奇景光電 (HIMX) 2022 Q4 法說會逐字稿

Hello, ladies and gentlemen, welcome to the Himax Technologies, Incorporated Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this conference call is being recorded.

女士們先生們，大家好，歡迎來到 Himax Technologies, Incorporated 2022 年第四季度和全年收益電話會議。此時，所有參與者都處於只聽模式。稍後，我們將進行問答環節，屆時將進行說明。提醒一下，正在錄製此電話會議。

I would now like to turn the conference over to your host, Mr. Mark Schwalenberg from MZ Group. Please go ahead.

我現在想把會議轉交給你的東道主，來自 MZ Group 的 Mark Schwalenberg 先生。請繼續。

Thank you. Welcome everyone to the Himax fourth Quarter and full year 2022 earnings call. Joining us from the Company are Mr. Jordan Wu, President and Chief Executive Officer, Ms. Jessica Pan, Chief Financial Officer and Mr. Eric Li, Chief IR/PR Officer. After the Company's prepared comments, we have allocated time for questions in a Q&A session. If you have not yet received a copy of today's results release, please email HIMX@mzgroup.us, access the press release on financial portals or download a copy from Himax's website at www.himax.com.tw.

謝謝。歡迎大家參加 Himax 第四季度和 2022 年全年財報電話會議。加入我們的公司有總裁兼首席執行官 Jordan Wu 先生、首席財務官 Jessica Pan 女士和首席 IR/PR 官 Eric Li 先生。在公司準備好的評論之後，我們在問答環節分配了時間進行提問。如果您還沒有收到今天的結果發布副本，請發送電子郵件至 HIMX@mzgroup.us，訪問金融門戶網站上的新聞稿或從 Himax 的網站 www.himax.com.tw 下載副本。

Before we begin the formal remarks, I'd like to remind everyone that some of the statements in this conference call, including statements regarding expected future financial results and industry growth, are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this conference call. A list of risk factors can be found in the Company's SEC filings, form 20-F for the year ended December 31, 2021 in the section entitled "Risk Factors", as may be amended.

在我們開始正式發言之前，我想提醒大家，本次電話會議中的一些陳述，包括有關預期未來財務結果和行業增長的陳述，是前瞻性陳述，涉及許多風險和不確定性，可能導致實際事件或結果與本次電話會議中描述的事件或結果存在重大差異。風險因素列表可在公司向美國證券交易委員會提交的文件中找到，即截至 2021 年 12 月 31 日止年度的 20-F 表，標題為“風險因素”一節，可能會進行修訂。

Except for the Company's full year of 2021 financials, which were provided in the Company's 20-F and filed with the SEC on March 23, 2022, the financial information included in this conference call is unaudited and consolidated and prepared in accordance with IFRS accounting. Such financial information is generated internally and has not been subjected to the same review and scrutiny, including internal auditing procedures and external audits by an independent auditor, to which we subject our annual consolidated financial statements, and may vary materially from the audited consolidated financial information for the same period. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

除了在公司 20-F 中提供並於 2022 年 3 月 23 日向美國證券交易委員會備案的公司 2021 年全年財務信息外，本次電話會議中包含的財務信息未經審計，並根據 IFRS 會計編制。此類財務信息是內部生成的，沒有經過相同的審查和審查，包括內部審計程序和獨立審計師的外部審計，我們對年度合併財務報表進行審查和審查，可能與經審計的合併財務信息存在重大差異同期。公司不承擔公開更新或修改任何前瞻性陳述的義務，無論是由於新信息、未來事件或其他原因。

I would now like to turn the call over to Mr. Eric Li. Eric, the floor is yours.

我現在想把電話轉給 Eric Li 先生。埃里克，地板是你的。

Thank you Mark and thank you everyone for joining us. My name is Eric Li, Chief IR/PR Officer at Himax. On today's call, I'll first review the Himax consolidated financial performance for the fourth quarter and full year 2022, followed by our first quarter 2023 outlook. Jordan will then give an update on the status of our business, after which we will take questions. We will review our financials on both, IFRS and the non-IFRS basis. The non-IFRS financials exclude share based compensation, acquisitions related charges and the cash awards.

謝謝馬克，謝謝大家加入我們。我叫 Eric Li，奇景光電首席 IR/PR 官。在今天的電話會議上，我將首先回顧 Himax 第四季度和 2022 年全年的綜合財務業績，然後是我們對 2023 年第一季度的展望。喬丹隨後將介紹我們業務的最新情況，之後我們將接受提問。我們將在國際財務報告準則和非國際財務報告準則的基礎上審查我們的財務狀況。非 IFRS 財務數據不包括基於股份的薪酬、收購相關費用和現金獎勵。

We preannounced the preliminary key financial results on the fourth quarter 2022 on January 12, 2023 where revenues and EPS both exceeded guidance while gross margin came in moderately below the guidance range issued on November 10, 2022. Today, our reported results for revenue, gross margin and the EPS are all in line with the pre-announced results.

我們於 2023 年 1 月 12 日預先公佈了 2022 年第四季度的初步主要財務業績，其中收入和每股收益均超過指導，而毛利率略低於 2022 年 11 月 10 日發布的指導範圍。今天，我們報告的收入、毛利率保證金和每股收益都符合預先公佈的結果。

Fourth quarter net revenues of $262.3 million increased 22.8% sequentially, substantially exceeding our guidance of an increase of around 4.0% to 8.0% sequentially despite the macro headwinds continuing to challenge our business. The increased sales momentum was attributed to our continuous efforts to deplete inventory, particularly in the small and medium-sized TDDI segments.

第四季度淨收入為 2.623 億美元，環比增長 22.8%，大大超過我們的預期，環比增長約 4.0% 至 8.0%，儘管宏觀逆風繼續挑戰我們的業務。銷售勢頭的增加歸因於我們不斷努力消耗庫存，特別是在中小型 TDDI 細分市場。

IFRS and non-IFRS gross margins both came in at 30.5%, a decrease from 36% and 36.3% respectively last quarter, and the lower than the guidance range of 31.5% to 33.5%. Price erosion from offloading excess inventory was the predominant factor that adversely impacted our margin profile. Also contributing to margin contraction was higher cost of the inventory sourced primarily during 2021 and early 2022 when foundry and the backend pricings were higher due to capacity constraints. Yet, IFRS profit per diluted ADS was 24.1 cents, exceeding our guidance of 17.8 cents to 20.8 cents. Non-IFRS profit per diluted ADS was 27.3 cents, beating our guidance of 21.0 cents to 24.0 cents.

IFRS 和非 IFRS 毛利率均為 30.5%，分別低於上一季度的 36% 和 36.3%，低於 31.5% 至 33.5% 的指導範圍。卸載過剩庫存導致的價格下跌是對我們的利潤率狀況產生不利影響的主要因素。導致利潤率收縮的另一個原因是主要在 2021 年和 2022 年初採購的庫存成本較高，當時由於產能限制，代工和後端定價較高。然而，IFRS 每股攤薄 ADS 利潤為 24.1 美分，超過我們 17.8 美分至 20.8 美分的指導。非 IFRS 每股攤薄 ADS 利潤為 27.3 美分，超過我們 21.0 美分至 24.0 美分的指導。

Revenue from large display drivers was $43.5 million in Q4, an increase of [5.3]% sequentially, exceeding our prior guidance of flat from last quarter. TV sales grew nicely as expected, increasing single digit quarter-over-quarter and appear to have bottomed following several quarters of sharp correction, while both monitor and notebook sales were better than guided. Large panel driver IC sales accounted for 16.6% of total revenues for the quarter, compared to 19.3% last quarter and 27.7% a year ago.

第四季度來自大型顯示驅動器的收入為 4350 萬美元，環比增長 [5.3]%，超過了我們先前對上一季度持平的指導。電視銷量如預期增長良好，環比增長個位數，並且在經歷幾個季度的大幅調整後似乎已經觸底，而顯示器和筆記本電腦的銷量均好於預期。大面板驅動器 IC 銷售額佔本季度總收入的 16.6%，而上一季度為 19.3%，一年前為 27.7%。

Moving on to our small and medium-sized display driver segment, revenue was $177.4 million, an increase of 25.5% sequentially, and ahead of our guidance of a single digit increase, primarily a result of increasing shipment of TDDI in all three sectors, namely smartphone, tablet and automotive. Despite the challenging macro environment, our fourth quarter revenue for the tablet was up more than 100% sequentially, thanks to the strong shipment in higher-end TDDI products, an illustration of our leading solutions being adopted by more customers for their next generation products, supporting larger sized, high frame rate displays and high precision active stylus features.

轉向我們的中小型顯示驅動器部門，收入為 1.774 億美元，環比增長 25.5%，超出我們指導的個位數增長，這主要是由於所有三個部門的 TDDI 出貨量增加，即智能手機、平板電腦和汽車。儘管宏觀環境充滿挑戰，但我們的平板電腦第四季度收入環比增長超過 100%，這要歸功於高端 TDDI 產品的強勁出貨量，這說明我們領先的解決方案被更多客戶用於其下一代產品，支持更大尺寸、高幀率顯示器和高精度有源手寫筆功能。

Meanwhile the AMOLED total solution sales, including TCON and DDIC, increased mid-teens quarter-over-quarter and accounted for more than 8% of total sales, mainly attributable to our tablet AMOLED total solution supporting the mass production of premium tablet models for a global leading customer.

同時，包括 TCON 和 DDIC 在內的 AMOLED 整體解決方案銷售額環比增長了 15%，佔總銷售額的 8% 以上，這主要歸因於我們的平板電腦 AMOLED 整體解決方案支持高端平板型號的量產全球領先的客戶。

Q4 automotive driver sales increased single digit quarter-over-quarter better than guided as customers restocked, especially for TDDI. Automotive driver business once again represented the largest revenue contributor with over 30% of total sales in the fourth quarter, a result of our comprehensive product coverage and increasing automotive TDDI design-wins across panel houses, Tier 1s and auto brands. It's worth noting that our automotive TDDI sales surged by more than 170% on a year-over-year basis, boosted by the robust adoption of the technology for customers' new generation car models. Small and medium-sized driver IC segment accounted for 67.6% of total sales for the quarter, compared to 66.2% in the previous quarter and 61.2% a year ago.

