There are bound to be disputes over patent rights especially in the display aspect of mobile phones, and this is definitely a strategic move despite what might be said about it being an internal financial juggling.
Michiel - http://www.discountdisplays.co.uk
Why don't HTC invest on processor instead of graphic chip. I don't think the graphic chip can help much on the gadgets that HTC makes. BTW, owning some rights on the components it use may be a good idea for big companies.
I wonder if HTC is looking to expand into the larger handheld markets? Using S3's graphics and an ARM processor could open the door to phone/mini-notebooks for example. Time will tell if this is just family book keeping or the tip of a major shift in HTC's product family.
exactly.. to me it looks like a very strategic acquisition to fend off apple's lawsuits. Also graphics processors will be a key element of all next gen mobile app processors. If they license an ARM Cortex A9/A15, they can start making their own app processors or even sell it like apple/samsung.
Since now HTC shares are at all time high, they can simply sell some stock do this deal.