Google Inc (GOOG) Pushing Investment For This Key Device

If Google Inc (NASDAQ:GOOG) is licking its wounds from its less-than-expected earnings report last week, it doesn’t seem to show it. While Google Glass is still in beta testing and is not yet ready for prime time, the company has continued to insist that the product will be important for the company in the future. (And this despite much controversy.)

And though the company missed projections in its earnings report last week, that does not seem to be stopping Google Inc (NASDAQ:GOOG) from moving forward with some of its investments, even in as-yet-unproven innovations.  For the company, it is clearly about progressing and is not about re-assessing where it is going and how to shore up the current numbers. And there seems to be more evidence of that forging ahead with the latest piece of news coming out of Asia.

The latest word is that Google Inc (NASDAQ:GOOG), which relies on Asian companies to help manufacture much of its devices regardless of the brand name, is about to close a deal with Himax Technologies Inc. of Taiwan to purchase a 6-percent stake in the chipmaker in order to ensure production of display tech like what is needed for Google Glass and head-up displays, for example.

The investment, according to Himax, will allow the company to produce liquid crystal on silicon chips that are used in devices that are head-mounted.

While financial terms of the deal have not been disclosed, the transaction is due to close during the current quarter and apparently allows Google Inc (NASDAQ:GOOG) the option of raising its stake in Himax to nearly 15 percent within 12 months.

We may know more about this deal later when it closes, but did Google really have to invest in the company in order to have Google Glass displays produced? Do you think there is more to this than just Google Glass?

And if you were in the shoes of an investor like fund manager Julian Robertson (see his full equity portfolio), would you be in support of this investment, or would you rather see the company devote funds to its existing business models to improve its EPS? We would love your feedback in the comments section below.

DISCLOSURE: None