由於客戶補貨，尤其是 TDDI，第四季度汽車驅動器銷售額環比增長了個位數，好於預期。汽車驅動器業務再次成為最大的收入貢獻者，第四季度佔總銷售額的 30% 以上，這是我們全面的產品覆蓋範圍和越來越多的汽車 TDDI 設計在面板廠、一級供應商和汽車品牌中獲勝的結果。值得注意的是，我們的汽車 TDDI 銷售額同比增長超過 170%，這得益於客戶新一代車型對該技術的大力採用。中小型驅動器 IC 部門佔本季度總銷售額的 67.6%，而上一季度為 66.2%，去年同期為 61.2%。

Fourth quarter non-driver sales also beat guidance with revenues of $41.4 million, up 33.8% from a quarter ago. Our TCON business was up a solid double digit sequentially, bolstered by higher shipment of large sized display drivers, automotive drivers as well as tablet drivers for AMOLED. For automotive TCON, we anticipate business momentum to accelerate in coming quarters, backed by a strong order pipeline and the rapid expanding design-wins across different continents. TCON business represented over 8% of total sales in the fourth quarter. Non-driver products in Q4 accounted for 15.8% of total revenues, as compared to 14.5% in the previous quarter and 11.1% a year ago.

第四季度非司機銷售額也超過預期，收入為 4140 萬美元，比上一季度增長 33.8%。我們的 TCON 業務環比增長了兩位數，這得益於大尺寸顯示驅動器、汽車驅動器以及 AMOLED 平板電腦驅動器出貨量的增加。對於汽車 TCON，我們預計未來幾個季度的業務勢頭將加速，這得益於強大的訂單渠道和在不同大洲迅速擴大的設計勝利。 TCON 業務佔第四季度總銷售額的 8% 以上。第四季度非司機產品佔總收入的 15.8%，而上一季度為 14.5%，一年前為 11.1%。

Our IFRS operating expenses for the fourth quarter were $52.5 million, a decline of 27.9% from the previous quarter and down 6.2% from a year ago. The sequential decrease was caused mainly by decreased annual bonus and salary expenses, partially offset by an increase in R&D expenses. As previously mentioned, we typically grant annual bonuses, including cash and RSUs, to our staff at the end of September each year, which can lead to higher IFRS operating expenses in the third quarter compared to the other quarters of the year.

我們第四季度的 IFRS 運營費用為 5250 萬美元，比上一季度下降 27.9%，比去年同期下降 6.2%。環比下降主要是由於年度獎金和工資支出的減少，部分被研發費用的增加所抵消。如前所述，我們通常在每年 9 月底向我們的員工發放年度獎金，包括現金和 RSU，這可能導致第三季度的 IFRS 運營費用高於當年其他季度。

The year-over-year expense decrease was primarily related to the special bonus we awarded our employees at the end of Q4 2021. Excluding the special bonus paid in Q4 last year, the IFRS operating expenses would have increased 2% year-over-year during the fourth quarter. Non-IFRS operating expenses were $45.6 million for the fourth quarter, down 2.2% from the preceding quarter and down 6.0% from a year ago.

同比費用減少主要與我們在 2021 年第四季度末向員工發放的特別獎金有關。如果不計入去年第四季度支付的特別獎金，IFRS 運營費用將同比增長 2%在第四季度。第四季度非 IFRS 運營費用為 4560 萬美元，環比下降 2.2%，同比下降 6.0%。

Fourth quarter IFRS operating income was $27.5 million, or 10.5% of sales, versus 1.8% of sales in the last quarter and 39.4% of sales from a year ago. Non-IFRS operating income was $34.5 million, or 13.1% of sales, compared to 14.5% last quarter and 41.1% same quarter last year. IFRS after-tax profit was $42.2 million, or 24.1 cents per diluted ADS, compared to $8.3 million, or 4.8 cents per diluted ADS last quarter. We made a divestiture of long-term assets during Q4 2022, which resulted in a non-operating income of around $11 million on an after tax basis. Fourth quarter non-IFRS after-tax profit was $47.7 million, or 27.3 cents per diluted ADS, compared to $29.8 million, or 17.0 cents in the previous quarter.

第四季度 IFRS 營業收入為 2750 萬美元，佔銷售額的 10.5%，上一季度為 1.8%，去年同期為 39.4%。非 IFRS 營業收入為 3450 萬美元，佔銷售額的 13.1%，上一季度為 14.5%，去年同期為 41.1%。 IFRS 稅後利潤為 4220 萬美元，即每股攤薄後的 ADS 利潤為 24.1 美分，而上一季度為 830 萬美元，即每股攤薄後的 ADS 利潤為 4.8 美分。我們在 2022 年第四季度剝離了長期資產，稅後非營業收入約為 1100 萬美元。第四季度非 IFRS 稅後利潤為 4770 萬美元，或每股攤薄美國存託憑證 27.3 美分，而上一季度為 2980 萬美元，或 17.0 美分。

Now let's have a quick review on the 2022 full year financial performance. Revenues totaled $1.2 billion in 2022, representing a 22.3% decline compared to 2021. Unexpected lockdowns in China, geopolitical tensions and macroeconomic related factors created a challenging operating environment and impaired our business performance for the year. The halt in consumer demand and significantly reduced visibility at panel houses and OEMs towards the end of first quarter adversely impacted IC demand and consequently our sales. Given the nature of wafer production, which usually starts months in advance, the abrupt drop in demand resulted in a rapid increase in our inventory.

現在讓我們快速回顧一下2022年全年的財務表現。 2022 年的收入總額為 12 億美元，與 2021 年相比下降了 22.3%。中國的意外停工、地緣政治緊張局勢和宏觀經濟相關因素造成了充滿挑戰的經營環境，並損害了我們當年的經營業績。到第一季度末，消費者需求的停滯以及面板廠和原始設備製造商的知名度顯著降低對 IC 需求產生了不利影響，從而影響了我們的銷售。鑑於晶圓生產通常提前幾個月開始的性質，需求的突然下降導致我們的庫存迅速增加。

Revenue from large panel display drivers totaled $264 million in 2022, a decline of [33.7]% year-over-year, representing 22% of total sales, as compared to 25.7% in 2021. Small and medium-sized driver sales totaled $778.9 million, a decrease of 19.2% year-over-year, representing 64.8% of our total revenues, as compared to 62.3% in 2021. Non-driver products sales totaled $158.4 million, a decrease of 14.7% year-over-year, representing 13.2% of our total sales, as compared to 12.0% a year ago.

2022 年大面板顯示驅動器的收入總計 2.64 億美元，同比下降 [33.7]%，佔總銷售額的 22%，而 2021 年為 25.7%。中小型驅動器銷售額總計 7.789 億美元，同比下降 19.2%，占我們總收入的 64.8%，而 2021 年為 62.3%。非駕駛員產品銷售額總計 1.584 億美元，同比下降 14.7%，佔 13.2占我們總銷售額的百分比，而一年前為 12.0%。

Our automotive segment continued to see extraordinary business momentum in 2022. Automotive sales enjoyed the highest growth among all product lines, up more than 50% on top of the remarkable strength in 2021 when sales grew more than 110%. For the year, sales of traditional DDIC for automotive were up over 30%, while auto TDDI sales surged by more than 300%.

我們的汽車業務在 2022 年繼續保持非凡的業務勢頭。汽車銷售額在所有產品線中增長最快，在 2021 年銷售額增長超過 110% 的強勁勢頭基礎上增長了 50% 以上。全年，車用傳統DDIC銷量增長超過30%，而車用TDDI銷量飆升超過300%。

As we mentioned repeatedly, automotive displays continue to be adopted at a rapid rate in number, size and technological sophistication, implying higher content value of display ICs per vehicle. As the market share leader in automotive display ICs, we continued to gain ground not only in DDIC but also in TDDI, supported by over 200 design-wins with the number still increasing as we speak.

正如我們反复提到的，汽車顯示器在數量、尺寸和技術複雜性方面繼續以快速的速度被採用，這意味著每輛車的顯示 IC 的含量價值更高。作為汽車顯示 IC 市場份額的領導者，我們不僅在 DDIC 領域，而且在 TDDI 領域繼續取得進展，並獲得了 200 多項設計中標，而且這一數字仍在不斷增加。

While our overall annual sales declined due to the unusual and abrupt demand halt, several new sales streams have started to contribute during 2022, including ICs for AMOLED and the ultralow power WiseEye smart sensing. Both product lines enjoyed higher than corporate average gross margin in 2022. Our AMOLED, we provided AMOLED DDIC and TCON for automotive and tablet displays. In addition, we are making good progress with leading panel houses for the development of AMOLED display drivers for smartphone, TV and notebook applications.

雖然我們的年度總銷售額因異常和突然的需求停止而下降，但幾個新的銷售流在 2022 年開始做出貢獻，包括用於 AMOLED 的 IC 和超低功耗 WiseEye 智能傳感。兩條產品線在 2022 年的毛利率都高於企業平均水平。我們的 AMOLED，我們為汽車和平板顯示器提供 AMOLED DDIC 和 TCON。此外，我們正在與領先的面板廠合作開髮用於智能手機、電視和筆記本應用的 AMOLED 顯示驅動器，取得良好進展。

We anticipate the shipment of smartphone AMOLED driver to start in the second half of 2023 for key customers in China and Korea. On the WiseEye product line, we continue to support Dell for its production ramp up in a range of newest models using our first generation WE1 solution. In addition, a host of leading laptop vendors and the CPU platform players, have shown strong interest in broadening AI use cases of future generation smart notebooks by adopting our next generation WE2 AI processor. Jordan will extrapolate on this in a few minutes. Backed by a strong business pipeline and the robust design-in activities in numerous AIoT applications with customers from all over the world, we expect strong sales momentum for WiseEye in 2023.

我們預計智能手機 AMOLED 驅動器將於 2023 年下半年開始為中國和韓國的主要客戶出貨。在 WiseEye 產品線上，我們繼續支持戴爾使用我們的第一代 WE1 解決方案提高一系列最新型號的產量。此外，許多領先的筆記本電腦供應商和 CPU 平台玩家對通過採用我們的下一代 WE2 人工智能處理器來擴大下一代智能筆記本電腦的人工智能用例表現出濃厚的興趣。喬丹將在幾分鐘內對此進行推斷。憑藉強大的業務渠道和與來自世界各地的客戶在眾多 AIoT 應用程序中進行的強大設計活動的支持，我們預計 WiseEye 在 2023 年將實現強勁的銷售勢頭。

IFRS gross margin in 2022 was 40.5%, decreased from 48.4% in 2021. The decline was largely attributable to pricing pressure resulting from excess inventory levels following the sudden halt in demand beginning in the second quarter. In addition, charges related to unmet minimum purchase orders from contracts with foundries and backend suppliers entered during the unprecedented shortage in 2021 also led to the eroding margin.

