The large panel driver IC business of Himax Technologies (HIMX, Financial) during the fourth quarter remained robust. Fourth quarter was recorded as the second consecutive quarter for large panel driver ICs sales to achieve year-over-year growth compared to first quarter of 2013. The driver IC sales for 4K TVs remained the highest in the segment with 4K TV penetration expected to have enhanced hugely in 2014.
Himax is believed to be uniquely capable of enabling point-to-point high-speed interface between driver IC and timing controller for 4K TV. It has also partnered with customers who are leveraging their own interfaces and Himax is providing timely, flexible and reliable engineering support.
New products will power growth
This complete solutions approach is believed to be a great competitive advantage for Himax with 4K TV continuing to penetrate the expanding notebook market.
Lenovo approached Himax for complete solution of driver ICs and timing controllers, which is assigned to their varied panel vendors. This positive trend is expected to continue for a long-term and allow excellent growth for large panel driver products of Himax.
However, the sales for its driver ICs leveraging smaller and medium-size panels, particularly used in tablets, smartphones and for the mobile applications remained constant. The sales of smartphones in the fourth quarter are estimated to stablize from its major Korean client and the same trend is expected from the Chinese market.
While the demand for smartphones and tablets largely remained weak, the demand for driver ICs employed in automotive displays is estimated to remain flat in the fourth quarter. Still, the non-driver business segment is believed to provide Himax with highly exciting long-term growth outlook coupled with being a major differentiator for it against several of its competitors.
CMOS image sensors illustrated excellent quarterly demand with the third quarter demand rising over 20% from the last quarter. The 2 and 5 megapixel product sales were mainly solid, primarily due to robust demands from a few top brands along with Chinese white-box customers.
The 8 megapixel CMOS image sensors are witnessing accelerated demand starting from weaker volume sales in the third quarter to becoming a key part of the entire sales for 8 megapixel sensors in the fourth quarter owing to 8 megapixel cameras becoming a key feature in smartphones, going forward.
Himax also introduced its first 13 megapixel sensor during the fourth quarter and expects the 8 megapixel CMOS image sensors to continue to rein the 2015 camera market, and 13 megapixels as the emerging feature in high-end smartphones.
Further, Himax is keen on fiercely facing the competition by producing CMOS image sensors for non-consumer applications, which generally witness greater margins and much less competition.
The touch panel controller products category witnessed tremendous growth in the third quarter, expanding 20% sequentially. Himax expects continued solid growth momentum in the fourth quarter as well due to several key design-wins in both Chinese and international markets.
Himax further enhanced its portfolio of new and innovative product offerings by launching the Front-Lit LCOS technology, its newest patented and proprietary LCOS technology offering.
Google is continuously working closely with Himax acting as a strategic partner on potential products and technologies.
At last, Himax possesses the capability to partner with several top companies in the industry by leveraging its superior and unique wafer level optics, or WLO, for the expansion of three prospective technologies particularly, microdisplay light guides for head-mounted devices, special purpose sensors and array cameras.
Conclusion
Moving ahead, Himax seems to be uniquely well-established in the increasingly competitive market with its breakthrough innovation and continued efforts towards delivering industry-leading products.
