Supplier and manufacturer of semiconductor products Himax Technologies announced it has entered into an agreement for Google to invest in the company's subsidiary Himax Display. 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 (LCOS) chips and modules used in applications including head-mounted displays (HMD) such as Google Glass, head-up displays (HUD) and pico-projector products. Under the agreement, Himax will also invest an additional amount in HDI to fund its ongoing capacity expansion. HDI will also use a portion of the proceeds to substantially reduce its loan from Himax. The transaction is expected to close in the third quarter, subject to regulatory approvals and other closing conditions.
Under the agreement, Google will purchase preferred shares in HDI. Upon closing, Google will hold a 6.3 percent interest in HDI. Google also has an option to make buy additional preferred shares at the same price within one year from closing. If the option is exercised in full, Google will own up to 14.8 percent in HDI. Himax Technologies holds 81.5 percent of HDI at present and will remain the major shareholder of HDI after the transaction.
Google will join the core group of HDI shareholders including KPCB Holdings, Khosla Ventures and Intel Capital. Google's investment in HDI will not have a dilutive effect on Himax's Nasdaq-traded shares, HIMX.