2022 年 IFRS 毛利率為 40.5%，低於 2021 年的 48.4%。下降的主要原因是第二季度開始需求突然停止後庫存水平過剩導致定價壓力。此外，在 2021 年史無前例的短缺期間，與代工廠和後端供應商簽訂的合同中未滿足的最低採購訂單相關費用也導致利潤率下降。

Non-IFRS gross margin was 40.6% in 2022, decreased from 48.5% in 2021. IFRS operating expenses in 2022 were $229.5 million, up 12.8% from 2021. The increase was primarily a result of the vested portion of the annual bonus compensation awarded to employees in 2022 as well as previous years, along with increased salaries and R&D expenses. Non-IFRS operating expenses were $181.3 million, up 5.7% compared to 2021. 2022 IFRS operating income was $257.6 million, or 21.4% of sales, a decrease from $545 million, or 35.2% of sales, in 2021. Non-IFRS operating income was $306.8 million, in contrast to $578.3 million in 2021.

2022 年非 IFRS 毛利率為 40.6%，低於 2021 年的 48.5%。2022 年的 IFRS 運營費用為 2.295 億美元，較 2021 年增長 12.8%。增加的主要原因是年度獎金補償的既得部分授予2022 年和往年的員工人數增加，工資和研發費用也有所增加。非 IFRS 營業費用為 1.813 億美元，比 2021 年增長 5.7%。2022 年 IFRS 營業收入為 2.576 億美元，佔銷售額的 21.4%，低於 2021 年的 5.45 億美元，佔銷售額的 35.2%。非 IFRS 營業收入為 3.068 億美元，而 2021 年為 5.783 億美元。

IFRS net profit for 2022 was $237 million or $1.36 per diluted ADS, as compared to $436.9 million, or $2.50 per diluted ADS in 2021. Non-IFRS net profit for 2022 was $276.1 million, or $1.58 per diluted ADS, as compared to $463.6 million, or $2.65 per diluted ADS in 2021.

2022 年的 IFRS 淨利潤為 2.37 億美元或每股攤薄後的 ADS 1.36 美元，而 2021 年為 4.369 億美元或每股攤薄後的 ADS 2.50 美元。2022 年的非 IFRS 淨利潤為 2.761 億美元或每股攤薄後的 ADS 1.58 美元，而 2021 年為 4.636 億美元，或 2021 年每股攤薄 ADS 2.65 美元。

Turning to the balance sheet, we had $229.9 million of cash, cash equivalents and other financial assets as of December 31, 2022, compared to $364.4 million at the same time last year and $227.9 million a quarter ago. The substantial decrease in cash was a result of annual cash dividend payout of $217.9 million, partially offset by $82.9 million of operating cash inflow in 2022. We had $46.5 million of long-term unsecured loans as of the end of fourth quarter, of which $6 million was current portion.

轉向資產負債表，截至 2022 年 12 月 31 日，我們擁有 2.299 億美元的現金、現金等價物和其他金融資產，而去年同期為 3.644 億美元，上一季度為 2.279 億美元。現金大幅減少是由於年度現金股息支付 2.179 億美元，部分被 2022 年的 8290 萬美元經營現金流入所抵消。截至第四季度末，我們有 4650 萬美元的長期無抵押貸款，其中 6 美元百萬是當前部分。

Our year end inventories were $370.9 million, down from $410.1 million last quarter and up from $198.6 million a year ago. Accounts receivable at the end of December 2022 was $261.1 million, up from $253.3 million last quarter and from $410.2 million a year ago. DSO was 79 days at the quarter end, as compared to 97 days a year ago and 74 days last quarter. Fourth quarter capital expenditures were $2.3 million, versus $3.4 million last quarter and $2 million a year ago.

我們的年終庫存為 3.709 億美元，低於上一季度的 4.101 億美元，高於一年前的 1.986 億美元。截至 2022 年 12 月末，應收賬款為 2.611 億美元，高於上一季度的 2.533 億美元和一年前的 4.102 億美元。 DSO 在本季度末為 79 天，而去年同期為 97 天，上季度為 74 天。第四季度資本支出為 230 萬美元，上一季度為 340 萬美元，一年前為 200 萬美元。

The fourth quarter CapEx was mainly for R&D related equipment and in-house tester of our IC design business. Total capital expenditures for 2022 were $11.8 million, mainly for design tools, R&D related equipment as well as in-house tester of its IC design business as compared to $7.6 million in 2021.

第四季度資本支出主要用於我們 IC 設計業務的研發相關設備和內部測試儀。 2022 年的總資本支出為 1180 萬美元，主要用於設計工具、研發相關設備以及 IC 設計業務的內部測試儀，而 2021 年為 760 萬美元。

As of December 31, 2022, Himax had 174.4 million ADS outstanding, unchanged from last quarter. On a fully diluted basis, total number of ADS outstanding for the fourth quarter was 175 million.

截至 2022 年 12 月 31 日，Himax 已發行 ADS 為 1.744 億股，與上一季度持平。在完全稀釋的基礎上，第四季度未償還的美國存託憑證總數為 1.75 億。

Now turning to our first quarter 2023 guidance. We expect first quarter revenue to decrease 12% to 17% sequentially. IFRS gross margin is expected to be around 28% to 30%, depending on the final product mix. The first quarter IFRS profit attributable to shareholders is estimated to be in the range of 3.5 cents to 7.0 cents per fully diluted ADS. Non-IFRS profit attributable to shareholders is expected to be in the range of 6.5 to 10 cents per fully diluted ADS.

現在轉向我們 2023 年第一季度的指導。我們預計第一季度收入將環比下降 12% 至 17%。 IFRS 毛利率預計在 28% 至 30% 左右，具體取決於最終產品組合。第一季度歸屬於股東的國際財務報告準則利潤估計在每份完全攤薄的 ADS 3.5 美分至 7.0 美分之間。非 IFRS 股東應占利潤預計在每份完全稀釋的 ADS 6.5 至 10 美分之間。

To note, the EPS guidance already accounts for certain foreign exchange loss attributable to NT Dollar appreciation against the U.S. Dollar based on the prevailing exchange rate. As a reminder, much of our locally incurred expenses, including the bulk of employee salaries, as well as the outstanding income tax payables are NT Dollar based.

需要注意的是，每股收益指引已經根據現行匯率計算了新台幣兌美元升值造成的某些外匯損失。提醒一下，我們在當地發生的大部分費用，包括大部分員工工資，以及未繳納的應付所得稅，都是以新台幣為基礎的。

I will now turn the call over to Jordan to discuss our Q1 2023 outlook. Jordan, the floor is yours.

我現在將電話轉給約旦討論我們 2023 年第一季度的展望。喬丹，地板是你的。

Thank you, Eric. Historically the first quarter has seasonally been the slowest of the year due to the Lunar New Year holidays. On the backdrop of sluggish global demand and a surge of Covid-19 cases in China despite their government lifting COVID restrictions, many Chinese factories extended their shutdown period through the Lunar New Year.

謝謝你，埃里克。從歷史上看，由於農曆新年假期，第一季度是一年中最慢的季節。儘管中國政府取消了對 COVID 的限制，但在全球需求低迷和中國 Covid-19 病例激增的背景下，許多中國工廠將停工期延長至農曆新年。

This added uncertainty to an already stagnant business environment causing our customers to hesitate to place new orders, while cautiously managing their inventory levels and further clouding our business visibility. As uncertainty persists, our objective first and foremost is to strictly manage our inventory level, as we have been aggressive in doing so by sacrificing short-term gross margin to offload excess stock.

這給已經停滯不前的商業環境增加了不確定性，導致我們的客戶在下新訂單時猶豫不決，同時謹慎地管理他們的庫存水平並進一步影響我們的業務可見性。由於不確定性持續存在，我們的首要目標是嚴格管理我們的庫存水平，因為我們一直在通過犧牲短期毛利率來卸載過剩庫存來積極地這樣做。

We also continue to curtail our wafer starts while striving to win more projects from customers specifically for the purpose of digesting our excess inventory. Our inventory position has much improved since its peak during the third quarter last year and we anticipate it will continue to decrease to near our historical average no later than the third quarter of 2023.

我們還繼續減少晶圓開工，同時努力從客戶那裡贏得更多項目，專門用於消化我們的過剩庫存。自去年第三季度達到峰值以來，我們的庫存狀況已大大改善，我們預計它將在 2023 年第三季度之前繼續下降至接近我們的歷史平均水平。

With that said, our Q1 gross margin remains under pressure. As Eric mentioned earlier, the cost of our excess inventory is high from being sourced during tight capacity constraint in 2021 when foundry and backend prices were at peak levels. Another contributing factor to Q1 margin contraction stems from market price decline of certain unsold inventories which will necessitate write-downs.

話雖如此，我們第一季度的毛利率仍然面臨壓力。正如 Eric 之前提到的，我們的過剩庫存成本很高，因為我們是在 2021 年產能緊張的情況下採購的，當時代工和後端價格處於峰值水平。導致第一季度利潤率收縮的另一個因素是某些未售出庫存的市場價格下跌，這將需要進行減記。

However, we believe this effect will gradually diminish throughout the year as the market has shown signs of recovery across many business areas. Notwithstanding the pressure from the destocking process, we continue to work diligently towards improving our gross margin as a primary objective.

然而，我們相信這種影響將在全年逐漸減弱，因為市場在許多業務領域都顯示出複蘇跡象。儘管去庫存過程帶來壓力，但我們繼續努力將提高毛利率作為主要目標。

Despite the expected short-term margin compression, we remain confident in our gross margin prospects, backed particularly by several high visibility product areas, most notably the higher margin automotive and WiseEye smart image sensing businesses which look set to outgrow other businesses.

儘管預期短期利潤率會壓縮，但我們對毛利率前景仍然充滿信心，特別是在幾個知名度高的產品領域的支持下，最顯著的是利潤率較高的汽車和 WiseEye 智能圖像傳感業務，它們的增長勢頭將超過其他業務。

Looking ahead, the semiconductor industry appears to be trending toward a post-pandemic era. While the supply chain gradually stabilizes and channel inventory reverts to healthier levels, we believe a decent recovery is forthcoming.

展望未來，半導體行業似乎正在走向後疫情時代。隨著供應鏈逐漸穩定，渠道庫存恢復到更健康的水平，我們相信良好的複蘇即將到來。

On the revenue front, we expect the first quarter to be the trough of the year with sales rebounding in the second quarter and business momentum continuing to improve into the second half of 2023.

