Himax Technologies, Inc., a Taiwan-based manufacturer of advanced display drivers and other semiconductor products, says it has entered into an agreement with Google Inc. for the Internet giant to acquire a minority stake in its subsidiary, Himax Display Inc.
The valuation of the investment is not disclosed.
Google will purchase preferred shares in Himax Display that will give it a 6.3% stake. Google also has an option to buy additional preferred shares at the same price within one year from closing. If exercised in full, Google will own a total of up to 14.8% of Himax Display.
Himax Display will use the investment to expand and improve production for high tech products such as Google Glass, a wearable computer with an optical head-mounted display being developed by Google. It will also pay back loans from its parent company.
Himax Technologies currently holds 81.5% of its subsidiary and will remain a major shareholder after the Google deal.
Under the Agreement, Himax Technologies will invest additional capital in its subsidiary to fund its ongoing capacity expansion.