Google (Nasdaq: GOOG) is investing in a Taiwanese microchip maker that makes chips used in its Google Glass, the eyeglass-enabled devices it is testing that can shoot photos and video and access the Internet.
The deal with Tainan, Taiwan-based Himax Technologies Inc. gives Google a 6.3 percent stake in the Himax Display Inc. subsidiary in the form of preferred shares. An option to buy more shares could eventually raise that stake to 14.8 percent.
Himax Technologies now owns 81.5 percent of Himax Display and says it will remain the subsidiary’s majority shareholder.
The deal is expected to close this quarter. The companies did not put a value on it.
U.S.-traded shares of Himax Technologies rose $1, or 19 percent, to $6.17 in premarket trading. Google’s shares rose $2.40 to $899.
“The purpose of the investment is to fund production upgrades, expand capacity and further enhance production capabilities at HDI’s facilities that produce liquid crystal on silicon chips and modules used in applications including head- mounted display such as Google Glass, head-up display and pico- projector products,” Taiwan-based Himax Technologies said in a statement.
Google has an option to make an additional investment in preferred shares within one year of closing.