在收入方面，我們預計第一季度將是今年的低谷，第二季度銷售額將反彈，業務勢頭將持續改善至 2023 年下半年。

With that, I will begin with an update of our large panel driver IC business. Our first quarter 2023 large display driver IC revenue is projected to be up high single digit sequentially. We expect monitor IC business to be on a recovery trajectory as customers have started to replenish chips due to reduced channel inventory after multiple quarters of destocking.

那麼，我將從更新我們的大型面板驅動器 IC 業務開始。我們預計 2023 年第一季度大型顯示驅動器 IC 收入將連續增長個位數。我們預計監控 IC 業務將處於復蘇軌道，因為經過多個季度的去庫存後，由於渠道庫存減少，客戶開始補充芯片。

Monitor IC sales in the first quarter are set to grow by a decent double digit. TV panel prices also show signs of stabilization from restocking demand, particularly for mainstream models, and will likely strengthen in Q1, bucking the seasonal factor. We anticipate our sales for TV segment to increase single digit sequentially in Q1.

第一季度的監控 IC 銷售額將以兩位數的速度增長。電視面板價格也顯示出補貨需求穩定的跡象，尤其是主流型號，並且可能會在第一季度走強，從而克服季節性因素。我們預計我們的電視業務銷售額在第一季度將連續增長個位數。

Conversely on notebook segment, the highly publicized downward trend lingers on with further declines from enterprise IT budget cuts in tandem with customers' continuous stringent inventory control measures.

相反，在筆記本電腦領域，隨著企業 IT 預算削減以及客戶持續嚴格的庫存控制措施的進一步下降，廣為人知的下降趨勢仍在繼續。

Turning to the small and medium sized display driver IC business. We expect Q1 revenue for this segment to decrease by double digits sequentially. Q1 automotive IC sales are anticipated to be down mid-teens as our customers continue to reduce inventory for traditional DDICs. However, we see strong momentum for our automotive TDDI sales which are poised to grow by single digit, backed by our solid new design-in pipeline which has been rapidly expanding for many quarters.

轉向中小尺寸顯示驅動IC業務。我們預計該細分市場的第一季度收入將連續下降兩位數。由於我們的客戶繼續減少傳統 DDIC 的庫存，預計第一季度汽車 IC 銷售額將下降 15% 左右。然而，我們看到我們的汽車 TDDI 銷售勢頭強勁，有望以個位數增長，這得益於我們穩固的新設計管道，該管道已連續多個季度迅速擴張。

Additionally, we anticipate customers' inventory adjustment in DDIC will find equilibrium, leading to a strong recovery in the second quarter. Both smartphone and tablet IC sales are set to decline double digits quarter-over-quarter due to seasonality and customers' continuous destocking measures.

此外，我們預計 DDIC 客戶的庫存調整將達到平衡，從而在第二季度實現強勁復甦。由於季節性和客戶持續的去庫存措施，智能手機和平板電腦 IC 銷售額將環比下降兩位數。

Now for automotive update on the automotive segment. The trend for the automobile interior continues to be in favor of more stylish and diverse designs, made possible with increasing quantity and size of panels inside the vehicles equipped with advanced interactive display technologies as we have previously discussed.

現在用於汽車領域的汽車更新。汽車內飾的趨勢繼續有利於更時尚和多樣化的設計，正如我們之前討論的那樣，隨著配備先進交互式顯示技術的車輛內部面板數量和尺寸的增加，這成為可能。

As the leader in the automotive display IC market, we provide a one-stop-shop offering of the most comprehensive product portfolio for automotive display in the industry, ranging from traditional DDIC to new technologies such as TDDI, local dimming TCON, LTDI and AMOLED.

作為汽車顯示 IC 市場的領導者，我們提供業內最全面的汽車顯示產品組合的一站式服務，從傳統的 DDIC 到新技術，如 TDDI、局部調光 TCON、LTDI 和 AMOLED .

Our business visibility for automotive segment for 2023 remains much better than those of consumer electronic products. In addition, we see a favorable trajectory in our automotive TDDI business, backed by our prompt expansion of TDDI adoption and our fast-growing new project-wins as TDDI technology is essential for large sized, interactive, stylish, curved and free-formed automotive displays required of future generation vehicles.

我們在 2023 年汽車領域的業務能見度仍然比消費電子產品要好得多。此外，我們看到我們的汽車 TDDI 業務發展良好，這得益於我們迅速擴大 TDDI 的採用以及我們快速增長的新項目贏得，因為 TDDI 技術對於大型、交互式、時尚、彎曲和自由成型的汽車至關重要下一代車輛所需的顯示器。

We believe our automotive TDDI sales will be one of the primary driving forces for our long-term business growth. Moreover, we anticipate the market share of our automotive TDDI will surpass that of DDIC which has already reached 40% globally.

我們相信我們的汽車 TDDI 銷售將成為我們長期業務增長的主要驅動力之一。此外，我們預計我們的車用TDDI市場份額將超過DDIC，後者已在全球達到40%。

Furthermore Himax is also the first in the industry to launch the LTDI (Large Touch and Display Driver Integration) automotive display solution, catering to the need for ever larger screens inside vehicles. LTDI solution requires even higher levels of integration of display and touch technologies for the next generation, typically larger than 30-inch automotive displays, where the solution can cascade up to 30 chips in support of ultrahigh-resolution displays, usually more than 7Kx1K, and high-precision touch sensitivity.

此外，奇景光電還率先推出LTDI（Large Touch and Display Driver Integration）車用顯示解決方案，滿足車內更大屏幕的需求。 LTDI 解決方案需要更高水平的下一代顯示和触摸技術集成，通常大於 30 英寸的汽車顯示器，其中該解決方案可以級聯多達 30 個芯片以支持超高分辨率顯示器，通常超過 7Kx1K，並且高精度觸摸靈敏度。

United with a top-Tier automotive digital platform provider, our cutting edge LTDI technology was showcased at CES 2023 by one of our leading panel customers for a 55-inch pillar-to-pillar, in-cell touch display that provides seamless, intuitive and advanced tactile experience for future generation smart cabins. Our LTDI is scheduled to start mass production in the second quarter this year, substantially ahead of competition. More design collaborations in some of the most modish automotive vehicles are underway.

與頂級汽車數字平台提供商合作，我們的領先面板客戶之一在 CES 2023 上展示了我們的尖端 LTDI 技術，用於 55 英寸柱對柱內嵌式觸摸顯示屏，提供無縫、直觀和為下一代智能客艙提供先進的觸覺體驗。我們的 LTDI 計劃於今年第二季度開始量產，大大領先於競爭對手。一些最時髦的汽車正在進行更多的設計合作。

Next for an updated on AMOLED. We continue to gear up for AMOLED driver IC development jointly with major Korean and Chinese panel makers in various applications. For tablet, we are seeing shipments on the rise for premium models that adopt advanced AMOLED displays, of which Himax offers both DDIC and TCON and has commenced production to certain leading brands.

接下來是關於 AMOLED 的更新。我們繼續與韓國和中國的主要面板製造商在各種應用中共同開發 AMOLED 驅動 IC。對於平板電腦，我們看到採用先進 AMOLED 顯示屏的高端型號的出貨量正在上升，其中 Himax 提供 DDIC 和 TCON，並已開始為某些領先品牌生產。

For automotive AMOLED display, we continue to win project awards for our flexible AMOLED driver and TCON with both conventional car makers and NEV vendors. Finally, we are making good progress with leading panel houses for the development of AMOLED display drivers for smartphone, TV and notebook applications.

對於汽車 AMOLED 顯示器，我們的柔性 AMOLED 驅動器和 TCON 繼續贏得傳統汽車製造商和新能源汽車供應商的項目獎項。最後，我們正在與領先的面板廠合作，為智能手機、電視和筆記本電腦應用開發 AMOLED 顯示驅動器，取得良好進展。

We expect to commence smartphone AMOLED driver production from the second half of 2023. Our AMOLED business, including display driver and TCON, is slated for strong growth in the next few years. As a reminder, for smartphone AMOLED display driver, we already has secured meaningful capacity.

我們預計從 2023 年下半年開始生產智能手機 AMOLED 驅動器。我們的 AMOLED 業務，包括顯示驅動器和 TCON，預計將在未來幾年實現強勁增長。提醒一下，對於智能手機 AMOLED 顯示驅動，我們已經獲得了有意義的產能。

Now let me share some of the progress we have made on the non-driver IC businesses starting with an update on timing controller. We anticipate Q1 TCON sales to decrease by mid-teens sequentially, hampered by decreased shipment of tablet product for AMOLED displays. On a positive note, our position remains unchallenged in automotive TCON for local dimming technology, which not only improves display contrast ratio, but also drastically reduces display power consumption, which is critical for larger displays and EV models.

現在讓我分享我們在非驅動IC業務上取得的一些進展，從時序控制器的更新開始。我們預計第一季度 TCON 銷售額將連續下降 15% 左右，這受到用於 AMOLED 顯示器的平板電腦產品出貨量下降的阻礙。積極的一面是，我們在局部調光技術的汽車 TCON 中的地位仍然沒有受到挑戰，這不僅提高了顯示對比度，而且大大降低了顯示功耗，這對於更大的顯示器和 EV 模型至關重要。

With years of strenuous work on this high entry barrier technology, we have developed comprehensive local dimming TCON product offerings that can support a wide range of design covering super high frame rate of 240 Hz and resolutions of up to 8K. We have won numerous project awards from various named panel makers, Tier 1s and car makers for premium new car models with a small number of which already commenced mass production recently. Local dimming TCON is set for robust growth starting 2023. We anticipate Q1 automotive TCON sales to increase more than 150% year-over-year and represent over 2% of our total sales.

經過多年在這項高門檻技術上的艱苦努力，我們開發了全面的局部調光 TCON 產品系列，可支持範圍廣泛的設計，涵蓋 240 Hz 的超高幀率和高達 8K 的分辨率。我們的高端新車型獲得了多家知名面板製造商、Tier 1 和汽車製造商的眾多項目獎項，其中少量已於近期開始量產。局部調光 TCON 將從 2023 年開始強勁增長。我們預計第一季度汽車 TCON 銷售額將同比增長 150% 以上，占我們總銷售額的 2% 以上。

Switching gears to the WiseEye AI total solution, which incorporates Himax's s proprietary ultralow power AI processor, always-on CMOS image sensor, and CNN-based AI algorithm. We continue to support the mass production of Dell's notebook and other end-point AI applications, such as automatic meter reading, shared bike parking, video conference device, door lock and medical capsule endoscope. We are more committed than ever to strengthening our WiseEye product roadmap and retain our leadership position in ultralow power AI processor and image sensor for end-point AI applications.

