奇景光電 (HIMX) 2024 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Himax Technologies, Inc. First Quarter 2024 Conference Call. (Operator Instructions). Please be advised that today's conference is being recorded. And at this time, I'd like to hand the conference over to your host, Mr. Mark Schwalenberg from MZ Group. Please go ahead.

美好的一天，感謝您的支持。歡迎參加奇景光電 2024 年第一季電話會議。 （操作員說明）。請注意，今天的會議正在錄製中。這次，我想把會議交給你們的東道主，來自 MZ 集團的 Mark Schwalenberg 先生。請繼續。

Welcome, everyone, to the Himax First Quarter 2024 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.

歡迎大家參加奇景光電 2024 年第一季財報電話會議。加入我們公司的還有總裁兼執行長吳喬丹先生；潘潔女士，財務長；以及首席 IR/PR 長 Eric Li 先生。

After the company's prepared comments, we've allocated time for questions in a Q&A session. If you have not yet received a copy of today's results release, please e-mail himx@mzgroup.us, access the press release on financial portals or download a copy from Himax's website at www.himax.com.tw.

在公司準備好意見後，我們在問答環節分配了提問時間。如果您尚未收到今天的業績發布副本，請發送電子郵件至 hisx@mzgroup.us、訪問金融入口網站上的新聞稿或從奇景網站 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.

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聲明，包括有關預期未來財務業績和行業增長的聲明，都是前瞻性聲明，涉及許多風險和不確定性，這些風險和不確定性可能會影響您的投資決策。

A list of the factors can be found in the company's SEC filings, Form 20-F for the year ended December 31, 2023, in the section entitled Risk Factors as may be amended. Except for the company's full year of 2023 financials, which were provided in the company's 20-F and filed with the SEC on April 2, 2024. The financial information included in this conference call is unaudited and consolidated and prepared in accordance with IFRS accounting.

這些因素的清單可以在該公司向 SEC 提交的文件（截至 2023 年 12 月 31 日的年度的 20-F 表）標題為「可能會修訂的風險因素」的部分中找到。除本公司2023 年全年財務資料外，此財務資料在本公司20-F 中提供並於2024 年4 月2 日向SEC 備案。編制。

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

此類財務資訊是內部產生的，並未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，我們的年度合併財務報表必須遵守這些審查和審查，並且可能與經審計的合併財務資訊有重大差異。本公司不承擔公開更新或修改任何前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。我現在想把電話轉給Eric Li先生。艾瑞克，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 will first review Himax consolidated financial performance for the first quarter 2024, followed by our second quarter 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 an IFRS basis.

謝謝你，馬克，也謝謝大家加入我們。我是 Eric Li，奇景光電首席 IR/PR 長。在今天的電話會議上，我將首先回顧奇景光電 2024 年第一季的綜合財務業績，然後是我們對第二季的展望。然後喬丹將介紹我們業務的最新狀況，然後我們將回答問題。我們將根據國際財務報告準則審查我們的財務狀況。

We are pleased to report that Q1 revenue, gross margin and profit all exceeded guidance issued on February 6, 2024, despite the seasonal downturn as well as ongoing macro headwinds. The better-than-expected financial results primarily stemmed from strong order momentum in our automotive and the Tcon product line, coupled with cost improvements and a favorable product mix.

我們很高興地報告，儘管季節性低迷以及持續的宏觀阻力，第一季收入、毛利率和利潤均超出了 2024 年 2 月 6 日發布的指引。優於預期的財務表現主要源自於我們的汽車和 Tcon 產品線的強勁訂單勢頭，加上成本改善和有利的產品組合。

First quarter revenues registered $207.6 million, a decrease of 8.8% sequentially, exceeding our guidance range of 9% to 16% decline. Gross margin came in at 29.3%, outperforming our guidance of around 28.5%. Q1 profit per diluted ADS was $0.071, surpassing the guidance range of $0.02 to $0.05.

第一季營收為 2.076 億美元，季減 8.8%，超出了我們 9% 至 16% 的指導範圍。毛利率為 29.3%，超出我們約 28.5% 的指導。第一季稀釋後每股美國存託憑證利潤為 0.071 美元，超出了 0.02 至 0.05 美元的指導範圍。

Revenue from large display drivers decreased 7% sequentially to $31.3 million due to seasonally soft macroeconomic conditions compounded by ongoing production and inventory control measures by our leading panel customers. Consequently, our sales of TV and monitor ICs declined sequentially. However, notebook IC sales saw a nice double-digit increase quarter-over-quarter, as customers accelerated their purchases after several quarters of destocking. Sales of large panel driver ICs accounted for 15.1% of total revenues for the quarter, compared to 14.8% last quarter and 21.7% a year ago.

由於宏觀經濟季節性疲軟，加上我們領先的面板客戶持續採取的生產和庫存控制措施，大型顯示器驅動器的收入比上一季下降 7% 至 3,130 萬美元。因此，我們的電視和顯示器IC 的銷售額連續下降。然而，筆記型電腦IC銷售額環比出現兩位數增長，原因是客戶在幾個季度的去庫存後加速了採購。大面板驅動IC的銷售額佔本季總營收的15.1%，而上季為14.8%，去年同期為21.7%。

Small and medium-sized display driver segment revenue reached $144.3 million, a sequential decline of 11.5%. The better-than-guidance result was fueled by strong sales in DDIC for automotive and OLED tablets. Driven by rush orders for traditional DDIC, Q1 automotive driver sales, encompassing both traditional DDIC and TDDI, experienced a single-digit decline, outperforming the guidance of a mid-teens decline.

中小型顯示器驅動器部門營收達1.443億美元，季減11.5%。汽車和 OLED 平板電腦 DDIC 的強勁銷售推動了好於指導的結果。在傳統 DDIC 緊急訂單的推動下，第一季汽車驅動器銷售（包括傳統 DDIC 和 TDDI）均出現個位數下降，超出了 15% 左右的降幅指引。

Meanwhile, automotive TDDI sales continued to defy the industrial downturn and increased sequentially, thanks to our robust pipeline of design-win projects. The automotive business, including traditional DDIC, TDDI, Tcon and OLED sales, remained the largest revenue contributor in first quarter representing around 46% of total sales. Q1 smartphone IC sales declined sequentially but exceeded guidance, fueled by rush orders from leading customers. Conversely, tablet driver sales declined as expected amidst the typical low season characterized by sluggish demand.

