S3 Inc, the Santa Clara-based graphics chip maker which earlier this week was revealed as the buyer of the patent portfolio from failed Exponential Technology Inc, (CI No 3,341) cashed in 80m shares, or one third of its interest in United Semiconductor Corp last month, realizing $72m, or three times its original investment. The cash will be used for future internal and external investments, it said. And S3 has reserved the option of realizing an additional $45.5m if a liquidity event such as an initial public offering occurs at USC at any time in the future. USC is a joint venture between S3, United Microelectronics Corp and Alliance Semiconductor Corp, and operates a chip manufacturing facility in Taiwan. S3’s stake is now reduced to 16%, but its rights to purchase manufacturing capacity from USC are unaffected.