切換到 WiseEye AI 整體解決方案，它結合了 Himax 專有的超低功耗 AI 處理器、始終在線的 CMOS 圖像傳感器和基於 CNN 的 AI 算法。我們繼續支持戴爾筆記本和其他端點AI應用的量產，例如自動抄表、共享單車停車、視頻會議設備、門鎖和醫療膠囊內窺鏡。我們比以往任何時候都更加致力於加強我們的 WiseEye 產品路線圖，並保持我們在用於端點 AI 應用的超低功耗 AI 處理器和圖像傳感器方面的領導地位。

At this year's CES, we teamed up with several industry-leading ecosystem partners and customers to jointly introduce our neomodern ultralow power tinyML solutions in various real end-point AI applications, including surveillance camera with Novatek, a leader in surveillance system SOC, and smart home with Useful Sensors, a start-up founded by Pete Warden, the former Google TensorFlow tech leader.

在今年的 CES 上，我們與多家行業領先的生態系統合作夥伴和客戶合作，在各種真正的端點 AI 應用中共同推出了我們的新現代超低功耗 tinyML 解決方案，包括監控系統 SOC 領導者 Novatek 的監控攝像頭和智能Useful Sensors 的家，這是一家由前 Google TensorFlow 技術負責人 Pete Warden 創立的初創公司。

We also joined forces with Seeed Studio in smart agriculture and Wentai Technology in smart office, both leading players in their respective areas. These are just a few examples of real adoption of our ultralow power WiseEye solution in the emerging end-point ultralow power image AI era. We continue to see increasing deployment of our WiseEye solution in diverse applications, driven by the mega trend of AIoT and growing demand to add image AI capability to everyday objects.

我們還與智慧農業領域的Seeed Studio和智慧辦公領域的文泰科技強強聯手，這兩家公司都是各自領域的領先者。這些只是在新興的端點超低功耗圖像 AI 時代真正採用我們的超低功耗 WiseEye 解決方案的幾個示例。在 AIoT 的大趨勢和為日常物品添加圖像 AI 功能的需求不斷增長的推動下，我們繼續看到 WiseEye 解決方案在各種應用中的部署不斷增加。

To highlight our surveillance camera demonstration, Himax and Novatek jointly showcased a leading ultralow power pre-roll AI solution, enabling battery-operated surveillance camera with comprehensive event recording capability through what is called "negative time" recording. The pre-roll function, powered by our WE1 processor, features an always-on video recording operation at a slow frame rate, using only single digit milliwatts power consumption.

為了突出我們的監控攝像頭演示，奇景光電和聯詠科技聯合展示了領先的超低功耗預卷人工智能解決方案，通過所謂的“負時間”記錄，使電池供電的監控攝像頭具有全面的事件記錄能力。預卷功能由我們的 WE1 處理器提供支持，以低幀率進行始終在線的視頻錄製操作，僅使用一位數毫瓦的功耗。

Meanwhile, the WE1 AI processor intelligently senses specific motion events, such as certain human behavior or suspicious activities. All these are taking place while the core vision processor remains powered off. Once a classified event is identified, the WE1 processor activates the core processor which then initiates a high-resolution recording of the event while stitching the pre-roll video clips of the WE1 processor thereto.

同時，WE1 AI處理器智能感知特定的運動事件，例如某些人類行為或可疑活動。所有這些都是在核心視覺處理器保持斷電的情況下發生的。一旦分類事件被識別，WE1處理器激活核心處理器，然後啟動事件的高分辨率記錄，同時將WE1處理器的預卷視頻剪輯拼接到那裡。

This is a substantial improvement compared to what existing surveillance solutions offer in terms of security as users receive a thorough video stream complete with pre-roll video clips of what preceded the motion events. It also significantly reduces the overall power consumption, made possible for battery-powered surveillance system.

與現有監控解決方案在安全性方面提供的相比，這是一個實質性的改進，因為用戶會收到完整的視頻流，其中包含運動事件之前的預滾動視頻剪輯。它還顯著降低了整體功耗，使電池供電的監控系統成為可能。

With these significant features in pre-roll and ultralow power, WiseEye is gaining traction in various surveillance fields, covering doorbell, door lock and dashcam. Numerous engagements and design projects have been in progress with surveillance customers across different domains after CES.

憑藉預滾動和超低功耗的這些重要功能，WiseEye 在各種監控領域獲得了關注，涵蓋門鈴、門鎖和行車記錄儀。在 CES 之後，與不同領域的監控客戶進行了許多合作和設計項目。

Also during this year's CES, we debuted our next generation WE2 AI processor that offers 40% peak power saving and 30-fold inference speed, implying over 50 times power efficiency on a per inference basis, compared to the first generation WE1 processor which is already leading the industry among AI processors aiming for similar target markets.

同樣在今年的 CES 期間，我們推出了我們的下一代 WE2 AI 處理器，與已經是在針對類似目標市場的 AI 處理器中處於行業領先地位。

With the exceptional local inferencing capability, the new WE2 AI processor performs face landmark detection to identify facial regions, including eyes, mouth, nose, and jaw to enable advanced, accurate and precise facial expression recognition, such as head pose estimation, gaze direction, fatigue detection, et cetera.

憑藉卓越的局部推理能力，新的 WE2 AI 處理器執行面部標誌檢測以識別面部區域，包括眼睛、嘴巴、鼻子和下巴，以實現高級、準確和精確的面部表情識別，例如頭部姿勢估計、注視方向、疲勞檢測等。

These new features provide additional vital intelligence to a broad array of applications on top of the success of Himax's leading WE1 AI processor that provides contextual awareness with the ability to visually detect user engagement levels based on presence, movements, and facial direction.

這些新功能在 Himax 領先的 WE1 AI 處理器取得成功的基礎上，為廣泛的應用程序提供了額外的重要智能，該處理器提供情境感知，能夠根據存在、運動和麵部方向直觀地檢測用戶參與度。

Several leading laptop names have shown strong interest in our WE2 processor after witnessing our live demonstration at CES, leading to many follow-up engineering activities. Additionally, we continue to partner with leading notebook CPU and AP SOC players, with the aim of expanding our engagements with leading global laptop names and IoT players working on the enrichment of various new AI features and use cases for next generation smart notebook and IoT applications.

在目睹我們在 CES 上的現場演示後，幾家領先的筆記本電腦品牌對我們的 WE2 處理器表現出了濃厚的興趣，從而引發了許多後續工程活動。此外，我們繼續與領先的筆記本電腦 CPU 和 AP SOC 廠商合作，旨在擴大我們與全球領先的筆記本電腦品牌和物聯網廠商的合作，致力於豐富下一代智能筆記本電腦和物聯網應用的各種新人工智能功能和用例.

Given a consistent product roadmap, improving product performance and broader customer traction from various domains, we believe that WiseEye will emerge as a multiyear structural growth driver for Himax.

鑑於一致的產品路線圖、改進的產品性能和來自各個領域的更廣泛的客戶吸引力，我們相信 WiseEye 將成為 Himax 多年結構性增長的驅動力。

Lastly, for an update on our Optical Related Product Lines including WLO, LCoS and 3D Sensing. Himax is one of the few companies in the technology industry with a wide array of optical related product lines that are critical for the realization of metaverse. Our technology leadership and manufacturing expertise are evidenced by the growing list of AR/VR goggle device customers and ongoing engineering projects.

最後，更新我們的光學相關產品線，包括 WLO、LCoS 和 3D 傳感。 Himax 是科技行業中為數不多的擁有廣泛的光學相關產品線的公司之一，這些產品線對於實現 Metaverse 至關重要。不斷增加的 AR/VR 護目鏡設備客戶和正在進行的工程項目證明了我們的技術領先地位和製造專業知識。

We continue to work on strengthening our optical related technology suite, while collaborating with some of the world's largest technology companies that remain deeply committed to investing in its development.

我們繼續致力於加強我們的光學相關技術套件，同時與一些世界上最大的技術公司合作，這些公司仍然堅定地致力於投資其開發。

Now to look quickly review some of our recent progress. First on 3D sensing, we see increasing adoption of our optical components and/or 3D sensing technologies that enable new ways people interact with AR and VR applications. At CES 2023, we introduced a series of next generation 3D vision processors to support a variety of state-of-the-art 3D sensing technologies in Time of Flight and structured light.

現在快速回顧一下我們最近的一些進展。首先是 3D 傳感，我們看到越來越多的人採用我們的光學元件和/或 3D 傳感技術，使人們能夠以新的方式與 AR 和 VR 應用程序進行交互。在 CES 2023 上，我們推出了一系列下一代 3D 視覺處理器，以支持飛行時間和結構光方面的各種最先進的 3D 傳感技術。

Our structured light AI processor can provide 3D eye tracking functionality to report the exact eye positions with the industry's highest response rate and low-friction to enable high precision and dizzy-free spatial reality applications. We featured a live demonstration of our 3D naked-eye display at CES with our eye tracking technologies becoming a hot focus point. Viewers experienced a 3D holographic view from all angles without needing additional wearables to enjoy immersive and advanced visual experience without the side effect of feeling nausea or dizziness.

我們的結構光 AI 處理器可以提供 3D 眼球追踪功能，以業界最高的響應速度和低摩擦報告準確的眼球位置，以實現高精度和無眩暈的空間現實應用。我們在 CES 上現場演示了我們的 3D 裸眼顯示器，我們的眼動追踪技術成為了熱點。觀眾從各個角度體驗 3D 全息視圖，無需額外的可穿戴設備即可享受身臨其境的高級視覺體驗，而不會感到噁心或頭暈。

Moving on to WLO on 3D gesture control. Our WLO technology is deployed to empower 3D perception sensing for precise controller-free gesture recognition in VR devices. Our collaboration with a leading VR player is going smoothly and we expect volume production starting middle of this year.

轉到 WLO 的 3D 手勢控制。我們部署了 WLO 技術，以增強 3D 感知傳感，從而在 VR 設備中實現精確的無控制器手勢識別。我們與領先的 VR 播放器的合作進展順利，我們預計今年年中開始量產。

On 3D scanning for object reconstruction, our 3D sensing technology, which incorporates both our 3D projector and 3D decoder, is being deployed by a leading customer's 3D scanning device for the purpose of generating real time digital twins, avatars and 3D environment surroundings that ultimately help users transit and connect seamlessly between physical and digital worlds. The collaboration is ongoing with promising progress, and we expect it to hit the market next year.