同時，由於我們強大的設計獲勝項目管道，汽車 TDDI 銷售額繼續克服工業低迷的影響並連續增長。汽車業務（包括傳統 DDIC、TDDI、Tcon 和 OLED 銷售）仍然是第一季最大的收入貢獻者，約佔總銷售額的 46%。第一季智慧型手機 IC 銷售額環比下降，但在主要客戶的緊急訂單推動下超出了預期。相反，在需求低迷的典型淡季中，平板電腦驅動器的銷售量如預期下降。

The small and medium-sized driver IC segment accounted for 69.5% of total sales for the quarter compared to 71.6% in the previous quarter and 63.3% a year ago.

中小型驅動IC領域佔本季總銷售額的69.5%，而上一季為71.6%，去年同期為63.3%。

First quarter nondriver sales exceeded guidance, reaching $32 million, an increase of 3.4% from the previous quarter. The better-than-expected performance is attributable to a resurgence in order for large-sized display Tcon products. In the realm of automotive Tcon, the adoption of our automotive local dimming Tcon continues to rapidly expand, as evidenced by increasing number of project awards from numerous Tier-1s for the new vehicle project of their OEM customers around the world. This sets the stage for robust sales growth in the coming years. Non-driver products accounted for 15.4% of total revenues, as compared to 13.6% in previous quarter and 15% a year ago.

第一季非駕駛員銷售額超出預期，達到 3,200 萬美元，比上一季成長 3.4%。業績優於預期，得益於大尺寸顯示Tcon產品訂單的復甦。在汽車 Tcon 領域，我們的汽車局部調光 Tcon 的採用持續快速擴大，全球眾多一級供應商為其 OEM 客戶的新車項目授予的項目數量不斷增加就證明了這一點。這為未來幾年的強勁銷售成長奠定了基礎。非驅動產品佔總營收的 15.4%，而上一季為 13.6%，一年前為 15%。

First quarter operating expenses were $50.7 million a decrease of 3.1% from the previous quarter and a decline of 0.6% from a year ago. Given the persistent macroeconomic headwinds, we continue to be diligent with strict budget and expense control measures. First quarter operating income was $10 million or 4.8% of sales, compared to 7.2% of sales for the same period last year and 7.3% of sales last quarter. The decreases in operating margin were primarily driven by lower sales. The sequential decrease was also attributed to lower gross margin. However, Q2 gross margin is on track to rebound from Q1. First quarter after-tax profit was $12.5 million, or $0.071 per diluted ADS compared to $23.6 million or $0.135 per diluted ADS last quarter and $14.9 million or $0.085 per diluted ADS in the same period of last year.

第一季營運費用為 5,070 萬美元，季減 3.1%，年減 0.6%。鑑於宏觀經濟持續不利，我們繼續嚴格執行預算和費用控制措施。第一季營業收入為 1,000 萬美元，佔銷售額的 4.8%，而去年同期為 7.2%，上季為 7.3%。營業利益率下降主要是因為銷售額下降所致。環比下降也歸因於毛利率下降。然而，第二季毛利率有望較第一季反彈。第一季稅後利潤為1,250 萬美元，或稀釋後每股美國存託股0.071 美元，而上季為2,360 萬美元，或稀釋後每股美國存託股0.135 美元，去年同期為1,490 萬美元，或稀釋後每股美國存託股0.085 美元。

Turning to the balance sheet. We had $277.4 million of cash, cash equivalents and other financial assets at the end of March 2024, compared to $223.8 million at the same time last year and $206.4 million a quarter ago. The increase in cash balance stemmed primarily from continuous destocking efforts across all major product lines.

轉向資產負債表。截至 2024 年 3 月末，我們擁有 2.774 億美元的現金、現金等價物和其他金融資產，而去年同期為 2.238 億美元，上季為 2.064 億美元。現金餘額的增加主要源自於所有主要產品線持續去庫存的努力。

In Q2, however, cash, cash equivalents, and other financial assets are set to decline primarily due to decreasing sales in the previous 2 quarters, resulting in lower Q1 receivables. In addition, accounts payables is expected to increase as a result of the rising Q1 wafer orders placed in preparation for higher shipment volumes starting in Q2. Other significant Q2 cash outflows include annual income tax payments as well as refunds to certain customers for deposit made during the industry-wide capacity supply shortage. As of the end of the first quarter, we had $39 million in long-term unsecured loans, of which $6 million was the recurring portion.

然而，第二季現金、現金等價物和其他金融資產預計將下降，主要原因是前兩季的銷售額下降，導致第一季應收帳款下降。此外，由於第一季晶圓訂單增加，為第二季開始的更高出貨量做準備，預計應付帳款將增加。第二季其他重大現金流出包括年度所得稅支付以及在全行業產能供應短缺期間向​​某些客戶退還押金。截至第一季末，我們擁有 3,900 萬美元的長期無擔保貸款，其中 600 萬美元是經常性部分。

Our quarter end inventories as of March 31, 2024, was $201.9 million, lower than $217.3 million last quarter, yet another illustration of our successful destocking efforts. Accounts receivable at the end of March 2024 was $212.3 million, down from $235.8 million last quarter and down from $252.2 million a year ago. DSO was 93 days at the quarter end, as compared to 91 days last quarter and 93 days a year ago. First quarter capital expenditures was $2.7 million, versus $15.1 million last quarter and $2.8 million a year ago. The first quarter CapEx was mainly for R&D-related equipment and in-house testers of our IC design business.

