Himax Technologies: The Automotive Segment Is Still A Drag (Rating Downgrade)

2025-12-08 04:50:00 ET

Back in September, I published a bullish article on Himax Technologies ( HIMX ), a Taiwan-based fabless semiconductor company that develops DDICs (Display Driver Integrated Circuits) and Tcons (timing controllers) used in TVs, laptops, tablets,mobile phones, monitors, digital cameras, car navigation and VR devices. I upgraded HIMX to Buy from Hold, arguing that the company’s ongoing transition from traditional DDICs (Display Driver Integrated Circuits) to high-margin emerging technologies such as WiseEye AI solutions, CPO (co-packaged optics) for AI data centers, silicon photonics and AR/smart glasses will accelerate growth. Unfortunately, I might have rushed my fences by overlooking the ongoing weakness in the company’s key revenue driver: automotive display IC business. Himax offers a comprehensive range of both LCD and OLED display IC technologies. Automotive, comprising DDICs, TDDIs (Touch and Display Driver Integration), Tcons (Timing Controllers) and OLED ICs, is the company’s biggest market, accounting for more than half of total revenues. More of that a bit later....

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