在用於對象重建的 3D 掃描方面，我們的 3D 傳感技術結合了我們的 3D 投影儀和 3D 解碼器，正被一家領先客戶的 3D 掃描設備部署，目的是生成實時數字孿生體、化身和 3D 環境，最終幫助用戶在物理世界和數字世界之間無縫轉換和連接。合作正在進行中，取得了可喜的進展，我們預計它將於明年上市。

As I mentioned before, metaverse related developments are early in the lifecycle but overall remains an attractive opportunity for us potentially. Himax is well positioned with years of research and development, a unique product portfolio, production history and key partnerships to capitalize on its growth as the industry continues to emerge and mature. For non-driver IC business, we expect revenue to decrease mid-teens sequentially in the first quarter.

正如我之前提到的，元宇宙相關的開發處於生命週期的早期，但總體而言對我們來說仍然是一個潛在的有吸引力的機會。憑藉多年的研發、獨特的產品組合、生產歷史和重要的合作夥伴關係，奇景光電處於有利地位，可以隨著行業的不斷出現和成熟而利用其增長。對於非驅動器 IC 業務，我們預計第一季度收入將環比下降 15% 左右。

That concludes my report for this quarter. Thank you for your interest in Himax. We appreciate your joining today's call and we are now ready to take questions.

我本季度的報告到此結束。感謝您對奇景光電的關注。感謝您加入今天的電話會議，我們現在準備好回答問題。

(Operator Instructions) Our first question comes from Jerry Su, Credit Suisse. Your line is now open.

（操作員說明）我們的第一個問題來自瑞士信貸的 Jerry Su。您的線路現已開通。

My first question is that in your prepared remarks, you mentioned that the fourth quarter gross margin was impacted by some charges related to future foundry and also the backend for some minimum loading. I want to know if there's still -- is this still impacting your first quarter and also the second quarter margin?

我的第一個問題是，在您準備好的發言中，您提到第四季度的毛利率受到與未來代工相關的一些費用以及一些最低裝載量的後端的影響。我想知道是否還有 - 這是否仍在影響您的第一季度和第二季度利潤率？

Thank you, Jerry. So shall I address the first question first, right?

謝謝你，傑里。那我先說第一個問題吧？

All right. Yes, please.

好的。是的，請。

Okay. To give you a sort of more comprehensive story, such charges i.e. the charges related to our not fulfilling the LTA application, volume application vis-à-vis our future foundry or backend partners and the resulting penalty incurred, such charges in 2022, meaning last year total about 1% of total sales of last year. Okay? And the uncertainty is very much backend loaded as you can imagine, because in the first half, in the first quarter of last year, there was actually still a shortage of supply, so there was no such issue, and it was starting mostly in the second half that we started to have to face such issues.

好的。為了給你一個更全面的故事，此類費用即與我們未完成 LTA 申請相關的費用，針對我們未來的代工廠或後端合作夥伴的批量申請以及由此產生的罰款，此類費用在 2022 年，意味著最後年總銷售額約佔去年總銷售額的1%。好的？可以想像，不確定性很大，因為在上半年，去年第一季度，實際上仍然存在供應短缺，所以沒有這樣的問題，而且主要是在下半年我們開始不得不面對這樣的問題。

The penalty, such penalty will still exist in Q1 this year, which will be a bit larger than that for Q4 last year. But we are not disclosing the detailed number here because they are not really a predominant factor of leading to the slight construction of our gross margin Q1 versus Q4. However, if you look ahead into the rest of the year, we believe when we, our inventory level becoming more normal and will starts gradually normalize, then there will be certainly be less charges of this nature going forward for this year.

這個懲罰，這個懲罰在今年Q1還是會存在的，比去年Q4要大一些。但我們沒有在這裡披露詳細數字，因為它們並不是導致我們第一季度毛利率與第四季度毛利率略有差異的主要因素。然而，如果你展望今年剩餘時間，我們相信當我們的庫存水平變得更加正常並開始逐漸正常化時，今年這種性質的費用肯定會減少。

Bear in mind we, I mean, certainly all these countries are entered into when the industry was suffering from serious capacity shortage. And we believe quite a number of such contracts, while they may appear to be a bit problematic in some cases in the short-term they remain important countries for us going forward, or in the long-term.

請記住，我的意思是，當然所有這些國家都是在該行業遭受嚴重產能短缺時進入的。我們相信有很多這樣的合同，雖然它們在某些情況下在短期內可能看起來有點問題，但它們仍然是我們未來或長期的重要國家。

I would point out to our 28 nanometer LTA for smartphone OLED, and certainly equally important for our DDIC and for automotive sector, which is a very strong supporting factor for success in the automotive market. So, and there are other LTAs primarily in the areas of smartphone and tablet TDDI, we are indeed facing demand issues. And with this project, again, when the industry recovers over time and also when our inventory level comes down to a more normal position, then there will be a lot less problem and not problematic.

我要指出我們用於智能手機 OLED 的 28 納米 LTA，對於我們的 DDIC 和汽車行業當然同樣重要，這是在汽車市場取得成功的非常強大的支持因素。因此，還有其他 LTA 主要在智能手機和平板電腦 TDDI 領域，我們確實面臨需求問題。再次通過這個項目，當行業隨著時間的推移而復蘇，當我們的庫存水平下降到更正常的位置時，問題就會少很多，而不是問題。

And in the meantime, we are certainly in discussion with our foundry partners, trying to achieve some flexibility in terms of execution of such contracts. For example, we may agree to extend the duration in change for a smaller penalty in the short-term, or we may exchange product line, by loading certain other products to them more of certain other products then in change for, our shortage to meet our commitment for the LTA areas.

與此同時，我們當然正在與我們的代工合作夥伴進行討論，試圖在執行此類合同方面實現一些靈活性。例如，我們可能會同意在短期內延長更改的持續時間以獲得更小的懲罰，或者我們可能會交換產品線，通過將某些其他產品加載到他們更多的某些其他產品然後進行更改，以滿足我們的短缺我們對 LTA 地區的承諾。

So there are such negotiations and discussions going on, and we are in the good progress so far. So I think while such penalty may incur throughout the year, will depend largely on the market situation. But as we mentioned earlier, we believe the market will be recovered throughout the year, so we are not pessimistic about this going forward this year.

所以正在進行這樣的談判和討論，到目前為止我們進展順利。所以我認為雖然這種處罰可能全年都會發生，但主要取決於市場情況。但正如我們之前提到的，我們相信市場會在全年復蘇，因此我們對今年的未來並不悲觀。

Okay, thank you. Second question is regarding the guidance outlook. For the first quarter revenue, I think you have guided large sized driver IC and also timing controller to decline potentially. This seems to be a little bit different from your peers. I think they, I think they're guiding for up Q-o-Q. Can you give us some color on what you are seeing on the industry trend and why there is such a difference?

好的謝謝。第二個問題是關於指導前景。對於第一季度的收入，我認為你已經引導了大尺寸驅動器 IC 和時序控制器可能會下降。這似乎與同齡人有些不同。我認為他們，我認為他們正在指導 Q-o-Q。你能給我們一些關於你所看到的行業趨勢的顏色以及為什麼會有這樣的差異嗎？

And then on the automotive side, I think last year had a very strong growth 50% year-over-year. How should we think about the growth for 2023? And then I also want to know what's your opportunity in mini OLED also the micro OLED display for automotive, and how should we think about the midterm gross rate for this automotive business? Thank you.

然後在汽車方面，我認為去年有非常強勁的同比增長 50%。我們應該如何看待 2023 年的增長？然後我還想知道您在迷你 OLED 以及用於汽車的微型 OLED 顯示器中的機會是什麼，我們應該如何考慮這個汽車業務的中期毛利率？謝謝。

Okay. There are a lot of questions. Let me see. To recap, your first question is about the large panel display and TCON okay being different from peers. The second question is about automotive prospect for this year, basically, right? And third question is micro OLED and mini OLED?

好的。有很多問題。讓我看看。回顧一下，您的第一個問題是關於大面板顯示器和 TCON 與同行不同。第二個問題是關於今年的汽車前景，基本上，對吧？第三個問題是micro OLED和mini OLED？

Yes, correct.

是，對的。

Okay. Can I address the second question first, automotive? I think it's probably the most important, the one of three questions, given our exposures to automotive market. We did suffer from a few quarters of sequential decline. Bear in mind in Q1 last year we were sure suffering from shortage with our supply being short of the demand. And, but there's a certain stop of demand, major disruption in China particularly, because there was a sudden lockdown across a big geographical area, especially for example, in (inaudible), which is a local, a major center for automotive manufacturing.

好的。我可以先解決第二個問題，汽車嗎？考慮到我們在汽車市場的風險，我認為這可能是最重要的三個問題之一。我們確實經歷了幾個季度的連續下滑。請記住，在去年第一季度，我們肯定會因供不應求而遭受短缺之苦。而且，但是需求有一定的停止，特別是在中國的重大中斷，因為在一個很大的地理區域突然被封鎖，特別是例如在（聽不清），這是一個當地的主要汽車製造中心。

So a lot of our customers are stuck. They didn't know how to react to the overall lockdown. So while we shipped a lot of ICs to them with they had solid demand in hand at that time, they were not able to produce them or ship their products because of lockdowns. So, inevitably the second quarter ICs we shipped to our customers became their inventory. And such inventory will then be digested throughout Q3, Q4 and even up to Q1 this year. Okay?

所以我們的很多客戶都被困住了。他們不知道如何應對整體封鎖。因此，雖然我們向他們運送了大量 IC，當時他們手頭有穩定的需求，但由於封鎖，他們無法生產或運送他們的產品。因此，我們運送給客戶的第二季度 IC 不可避免地成為他們的庫存。而這些庫存將在整個三季度、四季度甚至今年一季度得到消化。好的？

So that explains big picture wise why the automotive DDIC will suffer some decline sequentially over the last few quarters. However, our TDDI automotive, even during such period has demonstrated a very strong momentum, growing sequentially, certainly year-over-year strongly because it is a relatively new, and also it's in hot demand relatively speaking, because they are newer products, and which are typically designed for newer models, which are, many of which are EV models. And EV models in difficult times are encouraged by the government, incentivized by the government. So they are in better demand compared to traditional models.