截至 2024 年 3 月 31 日，我們的季末庫存為 2.019 億美元，低於上季度的 2.173 億美元，這是我們成功去庫存的另一個例證。截至 2024 年 3 月末，應收帳款為 2.123 億美元，低於上季的 2.358 億美元，也低於一年前的 2.522 億美元。季度末的 DSO 為 93 天，而上季為 91 天，去年同期為 93 天。第一季資本支出為 270 萬美元，上季為 1,510 萬美元，去年同期為 280 萬美元。第一季資本支出主要用於IC設計業務的研發相關設備及內部測試器。

Prior to today's call, we announced an annual cash dividend of $0.29 per ADS, totaling $51 million and payable on July 12, 2024, with a payout ratio of 100% of the previous year's profit. The high payout ratio is supported by our positive business outlook, as we pursue business objectives and the strives for sustainable long-term growth and shareholder value while maintaining the healthy balance sheet.

在今天的電話會議之前，我們宣布每年派發每股美國存託憑證0.29美元的現金股息，總額為5100萬美元，將於2024年7月12日支付，派息率為上一年利潤的100% 。高派息率得到了我們積極的業務前景的支持，因為我們追求業務目標並努力實現可持續的長期成長和股東價值，同時保持健康的資產負債表。

As of March 31, 2024, Himax has $174.7 million ADS outstanding, unchanged from last quarter. On a fully diluted basis, the total number of ADS outstanding for the first quarter was $175 million.

截至2024年3月31日，奇景已發行美國存託憑證1.747億美元，與上季持平。在完全攤薄的基礎上，第一季流通在外的美國存託股份總數為 1.75 億美元。

Now turning to our second quarter 2024 guidance. We expect second quarter revenues to increase 8% to 13% sequentially. Gross margin is expected to be around 31.5% to 33.5%, a notable increase from 29.3% of the previous quarter, primarily because of higher sales from automotive and the Tcon business, both of which enjoy both better gross margin than corporate average. The final number may vary depending on product mix.

現在轉向我們的 2024 年第二季指引。我們預計第二季營收將季增 8% 至 13%。毛利率預計在 31.5% 至 33.5% 左右，較上一季的 29.3% 顯著增長，主要是由於汽車和 Tcon 業務的銷售額增加，這兩個業務的毛利率均高於企業平均水平。最終數量可能會根據產品組合而有所不同。

The second quarter profit attributable to shareholders is estimated to be in the range of $0.13 to $0.17 per fully diluted ADS.

第二季股東應占利潤預計為每股完全攤薄後的美國存託股份 0.13 至 0.17 美元。

I will now turn the call over to Jordan to discuss our Q2 outlook. Jordan, the floor is yours.

我現在將把電話轉給喬丹，討論我們第二季度的前景。喬丹，地板是你的。

Thank you, Eric. Amid ongoing macroeconomic uncertainty, customer behavior in the display market remains conservative with panel makers continuing to implement strict outlook control measures amidst the cautious end brand panel procurement environment.

謝謝你，埃里克。在宏觀經濟持續不確定的情況下，顯示器市場的客戶行為仍然保守，面板製造商在謹慎的終端品牌面板採購環境下繼續實施嚴格的前景控制措施。

Given the limited visibility, customers tend to maintain lean inventory levels and underestimate demand, thereby providing us with conservative forecasts, accompanied by last-minute order increases. This trend has persisted over the last 7 consecutive quarters, including Q1, with our actual sales consistently at the upper end of or exceeding our guidance range.

鑑於可見性有限，客戶往往會維持精實庫存水準並低估需求，從而為我們提供保守的預測，並伴隨著最後一刻的訂單增加。這一趨勢在過去連續 7 個季度（包括第一季）持續存在，我們的實際銷售額始終處於或超過我們指導範圍的上限。

As we look ahead to the second half, even with lean inventory levels, we anticipate this conservative market sentiment will persist, causing customers to continue to prioritize agility in response to market dynamics.

展望下半年，即使庫存水準較低，我們預期這種保守的市場情緒將持續存在，導致客戶繼續優先考慮敏捷性以應對市場動態。

With that being said, we believe Q1 will be the low point for this year and see sales starting to pick up in Q2, especially in the automotive sector. With several other upcoming demand catalysts on the horizon, including major sporting events and festival shopping seasons, business momentum is expected to continue to steadily improve throughout the second half.

話雖如此，我們認為第一季將是今年的低點，第二季銷售量將開始回升，尤其是在汽車領域。隨著其他幾個即將到來的需求催化劑的出現，包括重大體育賽事和節日購物季，預計下半年業務勢頭將繼續穩步改善。

Now let me elaborate a bit on the near-term outlook for automotive business, our largest source of revenue. While many semiconductor vendors and their customers, are still going through painstaking destocking processes, our inventory position for automotive sector has become healthy since the end of last year with our panel customers also maintaining low stock levels at present. This is best illustrated by the large quantities of rush orders we received from panel customers over the last 2 months, for which we also had to place rush orders to our foundry vendors.

現在讓我詳細闡述我們最大的收入來源汽車業務的近期前景。雖然許多半導體供應商及其客戶仍在經歷艱苦的去庫存過程，但我們的汽車行業庫存狀況自去年底以來已變得健康，我們的面板客戶目前也維持較低的庫存水準。過去兩個月我們從面板客戶那裡收到的大量緊急訂單就最好地說明了這一點，為此我們也不得不向我們的代工供應商發出緊急訂單。

Therefore, notwithstanding the recent headwinds faced by the global automotive industry, our outlook for the automotive display IC business remains positive for the second half of the year.

因此，儘管全球汽車產業近期面臨逆風，但我們對下半年汽車顯示IC業務的前景仍然樂觀。

The automotive display market is experiencing the mega trend of expanding quantities, sizes and sophistication of displays with the vehicles as fancy displays are increasingly becoming a major selling point for car makers. As the leader in the automotive display IC business, Himax is poised to benefit from this trend, which implies higher content value per vehicle for display semiconductor vendors such as us, leading to sustainable growth slated for the next few years. Our confidence stems from our dominant design-win pipeline in TDDI and lower dimming Tcon, both relatively new and cutting-edge technologies for automotive displays with accelerating volume, a momentum, which is expected to carry on over the next few years.

