SANTA CLARA, Calif.--After a three-month delay, Taiwan's government has given its blessing to a graphics chip joint venture between S3 Inc. and Via Technologies Inc., which today announced they are moving ahead with plans to formally launch the new company.
During the summer, Taiwan's new government postponed approval of the venture at the time when S3 was preparing to transfer its assets in graphics chip sets to the new venture. The country's Ministry of Economic Affairs surprised S3 and Via by rejecting the initial proposal and asking for more information (see July 3 story). Santa Clara-based S3 has been counting on the S3-Via Inc. venture to take on its graphics chip business while the company transforms itself into an Internet systems supplier. The application was resubmitted in August, and now it's approved.
"We are pleased to receive word that our transaction can proceed as planned," said Ken Potashner, chairman and chief executive officer of S3. "Clearly, this will enable us to focus fully on our digital media businesses and opportunities."