因此，這從宏觀上解釋了為什麼汽車 DDIC 在過去幾個季度將連續下滑。然而，我們的 TDDI 汽車，即使在這樣的時期也表現出非常強勁的勢頭，連續增長，肯定是同比增長強勁，因為它是一個相對較新的，而且相對來說它的需求很熱，因為它們是更新的產品，而且它們通常是為較新的模型設計的，其中許多是 EV 模型。困難時期的電動汽車模型受到政府的鼓勵，受到政府的激勵。因此，與傳統模型相比，它們的需求量更大。

So, and therefore, our TDDI or few factors I mentioned still enjoyed very good momentum and growth even during this period, this time of period or this period of difficulty. We believe DDIC where we've done strongly from Q2 because after about three quarters of inventory digestion, I think our, throughout the ecosystem, the inventory level has been back to normal. However, whether we were -- enjoyed the similar strong growth as we enjoyed over the last two years, bear in mind, in the year before we had 110% growth year-over-year, and last year, even the economy we are facing headwinds, we still enjoyed 50% automotive growth.

因此，即使在這段時期、這段時期或這段困難時期，我們的 TDDI 或我提到的幾個因素仍然享有非常好的勢頭和增長。我們相信 DDIC 我們從第二季度開始就表現強勁，因為經過大約四分之三的庫存消化，我認為我們在整個生態系統中的庫存水平已經恢復正常。但是，請記住，在我們實現 110% 同比增長的前一年，以及去年，即使是我們所面臨的經濟，我們是否享受了與過去兩年類似的強勁增長逆風，我們仍然享有 50% 的汽車增長。

So in DDIC this year, such similar growth will be unlikely, I think for a few reasons. One, our market share is already close to 40%, is arguably as high as one can get. So we are -- our DDIC demand is now growing pretty much in line with the market and the automotive market for a few factors, I think you know this better, are unlikely to see a major growth this year. So therefore, we don't think our DDIC will enjoy the similar growth rates compared to last year.

所以在今年的 DDIC 中，這種類似的增長不太可能，我認為有幾個原因。第一，我們的市場佔有率已經接近40%，可以說是高得離譜了。所以我們 - 我們的 DDIC 需求現在的增長與市場和汽車市場的增長基本一致，我想你更了解這一點，今年不太可能出現重大增長。因此，我們認為我們的 DDIC 不會享有與去年相似的增長率。

However our TDDI automotive will definitely continue to enjoy very strong growth with high double digits, very decent double digits year-over-year with quarter-by-quarter sequential growth and half over half sequential growth, I think very well expected. And that is because we simply enjoy very good design win pipelines. We -- in my prepared remarks I talked about more than [200] projects of design wins. Actually out of which only about 20% are currently mass production.

然而，我們的 TDDI 汽車肯定會繼續享受非常強勁的增長，兩位數的增長，非常可觀的兩位數同比增長，逐季環比增長和一半以上的環比增長，我認為這是非常好的預期。那是因為我們只是享受非常好的設計獲勝管道。我們——在我準備好的發言中，我談到了 [200] 多個設計獲勝項目。實際上，目前只有大約 20% 是量產的。

So there is still a lot of upside, not just this year, in the next few years. And so, for last year, our automotive TDDI already accounted for about between, for about 17% of our automotive sales, pretty much industry average is single digit. So we are already 17%, and we expect by year 2025 or 2026, this number will be more than 40%. So that explains our confidence, that demonstrates our confidence that automotive TDDI will continue to enjoy very good growth going forward, not just this year, but also next few years.

所以還有很大的上升空間，不僅僅是今年，未來幾年。因此，去年，我們的汽車 TDDI 已經占我們汽車銷售額的 17% 左右，行業平均水平幾乎是個位數。所以我們已經是 17%，我們預計到 2025 年或 2026 年，這個數字將超過 40%。所以這解釋了我們的信心，這表明我們相信汽車 TDDI 將繼續享受非常好的增長，不僅是今年，而且是未來幾年。

And on top of that, there are a few things that are very exciting, equally exciting. In our prepared remarks we talked about the timing controller, which is a (inaudible) feature. We are the clear industry leader or arguably the only company providing the solution right now in the marketplace. We are -- we need very good, we are getting very good project wins across the board with customers starting from premium models and now certain customers even thinking about making it more into a mainstream model. So this, I think this year it will be again, very high double-digit growth and strong growth for the next few years as well.

最重要的是，有幾件事非常令人興奮，同樣令人興奮。在我們準備好的評論中，我們談到了時序控制器，這是一個（聽不清）功能。我們是明確的行業領導者，或者可以說是目前市場上唯一提供該解決方案的公司。我們是——我們需要非常好，我們正在全面贏得非常好的項目，客戶從高端車型開始，現在某些客戶甚至考慮將其變成主流車型。因此，我認為今年將再次實現非常高的兩位數增長，未來幾年也將實現強勁增長。

And LTDI large display touch and driver IC integration, likewise we talked about our early mobile advantage and CES demo and the second quarter this year commencement of production ahead of the industry again. And this will be a long-term growth engine as well. And finally, OLED work in our view will continue to be a premium niche market for automotive. But we are -- we already have a few customers putting our product into mass production.

以及LTDI大屏觸控和驅動IC集成，同樣我們談到了我們早期的移動優勢和CES演示以及今年第二季度再次領先於行業的投產。這也將是一個長期的增長引擎。最後，我們認為 OLED 工作將繼續成為汽車的優質利基市場。但我們 - 我們已經有一些客戶將我們的產品投入批量生產。

We are designing a fixed, collaborating with certain leading customers for all the players. And so, I think this is long-term looking good as well. So I think with automotive business, I think our overall market share is set to further grow from the existing already very high level plus of 40% and visibility is among the strongest of all sectors. So this, I think will continue to represent our single biggest revenue contributor over the years.

我們正在為所有玩家設計一個固定的、與某些領先客戶合作的平台。因此，我認為這從長遠來看也是不錯的。因此，我認為對於汽車業務，我認為我們的整體市場份額將從目前已經非常高的 40% 以上的水平進一步增長，並且知名度在所有行業中名列前茅。因此，我認為這將繼續代表我們多年來最大的單一收入貢獻者。

And for large display, I think our view for the whole year is going to enjoy the growth and Q1 versus Q4 to us is seasonality. And we have seen TV market stabilizing, price rebounding and all indications are basically saying, telling us that TV market, especially high end point of view point interface for 4K TVs, I think where we have a good presence directly in partnership with leading branded customers. I think starting from second quarter, and so in second half this is set to enjoy growth.

對於大型顯示器，我認為我們對全年的看法將是增長，而第一季度與第四季度對我們來說是季節性的。我們已經看到電視市場趨於穩定、價格反彈，所有跡象基本上都在告訴我們，電視市場，尤其是 4K 電視的高端視點接口，我認為我們在與領先品牌客戶的直接合作中擁有良好的存在.我認為從第二季度開始，下半年將實現增長。

Monitor and notebook prospect are more questionable. I'm saying they do, we do have limited visibility, although we are starting to hear from end customers, leading end customers that there's a good likelihood their destocking process will be coming to a conclusion probably towards the end of second quarter with hopefully the third quarter across board slowly and gradually picking up their restocking process. But again, I think we are watching the market growth especially for monitor and high monitor, where we enjoy a very good market position. But I have to say the business prospect is not very good for the time being the visibility.

顯示器和筆記本前景更值得懷疑。我是說他們這樣做了，我們的能見度確實有限，儘管我們開始從終端客戶、領先的終端客戶那裡聽到，他們的去庫存過程很可能會在第二季度末得出結論，希望第三季度全線緩慢並逐漸回升他們的進貨過程。但同樣，我認為我們正在關注市場增長，尤其是顯示器和高清顯示器，我們在這方面享有非常好的市場地位。但不得不說，目前的知名度，商業前景不是很好。

And micro OLED, we believe we haven't talked about this in public and in our prepared remarks a lot, but we are actually doing a lot of work for micro OLED, but in short we are a lot more focused on offshore large display micro OLED where we are developing a total very comprehensive solutions covering display drivers, timing controller, PMIC, and others for certain strategic partners and also with various leading panel makers we are working on. For example, ASIC timing controller designs, et cetera. But in the next year or two, this remains niche, very, very small niche market, is an emerging market only and that is why in the interest of time, we have decided not to talk about it too much.

而微型 OLED，我們相信我們並沒有在公開場合和我們準備好的發言中談論很多，但我們實際上正在為微型 OLED 做很多工作，但簡而言之，我們更專注於離岸大型顯示微型OLED，我們正在為某些戰略合作夥伴以及我們正在研究的各種領先面板製造商開發一個非常全面的解決方案，涵蓋顯示驅動器、時序控制器、PMIC 等。例如，ASIC 時序控制器設計等。但在接下來的一兩年裡，這仍然是一個小眾市場，非常非常小的小眾市場，只是一個新興市場，這就是為什麼為了時間的關係，我們決定不過多談論它。

Our view on very small displays, for example, AR, VR related micro OLED application, our view is a lot more negatives for a lot of technical reasons. That is our view. So we are putting a lot less resources into them, although they are inquiries from our customers for development. But we are a lot more hesitant and conservative in that regard. So for micro OLED, our focus will be in at large displays and surely in the next few quarters, we will give people a lot more updates as our developments unfold into a more mature stage. But our -- we are not very much into small size AR, VR kind of micro OLED because we are not talking about such technologies prospect.

我們對非常小的顯示器的看法，例如 AR、VR 相關的微型 OLED 應用，由於很多技術原因，我們的看法更加消極。這是我們的看法。所以我們投入的資源要少得多，儘管他們是我們客戶要求開發的。但在這方面，我們更加猶豫和保守。因此，對於微型 OLED，我們的重點將放在大型顯示器上，並且肯定會在接下來的幾個季度中，隨著我們的發展進入更成熟的階段，我們將為人們提供更多更新。但是我們——我們不太關注小型 AR、VR 類的微型 OLED，因為我們不是在談論此類技術的前景。

(Operator Instructions) Our next question comes from Jason [Tan]with CLSA. Your line is now open.

（操作員說明）我們的下一個問題來自 CLSA 的 Jason [Tan]。您的線路現已開通。

My first question is, can you give us some details on your pricing trend in coming quarters? Do we plan to lower the maybe wafer price or packaging price in coming quarters or in Q1? I mean, maybe for your non-LTA shipment? Thank you.

我的第一個問題是，您能否詳細介紹一下未來幾個季度的定價趨勢？我們是否計劃在未來幾個季度或第一季度降低晶圓價格或封裝價格？我的意思是，也許是為了您的非 LTA 裝運？謝謝。

Whether is LTA or non-LTA, I think our foundry partners have made it rather public that they are not about to, in any meaningful way lower this price in this year. And I think the reasoning is quite simple. They are seeing high inventory levels across the port, which their customer need design houses. So by lowering the price, they are unlikely to stimulate the demand. So why bother? So whether it is LTA regulated price or non-LTA finding price, we are not anticipating the display price from foundry to go down in any meaningful way this year. However, when it comes to good new orders I think their doors are always open for specific deal by deal, case by case negotiations. Right? So that is first point about the -- on the supply side.

