MUMBAI: Taiwan based Himax Technologies announced that Google will acquire 6.3 per cent interest in the company‘s subsidiary, Himax Display (HD).

The purpose of the investment is to fund production upgrades, expand capacity and further enhance production capabilities at HD‘s facilities that produce liquid crystal on silicon (LCOS) chips and modules used in applications including head?mounted display (HMD) such as Google Glass, head?up display (HUD) and pico?projector products.

Under the Agreement, Himax will also invest 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 of 2013 subject to regulatory approvals and other closing conditions.

Google also has an option to make additional investment of preferred shares at the same price within one year from closing. If the option is exercised in full, Google will own a total of up to 14.8 per cent in HDI. Himax Technologies holds 81.5 per cent of HDI at present and will remain the major shareholder of HDI after the transaction. Google will join the core group of HDI share holders including KPCB Holdings, Khosla Ventures I, L.P. and Intel Capital Corporation.

Google‘s investment in HDI will not have a dilutive effect on Himax‘s Nasdaq?traded shares, HIMX.

Founded in 2004, Himax Display has focused on developing commercial applications for LCOS technologies, in?house manufacturing expertise and production lines with proven, high?volume shipment track records. Over the last few years, HDI has devoted its research and development of its LCOS technology for new applications of head? mounted display and other wearable computing applications.