HTC announced on July 6, 2011 that it is acquiring 100% stake in S3 Graphics for US$300 million, according to a report by the Economic Daily News of Taiwan. S3 Graphics is an image-compression technology provider based in California. Through the transaction, HTC is projected to gain 235 patents, mostly related to graphics technology. It is reported that S3 Graphics won a ruling against Apple over two patents for compression technology earlier this week.