汽車顯示器市場正在經歷車輛顯示器數量、尺寸和複雜程度不斷擴大的大趨勢，因為精美的顯示器日益成為汽車製造商的主要賣點。作為汽車顯示 IC 業務的領導者，奇景光電準備從這一趨勢中受益，這意味著像我們這樣的顯示半導體供應商每輛車的內容價值更高，從而導致未來幾年的可持續增長。我們的信心源於我們在TDDI 和低調光Tcon 領域的主導設計優勢，這兩種技術都是相對較新的尖端技術，適用於汽車顯示器，產量不斷增加，預計這種勢頭將在未來幾年持續下去。

This will further solidify our position in the market where we are already the leader in the traditional DDIC. Moreover, more customers are adopting Himax's local dimming Tcon along with TDDI or LTDI, as an integral part of their development platform for crafting new automotive displays, reflecting strong customer loyalty for our technology and service.

這將進一步鞏固我們在市場上的地位，我們已經是傳統 DDIC 領域的領導者。此外，越來越多的客戶採用奇景的局部調光 Tcon 以及 TDDI 或 LTDI，作為其開發平台的組成部分來製作新型汽車顯示器，這反映出客戶對我們的技術和服務的強烈忠誠度。

Additionally, we are implementing cost optimization and supplier diversification strategies to enhance supply flexibility and cost-effectiveness, as exemplified by our recent strategic partnership announced with Nexchip for the automotive market.

此外，我們正在實施成本優化和供應商多元化策略，以提高供應靈活性和成本效益，我們最近與 Nexchip 宣布的汽車市場策略合作夥伴關係就是例證。

As Eric mentioned earlier, we just declared our annual cash dividend with a payout ratio of 100% of last year's profit. Our decision for the high dividend payout ratio this year underscores our unwavering commitment to shareholder value, even in the face of uncertain macroeconomic conditions. This not only recognizes the ongoing support of our shareholders, but also demonstrates our confidence in our financial stability.

正如Eric之前提到的，我們剛剛宣布了年度現金分紅，股息率為去年利潤的100%。我們今年的高股息支付率決定凸顯了我們對股東價值的堅定承諾，即使面對不確定的宏觀經濟狀況。這不僅是對股東持續支持的認可，也顯示了我們對財務穩定性的信心。

With that, I will now begin with an update on the large panel driver IC business. In Q2 2024, we anticipate a mid-teens sequential increase in large display driver IC revenue, primarily bolstered by customer restocking following several quarters of muted demand, as well as increasing orders from customers preparing for the upcoming shopping festivals.

接下來，我將先介紹大面板驅動IC業務的最新情況。 2024 年第二季度，我們預計大型顯示器驅動器IC 收入將出現15% 左右的環比增長，這主要得益於客戶在幾個季度的需求低迷後重新進貨，以及客戶為即將到來的購物節做準備的訂單增加。

Q2 TV and monitor IC sales are expected to increase single digit and nice double digit, respectively, quarter-over-quarter. In contrast, notebook IC sales are poised for a decline following strong restocking in the previous quarter. In the notebook market, a burgeoning trend of AI PC is emerging, prompting demand for display upgrades to include touch-enabled features and/or adoption of OLED displays. Himax offers comprehensive offerings in both LCD and OLED technologies, encompassing DDIC, Tcon and touch-related products.

第二季電視和顯示器 IC 銷售額預計將分別較上季成長個位數和兩位數。相比之下，在上一季強勁補貨之後，筆記型電腦 IC 銷售額預計將下降。在筆記型電腦市場，AI PC 的新興趨勢正在興起，促使顯示器升級的需求，包括支援觸控功能和/或採用 OLED 顯示器。 Himax 提供全面的 LCD 和 OLED 技術產品，包括 DDIC、Tcon 和觸控相關產品。

As we look ahead to 2025, the anticipated beginning of replacement cycles, we are well-positioned to capitalize on this opportunity with numerous in-cell TDDI projects for mainstream LCD notebooks, and DDIC and touch controller for OLED notebooks, some of which poised to enter mass production for leading brands in the second half of this year. We believe this will serve as an important growth catalyst for us in notebook and elevate our presence in the market.

展望2025 年，即預期的更換週期開始，我們已做好充分準備，利用這一機會，開展眾多針對主流LCD 筆記型電腦的內嵌式TDDI 項目，以及針對OLED 筆記型電腦的DDIC 和觸控控制器項目，其中一些項目預計今年下半年進入領先品牌量產。我們相信這將成為我們在筆記型電腦領域的重要成長催化劑，並提升我們在市場上的地位。

Turning to the small and medium-sized display driver IC business. We anticipate second quarter revenue to increase single digit sequentially. Automotive IC revenue is expected to grow high teens sequentially, with sales for both DDIC and TDDI poised for sequential growth, despite recent reports of softening electronic vehicles demand. Our leadership position in automotive TDDI remained solid, underscored by the rapidly expanding adoption as demonstrated by more than 450 secured design-win projects, and a continuous influx of new pipeline and design wins across the board.

轉向中小尺寸顯示驅動IC業務。我們預計第二季營收將環比成長個位數。儘管最近有報導稱電動車需求疲軟，但汽車 IC 收入預計將環比增長兩位數，DDIC 和 TDDI 的銷售額預計將環比增長。我們在汽車 TDDI 領域的領導地位依然穩固，超過 450 個已獲得設計勝利的項目以及不斷湧入的新產品線和設計勝利證明了我們的採用迅速擴大。

It's also important to note that only approximately 30% of awarded projects are currently in mass production, as an indication of the potential lucrative growth opportunity, we believe, is yet to be realized.

還需要注意的是，目前只有大約 30% 的獲獎項目處於批量生產狀態，我們認為，這表明潛在的利潤豐厚的成長機會尚未實現。

Automotive TDDI sales are anticipated to represent more than 40% of automotive driver sales in Q2. In contrast, both smartphone and tablet sales are projected to decline quarter-over-quarter, as consumers prolong their replacement cycles in response to the challenging economic environment. To mitigate these sluggish conditions, we have taken steps to improve our cost structure by diversifying our supplier base, to position Himax for resurgence in demand.

