Reuters is reporting Google will take a 6.3% stake in Himax Display (HDI) and has an option to raise its stake to 14.8% within a year.
The news was confirmed by Himax through an official statement, although the company hasn't disclosed the financial details.
Himax said Google's investment would help fund production of liquid crystal on silicon (LCoS) chips and modules, tiny devices used to project images inside head-mounted devices such as Google Glass as well as other products like heads-up displays (HUDs) and pico-projectors.
"Beginning the second quarter of this year, we had already begun expanding capacity to meet demand for our LCOS product line. This investment from Google further validates our commitment to developing breakthrough technologies and state-of-the-art production facilities. We look forward to leveraging this investment and our collective expertise with Google to create unique and transformational LCOS technologies for many years ahead."
The transaction is expected to close in the third quarter of 2013 subject to regulatory approvals and other closing conditions, according to Reuters.
Himax focuses on developing commercial applications for LCoS technologies, in-house manufacturing expertise and production lines, while over the last few years the company has devoted its research and development of its LCoS technology for new applications of head-mounted display and other wearable computing applications, like Google Glass.
The news comes as rival Apple trademarked its 'iWatch' name in Japan and other countries, setting up a likely Google Glass/iWatch showdown for sometime later this year or perhaps next year.