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    Donnie Teng • Nomura

    Donnie Teng's questions to Himax Technologies Inc (HIMX) leadership

    Donnie Teng's questions to Himax Technologies Inc (HIMX) leadership • Q4 2024

    Question

    Donnie Teng from Nomura inquired about the company's Co-Packaged Optics (CPO) business, asking about the adoption timeline, potential scale of mass production, and competitive landscape. He also questioned the reasons behind the sequential decline in the automotive driver IC business for Q1 and the stability of the gross margin despite this.

    Answer

    President and CEO Jordan Wu explained that CPO mass production is likely to commence in 2026, and even with conservative assumptions, it could represent an annualized revenue of hundreds of millions of dollars in its early stages. He clarified that the Q1 automotive revenue decline is a normal seasonal effect due to the Lunar New Year, not a change in competitive dynamics. Wu attributed the stable gross margin forecast to a favorable product mix, with strong DDIC sales offsetting a slight decline in TDDI for the quarter.

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    Donnie Teng's questions to Himax Technologies Inc (HIMX) leadership • Q3 2024

    Question

    Donnie Teng asked about Himax's optimistic Q4 automotive business guidance, which contrasts with peers, questioning the drivers of this outperformance and the reasons for market volatility. He also inquired about the progress of the CPO business, its potential revenue contribution in Q4, and the future timeline.

    Answer

    President and CEO Jordan Wu attributed the strong Q4 automotive outlook to widespread rush orders fueled by China's stimulus plans, which Himax is uniquely positioned to fulfill due to its market leadership. While confident for Q4, he expressed caution for Q1 2025. For the CPO business, Wu clarified it would not have a material revenue impact in Q4, as shipments are for early-stage customer verification. He elaborated that future development focuses on increasing optical fiber density and that timelines are being accelerated at customer request.

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