預計第二季汽車 TDDI 銷售額將佔汽車驅動器銷售額的 40% 以上。相較之下，隨著消費者為應對充滿挑戰的經濟環境而延長更換週期，智慧型手機和平板電腦的銷售量預計將比去年同期下降。為了緩解這些低迷的狀況，我們已採取措施，透過供應商基礎多元化來改善我們的成本結構，以使奇景能夠應對需求的復甦。

To elaborate further on our automotive IC business, where we have more than 40% market share. Himax offers the industry's most comprehensive LCD product lineup, which includes traditional DDIC and TDDI technologies, alongside cutting-edge LTDI and local dimming Tcon solutions. Moreover, we are actively expanding and bolstering our footprint in OLED with a comprehensive range of products covering DDIC, Tcon and on-cell touch controller while forming strategic alliances with top panel manufacturers in Korea and China. This proactive approach aligns us with the dynamic transformation of the industry towards increasing adoption of OLED displays for high end vehicles.

進一步闡述我們的汽車IC業務，我們在該業務中擁有超過40%的市場份額。 Himax 提供業界最全面的 LCD 產品系列，其中包括傳統的 DDIC 和 TDDI 技術，以及尖端的 LTDI 和局部調光 Tcon 解決方案。此外，我們正積極擴大並加強我們在OLED領域的業務，提供涵蓋DDIC、Tcon和On-cell觸控控制器的全系列產品，同時與韓國和中國的頂級面板製造商結成策略聯盟。這種積極主動的方法使我們能夠順應產業的動態轉型，並不斷增加高端車輛採用 OLED 顯示器的趨勢。

The inherent flexibility of OLED displays to cater to foldable or curved shapes, along with the outstanding visual performance and low power consumption, opens new horizons for automotive interior displays.

OLED 顯示器固有的靈活性，可適應可折疊或彎曲的形狀，以及出色的視覺性能和低功耗，為汽車內裝顯示器開闢了新的視野。

Notably, our meticulously engineered OLED on-cell touch controller sets a new standard as it boasts an industry-leading touch signal-to-noise ratio exceeding 45 dB and offers heightened sensitivity, accommodating challenging user conditions such as glove-wearing and wet-finger operations.

Notably, our meticulously engineered OLED on-cell touch controller sets a new standard as it boasts an industry-leading touch signal-to-noise ratio exceeding 45 dB and offers heightened sensitivity, accommodating challenging user conditions such as glove-wearing and wet-finger營運.

Our comprehensive solution in our automotive LCD and OLED displays address a broad spectrum of customer preferences and requirements, nurturing robust customer loyalty and fostering collaborations with global panel makers, Tier 1 suppliers and automotive manufacturers. We anticipate our automotive business will remain a significant catalyst for our growth moving forward.

我們的汽車 LCD 和 OLED 顯示器綜合解決方案可滿足廣泛的客戶偏好和要求，培養強大的客戶忠誠度並促進與全球面板製造商、一級供應商和汽車製造商的合作。我們預計我們的汽車業務仍將是我們未來成長的重要催化劑。

Next for an update of our OLED business. As I just covered, we have made significant progress in providing solutions for automotive OLED displays, an area with exciting growth potential. We also are expanding into other OLED applications such as tablet, notebook and monitor, through collaborations with leading panel manufacturers in Korea and China, featuring a comprehensive offering, covering DDIC, Tcon and touch controllers. Additional products with new feature enhancements are slated to enter mass production in the second half of 2024.

接下來是我們 OLED 業務的最新情況。正如我剛才所介紹的，我們在為汽車 OLED 顯示器提供解決方案方面取得了重大進展，這是一個具有令人興奮的成長潛力的領域。我們也透過與韓國和中國領先的面板製造商合作，擴展到平板電腦、筆記型電腦和顯示器等其他 OLED 應用領域，提供全面的產品，涵蓋 DDIC、Tcon 和觸控控制器。其他具有新功能增強的產品預計將於 2024 年下半年進入量產。

Regarding smartphone OLED, the current slowdown in smartphone market demand has unfortunately necessitated adjustment to our initial timeline. Nevertheless, collaborations with customers in Korea and China persist, with ongoing verification and partnership projects.

關於智慧型手機 OLED，不幸的是，目前智慧型手機市場需求放緩，需要調整我們最初的時間表。儘管如此，我們仍與韓國和中國的客戶合作，並持續進行驗證和合作專案。

I would like to now turn to our non-driver IC business update. First, for an update on our Tcon business. We anticipate a notable sequential increase of more than 40% in Tcon sales in Q2, propelled by escalating shipments for Tcon in large-sized displays and automotive. Himax has been devoted to developing panel driver ICs and timing controller for decades. We stand as the industry leader in both monitor and automotive Tcons, universally adopted by leading panel makers across the board.

我現在想談談我們的非驅動IC業務的最新情況。首先，了解我們 Tcon 業務的最新情況。我們預計，在大尺寸顯示器和汽車領域 Tcon 出貨量不斷增加的推動下，第二季 Tcon 銷售額將顯著環比成長 40% 以上。奇景數十年來致力於面板驅動IC和時序控制器的開發。我們是顯示器和汽車 Tcons 領域的行業領導者，並被領先的面板製造商普遍採用。

In the monitor Tcon sector, Himax excels in the high-end market, especially in gaming, where intricate designs are required for high resolution, high refresh rate and low latency display performance, crucial for achieving immersive gaming and entertainment experiences. In the automotive Tcon domain, our leading position remains unchallenged, boasting well over 100 design-win projects, powered by our cutting-edge local dimming technology along with our industry-leading proprietary algorithm.

在顯示器Tcon領域，奇景在高階市場表現出色，尤其是在遊戲領域，高解析度、高更新率和低延遲的顯示效能需要複雜的設計，這對於實現沉浸式遊戲和娛樂體驗至關重要。在汽車 Tcon 領域，我們的領先地位仍然無可挑戰，擁有超過 100 個設計獲勝項目，這些項目均由我們尖端的局部調光技術以及行業領先的專有演算法提供支援。

The incorporation of local dimming Tcon not only significantly enhances the display's contrast ratio but also offers improved power efficiency, particularly crucial for EV and large-sized displays. Our industry-leading local dimming Tcon solutions support super high frame rates and a wide range of resolutions from full HD to up to 8K. We are encouraged by the rapidly expanding validation and widespread deployment of our solutions initially in customers' premium car models, which have been expanded into mainstream models worldwide.

