In a sudden move VIA has sold S3 Graphics to HTC. VIA acquired S3 Graphics in 2001, but the brands hasn’t been moving so well. Exactly what HTC will do with S3 Graphics is not entirely clear, but it seems likely it will build its own SoC where it can use patent and immaterial property from S3.

VIA and WTI that owns S3, where Cher Wang is the CEO of both companies, and the board of HTC agree on a deal that will cost HTC 300 million where it gets S3’s portfolio but most of all the patents and immaterial property. VIA counts on a capital increase of 115 million after the deal goes through.

The big mystery of the whole is not that S3 Graphics is sold, but that HTC of all is the buyer. It’s eventual plans for the company are completely in the dark and the only real possibility is building a SoC with the new technology. In the future the graphics of ARM-based SoCs are expected to reach video game console levels, and it might be that HTC is looking to license S3 Graphics IP to other actors like Qualcomm.

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