Himax Technologies, Inc. (NASDAQ:HIMX) Q4 2022 Earnings Call Transcript

Jordan Wu: Yes, indeed, as the resolution becomes higher and refresh rates becomes higher, touch panel, you know basically if you take our panels, I think the higher end fancy panels is a trend towards poly panels as opposed to, I mean the traditional silicon panels does enjoy cost advantage, but when it comes to higher end, higher resolution, higher refresher panels, now then poly does enjoy advantage and we are seeing many first projects together with our TDDI solutions going hand in hand, yes.

Jason Tan: And so I have one followup question, do we have penetration rate of automotive TDDI? Is that some kind of, is kind of number?

Jordan Wu: For the automotive industry, I don’t have the number in hand, but I did mention earlier that for Himax alone last year automotive TDDI accounted for about 17% of our total automotive sales. And so for the automotive TDDI in terms of ASPs are a bit higher than traditional DDIC, but in terms of revenue percentage like TDDI. However, bear in mind our number is substantially higher than the industry average which we believe is below 10%.

Jason Tan: Below 10%. Okay.

Jordan Wu: Below 10%, yes so I would say our, such number is probably kind of double the industry average and certainly we expect this number to stage the increase. It’s not going to be as dramatic as how we saw in smartphone and tablet you know in the last few years. But I mentioned for Himax our sales, we expect the number to be up from around 17% last year to about 40% or above by 2025 or 2026. So that is certainly a major business for us, yes.

Jason Tan: Got it. That’s all of my questions. Thank you.

Jordan Wu: Thank you, Jason.

Operator: I show no further questions at this time. I would now like to turn the conference back to Jordan for closing remarks.

Jordan Wu: As a final note, Eric Li, our Chief IR and PR Officer will maintain investor marketing activities and continue to attend investment conferences. We will announce the details as they come about. Thank you and have a nice day.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.