局部調光 Tcon 的結合不僅顯著提高了顯示器的對比度，而且還提高了電源效率，這對於電動車和大尺寸顯示器尤其重要。我們業界領先的局部調光 Tcon 解決方案支援超高幀速率和從全高清到高達 8K 的各種解析度。我們的解決方案最初在客戶的高端車型中得到迅速擴大的驗證和廣泛部署，現已擴展到全球主流車型，這讓我們深受鼓舞。

In the second quarter, automotive Tcons are anticipated to grow more than 30% sequentially, representing more than -- around 3% rather of total sales. From a longer-term perspective, the growing traction of our local dimming Tcon for automotive is on track to mirror the success of our automotive TDDI over the last couple of years.

第二季度，汽車 Tcons 預計將環比成長 30% 以上，佔總銷售額的 3% 左右。從長遠來看，我們汽車局部調光 Tcon 的吸引力不斷增長，這將反映我們汽車 TDDI 在過去幾年中所取得的成功。

Switching gears to the WiseEye Ultralow Power AI Sensing solution, a cutting edge endpoint AI integration featuring proprietary ultra-low power AI processors, always-on CMOS image sensors and advanced CNN-based AI algorithms.

轉向 WiseEye 超低功耗 AI 感測解決方案，這是一種尖端端點 AI 集成，具有專有的超低功耗 AI 處理器、始終在線的 CMOS 影像感測器和基於 CNN 的先進 AI 演算法。

In the rapidly evolving AI landscape, WiseEye AI technology stands out for its expertise in on-device tinyML solutions and unique ultra-low power consumption, measuring merely single-digit milliwatts. This opens the door for battery-powered endpoint devices to incorporate AI sensing for intuitive and intelligent user interaction, something that would otherwise be impossible without such extremely low power consumption AI.

在快速發展的人工智慧領域，WiseEye AI 技術因其在設備端tinyML 解決方案方面的專業知識和獨特的超低功耗（測量值僅為個位數毫瓦）而脫穎而出。這為電池供電的端點設備整合人工智慧感測以實現直覺和智慧的用戶互動打開了大門，如果沒有如此極低功耗的人工智慧，這是不可能實現的。

For instance, in smart door locks, which are typically battery-powered device, China's leading high-end door lock maker DESMAN, harnessing Himax's ultra-low power WiseEye AI technology, created the world first smart door lock products that feature 24/7 sentry monitoring and real-time event recordings.

例如，在智慧門鎖這典型的電池供電設備中，中國領先的高端門鎖製造商德斯曼利用奇景超低功耗WiseEye AI技術，打造了全球首款具有24/7哨兵功能的智能門鎖產品監控和即時事件記錄。

Our WiseEye total solution for DESMAN, boasts an exceptionally low power draw of just 2.2 milliwatts representing a novel and highly advantageous features with minimal impact on battery life. The potent AI inherent in WiseEye allows the door lock camera to capture snapshots periodically on a 24/7 basis and when detecting human presence, immediately start recording while concurrently waking up the door lock's much higher power consuming main processor. The result, it's a comprehensive event recording for seamless threat protection that better ensures security, while mitigating potential breaches, all achieved with a battery-powered door lock.

我們的 DESMAN WiseEye 整體解決方案功耗極低，僅 2.2 毫瓦，具有新穎且極具優勢的功能，對電池壽命的影響極小。 WiseEye 固有的強大人工智慧功能使門鎖相機能夠 24/7 定期捕捉快照，當偵測到有人存在時，立即開始錄製，同時喚醒門鎖功耗更高的主處理器。結果，它是一個全面的事件記錄，可實現無縫威脅防護，更好地確保安全，同時減少潛在的違規行為，所有這些都是透過電池供電的門鎖實現的。

By working with ecosystem partners and customers, we are expanding WiseEye AI applications aggressively, covering new areas, including, but not limited to smart home, smart agriculture, automotive, smart office, AMR nor automatic meter reading, healthcare and a wide range of other AIoT applications.

透過與生態系統合作夥伴和客戶合作，我們正在積極擴展WiseEye AI應用，涵蓋新領域，包括但不限於智慧家庭、智慧農業、汽車、智慧辦公室、AMR或自動抄表、醫療保健以及其他廣泛的領域AIoT應用。

To broaden our market reach and help shorten customers' development cycles, we also offer seamless decisions integrated, plug-and-play WiseEye modules. These modules enable no-code/low-code AI development, while providing building context-aware AI algorithms, which are reprogrammable for the customer. Within a few months of this launch, WiseEye modules have been successful -- have seen successful adoption in battery-powered parking systems across Asia as well as applications in fleet management, occupancy sensing, pet tracking, people flow sensing, access control, among others.

為了擴大我們的市場範圍並幫助縮短客戶的開發週期，我們還提供無縫決策整合、即插即用的 WiseEye 模組。這些模組支援無程式碼/低程式碼人工智慧開發，同時提供建構上下文感知人工智慧演算法，這些演算法可供客戶重新編程。在推出後的幾個月內，WiseEye 模組取得了成功——已成功應用於亞洲各地的電池供電停車系統以及車隊管理、佔用感應、寵物追蹤、人流感應、門禁控制等領域的應用。

Moreover, for companies with their own AI expertise we provide hands-on open source AI frameworks, tool chains, and robust AI models to streamline development efforts and reduce cost and lead time for AI development or AI product introduction.

