Donnie Teng's questions to Himax Technologies (HIMX) leadership • Q4 2024
Question
Donnie Teng inquired about the future revenue potential and mass production timeline for Himax's Co-Packaged Optics (CPO) technology, including its initial applications and competitive positioning. He also asked for clarification on the sequential decline in the Q1 automotive driver IC business and the reasons behind the stable gross margin forecast.
Answer
President and CEO Jordan Wu explained that while CPO mass production is expected in 2026, the annualized revenue potential in its early stages could reach hundreds of millions of dollars, initially targeting switches in cloud applications. Wu clarified that the Q1 sequential decline in automotive revenue is due to normal seasonality from the Lunar New Year, not competitive pressure, and that inventory levels are healthy. He added that the stable Q1 gross margin is supported by a favorable product mix, with strong DDIC sales offsetting a temporary dip in TDDI.