3 Graphics has a long history of designing graphics processor chips and technologies," said CEO Dr. Ken Weng. "S3 Graphics' technology has been implemented in more than one billion computers, game consoles and mobile devices worldwide."

S3's chipsets support HD Blu-ray and 3D acceleration, and its S3 Texture Compression algorithms are licensed to Microsoft, Sony and Nintendo. It reduces bandwith use and increases storage and processing of texture imagry. It's also used in smartphones and tablets.

"As a leading mobile innovator, HTC is committed to continually enhancing its IP portfolio," added HTC CEO Peter Chou. "S3 Graphics’ patents are highly complementary to HTC’s existing innovations and multimedia capabilities."

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Rachel Weber

Senior Editor

Rachel Weber has been with GamesIndustry since 2011 and specialises in news-writing and investigative journalism. She has more than five years of consumer experience, having previously worked for Future Publishing in the UK.