此外，對於擁有自己的人工智慧專業知識的公司，我們提供實用的開源人工智慧框架、工具鍊和強大的人工智慧模型，以簡化開發工作並降低人工智慧開發或人工智慧產品推出的成本和交付時間。

This year at the ISC West, a leading U.S. trade show for the security industry, Himax unveiled WiseEye Palm Vein technology and ultra-low power contactless biometric authentication solution, powered by the advanced WiseEye 2 AI processor, WiseEye Palm Vein can swiftly authenticate an individual's identity in less than 100 milliseconds while consuming merely milliwatts of power. In both exceptional accuracy, enhancing security by minimizing the risk of duplication or spoofing through the distinct palm vein presence unique to every individual. The solution targets battery-powered access control devices for a small group of authorized individuals. Having only launched recently, WiseEye Palm Vein technology has already attracted interest for applications such as automotive, door lock, surveillance, laptop and more.

今年在美國領先的安防產業展會ISC West上，奇景光電推出了WiseEye掌靜脈技術和超低功耗非接觸式生物辨識認證解決方案，搭載先進的WiseEye 2 AI處理器，WiseEye掌靜脈可以快速驗證個人的身份資訊。憑藉卓越的準確性，透過每個人獨有的獨特手掌靜脈存在，最大限度地降低複製或欺騙的風險，從而增強安全性。此解決方案的目標是為一小群授權個人提供電池供電的存取控制設備。 WiseEye 掌靜脈技術最近才推出，已經引起了汽車、門鎖、監控、筆記型電腦等應用的興趣。

We are actively accelerating verification and partnership projects in these areas and are enthusiastic about the potential for WiseEye Palm Vein authentication, that marks a significant breakthrough in the industry.

我們正在積極加速這些領域的驗證和合作項目，並對 WiseEye 掌靜脈認證的潛力充滿熱情，這標誌著業界的重大突破。

Next, for an update of our LCoS Microdisplay technology. At the upcoming Display Week 2024 in May in San Jose, California, Himax will unveil its groundbreaking ultra-luminous, new generation Color Sequential Front-Lit LCoS Microdisplay, capable of achieving a brightness of up to 250,000 nits. This represents a notable 2.5-fold increase from its predecessor announced at the Display Week 2023, while maintaining low power consumption of just 300 milliwatts.

接下來是我們的 LCoS 微顯示技術的更新。在即將於 5 月於加州聖荷西舉行的 2024 年顯示週上，奇景光電將推出其突破性的超發光新一代彩色順序前照式 LCoS 微顯示器，亮度高達 250,000 尼特。這比 2023 年顯示週上宣布的前代產品顯著增加了 2.5 倍，同時保持了僅 300 毫瓦的低功耗。

Additionally, thanks to its compact form factor of just 0.5 cc in volume, when incorporating both illumination optics and the LCoS panel, stylish and everyday-ready AR glasses are becoming a reality. While volume commercialization of AR glasses targeting the general public may still take several years.

此外，由於其體積僅為 0.5 cc 的緊湊外形，當結合照明光學元件和 LCoS 面板時，時尚且適合日常使用的 AR 眼鏡正在成為現實。而針對一般大眾的 AR 眼鏡的批量商業化可能仍需要數年時間。

We are proud that Himax's new-generation Color Sequential Front-Lit LCoS stands as the sole viable solution in the marketplace for authentic see-through AR glasses, delivering unparalleled brightness, power consumption, form factor, display quality and mass production readiness. Collaborations with leading tech companies worldwide are on the rise solidifying Himax's position, as the leader in the field.

我們感到自豪的是，Himax 的新一代彩色順序前照式LCoS 是真正的透明AR 眼鏡市場上唯一可行的解​​決方案，可提供無與倫比的亮度、功耗、外形尺寸、顯示品質和批量生產準備。與全球領先科技公司的合作不斷增加，鞏固了奇景作為該領域領導者的地位。

For non-driver IC business, we expect revenue to increase double digit sequentially in the second quarter. That concludes my report for this quarter. Thank you for your interest in Himax. We appreciate you joining today's call and are now ready to take questions.

對於非驅動IC業務，我們預計第二季營收將季增兩位數。我本季的報告到此結束。感謝您對奇景光電的關注。我們感謝您參加今天的電話會議，現在準備好回答問題。

(Operator Instructions). Our first question comes from the line of Frank Wang with Athena Capital.

（操作員說明）。我們的第一個問題來自Athena Capital的Frank Wang。

My first question is on the auto business. (inaudible) instruments, [NHP], UMC, TSMC indicate some softness in auto...

我的第一個問題是關於汽車業務的。 （聽不清楚）儀器、[NHP]、UMC、TSMC 顯示汽車產業有些疲軟…

We can't hear you, Frank.

我們聽不到你的聲音，法蘭克。

Okay. Can you hear me now?

好的。你聽得到我嗎？

Frank, we can hear you. I'm going to actually remove you and then repromote you because it seems like the team with Jordan and Eric are unable to hear you. So please stand by.

法蘭克，我們聽得到你的聲音。我實際上要把你除名，然後重新提拔你，因為喬丹和艾瑞克的團隊似乎聽不到你的聲音。所以請耐心等待。

Frank, we have brought you online again. Please proceed and confirm that the team with Eric and Jordan and team can hear you.

法蘭克，我們又讓你上線了。請繼續並確認 Eric 和 Jordan 團隊以及其他團隊可以聽到您的聲音。

The first question is on the auto sector. [Texas] Instruments [NHP], TSMC, UMC indicate some softness in the auto sector. What is your view? And why are these leading semiconductor companies seems to be more pessimistic on the auto sector, while you are expecting a decent quarter-over-quarter growth in the auto sector.

第一個問題是關於汽車產業的。 [Texas] Instruments [NHP]、TSMC、UMC 顯示汽車產業有些疲軟。你的看法是什麼？為什麼這些領先的半導體公司似乎對汽車行業更加悲觀，而您卻預計汽車行業將出現不錯的季度環比增長。

Frank, it seems the team is still unable to hear you. So we're going to bring you back and then try again. We're going to prompt for questions, hold on.

弗蘭克，看來團隊仍然聽不到你的聲音。所以我們會把你帶回來，然後再試一次。我們將提示提問，請稍等。

Can you hear, Frank?

你聽得到嗎，弗蘭克？

I can hear you fine.

我聽得很清楚。

We can hear Frank and the rest of the people can't. I don't know why the folks in your room are not able to hear him.