無論是 LTA 還是非 LTA，我認為我們的代工合作夥伴已經公開表示他們不會在今年以任何有意義的方式降低這個價格。我認為原因很簡單。他們看到整個港口的庫存水平很高，而他們的客戶需要設計公司。因此，通過降低價格，他們不太可能刺激需求。那麼為什麼要打擾呢？因此，無論是 LTA 監管價格還是非 LTA 發現價格，我們預計今年代工廠的顯示價格不會以任何有意義的方式下降。然而，當涉及到好的新訂單時，我認為他們的大門總是敞開的，以便逐筆交易、逐案談判。正確的？所以這是關於供應方面的第一點。

On the demand side, there are, I would say three points I want to mention. One, there are indeed overall price pressure upon us, because the economy, the overall economy, the macro factor is just very bearish and we have all seen our panel customers are losing money. Right? In a rather meaningful way. So I think they are under a lot of cost pressure as well. So such pressure will to some extent be transferred to us. And certainly, I mean, we were not agreed to all their price demands, and there will be a lot of negotiations, but there are some, indeed some price pressure. That is my first point.

在需求方面，我想說三點。第一，我們確實存在整體價格壓力，因為經濟，整體經濟，宏觀因素非常悲觀，我們都看到我們的面板客戶正在虧損。正確的？以一種相當有意義的方式。所以我認為他們也承受著很大的成本壓力。所以這種壓力一定程度上會轉移到我們身上。當然，我的意思是，我們沒有同意他們所有的價格要求，並且會有很多談判，但確實存在一些價格壓力。這是我的第一點。

And my second point is, the products with excess inventory. I'm talking about mainly smartphone TDDI followed by (inaudible) TDDI, primarily in these two areas where across the board we are seeing our peers are having certainly pretty meaningful excess inventory. So, and the demand is, the demand is ability is not positive either, right? So there will be price competition in order to offload everybody's inventory level. So that is certainly a price pressure. And we are taking a similar position, right? And not to mention, the inventory will prepare when our cost were as we peak. So the gross margin over here, certainly another pretty in the foreseeable future. So that -- all these have been factored in to our guidance or our prospect for the whole year now. So that is the second question.

我的第二點是庫存過剩的產品。我說的主要是智能手機 TDDI，其次是（聽不清）TDDI，主要是在這兩個領域，我們看到我們的同行在這兩個領域肯定有非常有意義的過剩庫存。所以，需求是，需求是能力也不是積極的，對吧？因此，為了降低每個人的庫存水平，將會出現價格競爭。所以這肯定是價格壓力。我們採取類似的立場，對吧？更不用說，庫存將在我們的成本達到峰值時準備好。所以這裡的毛利率，在可預見的未來肯定是另一個漂亮的。所以——所有這些都已被納入我們的指導或我們對全年的展望。這是第二個問題。

And however, there are other areas where the pricing environment is a lot more healthy. For example, our automotive sector, I talked about the demand and our revenue decline over the last few quarters, but even during those quarters, the price erosion, the extent of price erosion was nothing to compare with. The same for smartphone and tablet. Smartphone automotive was -- has been a lot more stable. And I think we are seeing the same throughout this year, the rest of this year, as we anticipate, as I said earlier, good rebound starting from the second quarter and certainly second half versus the first half. And TDDI certainly we are seeing very strong demand. So there are in this field certain sectors where the price environment is relatively healthy.

然而，還有其他領域的定價環境要健康得多。例如，我們的汽車行業，我談到了過去幾個季度的需求和我們的收入下降，但即使在那些季度，價格侵蝕，價格侵蝕的程度也無法與之相比。智能手機和平板電腦也一樣。智能手機汽車是 - 已經穩定得多。我認為我們在今年全年和今年餘下時間都看到了同樣的情況，正如我們預期的那樣，正如我之前所說，從第二季度開始的良好反彈，當然是下半年與上半年的反彈。 TDDI 當然我們看到了非常強勁的需求。因此，在該領域中，某些行業的價格環境相對健康。

Our unique timing controller, our WiseEye certainly is unique product areas and some other things, AMOLED as well, more stable comparative. So I would say, last year we suffered quite a bit for large display driver because the market was just not very good. And ditto for smartphone and tablet, TDDI and the bearish environment has still lingers on for smartphone and tablet TDDI, while large panel has been stabilizing, I would say. Does that address your question, Jason?

我們獨特的時序控制器，我們的WiseEye當然是獨特的產品領域和其他一些東西，AMOLED也是如此，比較穩定。所以我想說，去年我們在大型顯示驅動器方面遭受了很多損失，因為市場不是很好。智能手機和平板電腦也是如此，TDDI 和智能手機和平板電腦 TDDI 的看跌環境仍然存在，而大面板一直在穩定，我想說。這是否解決了你的問題，傑森？

And my second question is, during this down cycle, especially demand weakness, do we also see market competitions? I mean, maybe market share pressures for our large display or small display side?

我的第二個問題是，在這個下行週期中，尤其是需求疲軟時，我們是否也看到市場競爭？我的意思是，也許我們的大型顯示器或小型顯示器方面存在市場份額壓力？

I think the pressure comes primarily on large display first. Our strategy has been, I cannot say there's no such pressure coming from competition, but our strategy for TV has been to form a strong partnership directly with the leading end customer, with the leading end brand customer for their relatively higher models. And certainly even with that we are still subject to certain fluctuations, but I think the competition is a lot less compared to the mainstream TV models vis-à-vis general panel maker customers or mainstream monitor or notebook models.

我認為壓力首先來自於大型顯示器。我們的策略是，我不能說沒有來自競爭的壓力，但我們的電視策略是直接與領先的終端客戶建立強大的合作夥伴關係，與領先的終端品牌客戶建立相對更高的型號。當然，即便如此，我們仍然會受到某些波動的影響，但我認為與主流電視型號相比，相對於一般面板製造商客戶或主流顯示器或筆記本電腦型號，競爭要小得多。

For monitor and notebook, what's interesting to note is that leading, certain leading end customers, especially the Americans are facing the struggle in between the U.S. and China are hedging the effects by asking their supply chain to be away from China and that certainly benefits us somewhat. But certainly, we are also working very hard with our Chinese ecosystem and suppliers. But there seems be although panel makers are still predominantly Chinese, but when it comes to the components, especially IC components, there is still such discussion. So I think our -- certainly we will shift our focus from more towards leading non-China end customers.

對於顯示器和筆記本電腦，有趣的是，一些領先的、某些領先的終端客戶，尤其是美國人正面臨中美之間的鬥爭，他們通過要求他們的供應鏈遠離中國來對沖影響，這當然對我們有利有些。但當然，我們也在努力與我們的中國生態系統和供應商合作。但似乎有，雖然面板製造商仍然以中國人為主，但談到元器件，尤其是IC元器件，仍然存在這樣的討論。所以我認為我們 - 當然我們會將我們的重點從更多地轉向領先的非中國終端客戶。

Although we are all dealing with mainly Chinese panel makers, but leading non-China end customers and less on Chinese end customers. I'm talking about large panel, whether it's TV, notebook or monitor, I'm talking about large panel. So I think there appears to be this trend and actually, it's not coincidence, but we, you know before the two governments struggle becomes apparent, before this we have actually strategized ourselves as much by focusing, you know facing shortage, so we do make a choice, we need to bet on certain customers and in a way bet against certain other customers. And we have been strategizing our sales by forming partnerships within international end customers. So, such strategy kind of plays well when it comes to this new development in between China and the U.S.

雖然我們都主要與中國面板製造商打交道，但主要是非中國終端客戶，中國終端客戶較少。我說的是大面板，不管是電視、筆記本還是顯示器，我說的都是大面板。所以我認為似乎有這種趨勢，實際上，這不是巧合，但我們，你知道，在兩國政府的鬥爭變得明顯之前，在此之前，我們實際上已經通過集中精力製定了自己的戰略，你知道面對短缺，所以我們確實做到了作為一種選擇，我們需要押注某些客戶，並以某種方式押注某些其他客戶。我們一直在通過與國際終端客戶建立合作夥伴關係來製定銷售戰略。因此，對於中美之間的這一新發展，這種策略起到了很好的作用。

And my last question is, I know that LTPS, LCD now it's migrate -- is improving on the automotive applications. So do we, can we expect that this kind of migration can boost the adoption rate on the automotive TDDI?

我的最後一個問題是，我知道現在正在遷移的 LTPS、LCD 正在改進汽車應用。那麼我們是否可以期望這種遷移能夠提高汽車 TDDI 的採用率？

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 (inaudible) poly panels as opposed to, I mean the traditional (inaudible) 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.

是的，的確，隨著分辨率變得更高，刷新率變得更高，觸摸面板，如果你使用我們的面板，你基本上知道，我認為高端花式面板是（聽不清）聚面板的趨勢，而不是，我的意思是傳統（聽不清）矽面板確實具有成本優勢，但當涉及到更高端、更高分辨率、更高更新面板時，現在多晶矽面板確實具有優勢，我們看到許多首批項目與我們的 TDDI 解決方案齊頭並進，是的.

And so I have one follow up question, do we have penetration rate of automotive TDDI? Is that some kind of, is kind of number?

所以我有一個後續問題，我們有汽車 TDDI 的滲透率嗎？那是某種數字嗎？

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%.

對於汽車行業，我沒有手頭的數字，但我之前確實提到過，去年僅奇景光電一家，汽車 TDDI 就占我們汽車總銷售額的 17% 左右。因此，就 ASP 而言，汽車 TDDI 略高於傳統 DDIC，但就收入百分比而言與 TDDI 類似。但是，請記住，我們的數字遠高於我們認為低於 10% 的行業平均水平。

Below 10%. Okay.

低於 10%。好的。

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.

低於 10%，是的，所以我會說我們的，這個數字可能是行業平均水平的兩倍，當然我們預計這個數字會增加。它不會像過去幾年我們在智能手機和平板電腦上看到的那樣引人注目。但我提到了 Himax 我們的銷售額，我們預計到 2025 年或 2026 年，這一數字將從去年的 17% 左右增加到 40% 或以上。所以這對我們來說肯定是一項主要業務，是的。

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

我現在沒有進一步的問題。我現在想把會議轉回約旦作閉幕詞。

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.

最後一點，我們的首席投資者關係和公關官 Eric Li 將繼續開展投資者營銷活動，並繼續參加投資會議。我們將在細節出現時公佈。謝謝你，祝你有美好的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。