Google Glass doesn't appear set for a release any time soon, but Google Inc (NASDAQ:GOOG) is working hard on the project and its public relations engine has the whole world aware of a product almost nobody has touched. Today the company revealed an investment with Himax Technologies, Inc. (ADR) (NASDAQ:HIMX), one of the suppliers for the wearable computer.
Shares in Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) jumped by more than 30 percent on today's market as investors attempted to jump on the Google Inc (NASDAQ:GOOG) bandwagon. Shares in the company have almost tripled since the start of 2013. The chip maker is one of the biggest movers on today's market as a result of the deal.
Google Himax partnership
Google Inc (NASDAQ:GOOG) and Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) agreed to a deal today that sees Google take control of 6.3 percent of Himax Display, a subsidiary of Himax Technology. The Google Inc (NASDAQ:GOOG) investment is a strategic one, allowing the company to add capital to Himax, which will allow it to increase production, while investing in a company that is primed for growth in the coming years.
The major impetus for this investment is probably the capital influx badly needed at Himax. According to a Himax announcement, the Google investment will “fund production upgrades, expand capacity, and further enhance production capabilities at HDI’s facilities." That's good news for Glass production, and good news for Google.
Google Inc (NASDAQ:GOOG) has the option to buy up to 14.8 percent of Himax Displays under today's deal. The company produces a key component for Google Inc, and some analysts are taking today's investment as a sign that Glass will be ready sooner rather than later.
Google Glass incoming?
Google Inc (NASDAQ:GOOG) has not given any indication of a release date for Google Glass. Today's investment suggests that the company is getting ready to ramp up production of vital components, but it is going to take time. A release date before the end of 2013 is possible, but it's unlikely at this stage.
Today's investment will almost certainly frame a search for other low valuation component manufacturers, in the same way the launch of the iPhone preceded a search for component makers in the smart phone world. Google Inc (NASDAQ:GOOG) is, however, pointing directly to its suppliers.
Long time shareholders in Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) will be celebrating today. Everybody else is looking for a Google Glass release date, or the company's next investment.