Google bets on hardware growth in US$1.1 billion deal with Taiwan’s HTC
The global internet giant’s agreement to take on HTC design and engineering staff is expected to advance innovation in its line of smartphones and smart devices
Google, the world’s biggest internet company, is ratcheting up efforts to grow its hardware business to compete with Apple, Samsung Electronics and major Chinese makers of smart devices through a US$1.1 billion deal with struggling Taiwanese smartphone supplier HTC Corp.
In joint announcement on Thursday, the two companies said about 2,000 HTC employees would formally join Google to develop smartphones and other devices. Many of these HTC staff are already involved in making Google’s Pixel-brand premium smartphones.
In addition, Google will receive a non-exclusive licence for HTC’s intellectual property. The transaction is expected to close early next year.
Rick Osterloh, the senior vice-president for hardware at Google, said in a blog post that the agreement with HTC would fuel even more product innovation.
“Last fall, we introduced our first family of ‘Made by Google’ products, including Pixel smartphones, Google Home, Google Wifi, Daydream View and Chromecast Ultra, and we’re preparing to unveil our second generation of products on October 4,” Osterloh said.
“We’re excited about the 2017 line-up, but even more inspired by what’s in store over the next five, 10, even 20 years.”