VIA sells S3 Graphics to HTC

VIA has sold its share of S3 Graphics to the mobile handset and tablet maker, HTC. VIA will still retain the rights to manufacture and sell current chips using S3 graphics designs.

VIA originally bough the graphics core division back in 2001 for $323 million. VIA are now selling their share to HTC for $147 million. Another company has sold their share to HTC for a further $153 million.

VIA tried to develop S3 Graphics into a rival of ATI and Nvidia, enjoying some success early on with the XP Savage range of video cards. But it's been some time since S3 Graphics has been part of the mainstream video card market. They are better known for graphics core designs that have found their way into VIA North Bridge chips and later media system processors.

HTC is not doubt looking to use the technology in smartphone and tablet PC designs. - Source.