我們可以聽到弗蘭克的聲音，而其他人則聽不到。我不知道為什麼你房間裡的人聽不到他的聲音。

That is very weird.

這很奇怪。

That's all right. I've got another person coming to assist on this. We're going to keep Frank in questions. Please, thank everyone, for your patience. Crystal, thank you for coming in to assist. Everyone can hear, Frank, except for Eric's line where the group is gathered.

沒關係。我有另一個人來協助處理這件事。我們要讓弗蘭克繼續提問。謝謝大家的耐心等待。水晶，謝謝你過來幫忙。弗蘭克，每個人都可以聽到，除了埃里克聚集在一起的線路。

Well, Mr. Operator can you relay the question of Frank to us because we can clearly hear you. And we are assuming you can hear us. I'm assuming everybody can hear us and it appears that everybody hear Frank, except for us. I don't know why. So if you can talk on Frank's question to us, then we can respond to the question.

好吧，接線員先生，您可以將弗蘭克的問題轉達給我們嗎，因為我們可以清楚地聽到您的聲音。我們假設您能聽到我們的聲音。我假設每個人都能聽到我們的聲音，而且似乎每個人都聽到了弗蘭克的聲音，除了我們。我不知道為什麼。因此，如果您能向我們談論弗蘭克的問題，那麼我們就可以回答這個問題。

I can do my best. He asked a lot of information.

我可以盡力而為。他詢問了很多資訊。

So let me set up one more time. So the first question is regarding the auto sector. Himax is more optimistic, expecting a very good growth for the second quarter, but other companies -- semiconductor companies are expecting some softness. So I want the view -- how is that different?

那麼就讓我再安排一次吧。第一個問題是關於汽車產業的。奇景光電則更為樂觀，預計第二季將出現非常好的成長，但其他公司——半導體公司則預期會出現一些疲軟。所以我想要這個視圖——有什麼不同嗎？

So what is the view from Himax in terms of the auto sector, Frank asked some pieces about there was some softness. So I'm doing my best to relay information.

那麼奇景光電對汽車產業的看法如何，Frank 詢問了一些關於汽車產業疲軟的問題。所以我會盡力傳遞訊息。

Okay. I think I got the answer to the question. Yes, that is the question. So I suppose the question from Frank, again, I apologize for some system reasons, we cannot hear it. But relay from the operator appears to be that the industry is going through softness in auto semiconductor business, where we are guiding for a pretty strong outlook. So I guess, Frank's question is why we are seeing this departure of directions. I think, indeed, we have seen in recent earnings calls from semiconductor companies, both foundries and ODMs across U.S., Europe and Japan where they are giving rather cautionary outlook on the auto market demand.

好的。我想我得到了問題的答案。是的，這就是問題所在。所以我想弗蘭克的問題，再次，由於某些系統原因，我深表歉意，我們聽不到。但該營運商的轉述似乎是，該行業正在經歷汽車半導體業務的疲軟，而我們對該行業的前景預測相當強勁。所以我想，弗蘭克的問題是為什麼我們會看到這種方向的偏離。我認為，事實上，我們在最近的財報電話會議中看到了美國、歐洲和日本的半導體公司（包括代工廠和 ODM 廠商）對汽車市場需求的前景相當謹慎。

But if you retail for -- about their comments, you'll be able to see that they are not saying the auto industry's overall shipment is going to decline. What they are saying really is that their stocks are perhaps too high and they are going through destocking process. And that is the reason for their cautionary outlook.

但如果你仔細閱讀他們的評論，你會發現他們並沒有說汽車產業的整體出貨量將會下降。他們真正想說的是，他們的庫存可能太高了，他們正在經歷去庫存的過程。這就是他們持謹慎態度的原因。

And if you look at the leaders -- industry forecast, most people are -- I mean, while we are not expecting a very strong auto shipment for this year, people are not focusing any decline either typically at least something like 3% or 5% or some forecast or even perspective or higher growth outlook for the vehicle shipment volume this year. So the industry actually remains solid.

如果你看看領導者——行業預測，大多數人都是——我的意思是，雖然我們預計今年的汽車出貨量不會非常強勁，但人們並沒有關注任何下降，通常至少是3% 或5%對今年汽車出貨量的一些預測，甚至是遠景或更高的成長前景。所以這個行業其實仍然很穩固。

And we -- I mentioned in my prepared remarks that our inventory for auto market actually is very, very lean and so are our customers' inventory positions. And I particularly mentioned in my prepared remarks that we actually had to take another rush orders recently. Actually I'm talking about very sizable quantities of rush orders for our panel customers. And the reason why they are giving rush orders clearly is because they have run out of stock and their existing stock cannot meet the customer demand. And with the rush orders, we also have to turn around and place our orders -- rush orders to our foundry partners because again, for the same reason, our inventory is very low, and our existing inventory simply cannot meet the demand of the customer.

我在準備好的演講中提到，我們的汽車市場庫存實際上非常非常精簡，我們客戶的庫存狀況也是如此。我在準備好的發言中特別提到，我們最近實際上不得不接受另一個緊急訂單。事實上，我說的是我們面板客戶的大量緊急訂單。而他們之所以明確加急訂單，是因為他們已經缺貨了，現有的庫存無法滿足顧客的需求。有了緊急訂單，我們也必須轉身下訂單——向我們的代工合作夥伴緊急訂單，因為同樣的原因，我們的庫存非常低，我們現有的庫存根本無法滿足客戶的需求。

So I think I also explained in my prepared remarks, there has been a total of 7 quarters in a row when we see our inventory consistently declining very nicely. And that -- and also, we announced end of last year that we believe our inventory level has become very healthy, and that certainly covers the auto industry.

因此，我想我在準備好的發言中也解釋過，我們的庫存已經連續 7 個季度持續下降。而且，我們在去年年底也宣布，我們相信我們的庫存水準已經變得非常健康，這當然涵蓋了汽車產業。

And I think that is the major reason for departure, I suppose. And also, I think we continue to highlight the fact that auto industry is going through this mega trend to upgrade their panels in terms of quantity, feature sophistication, size, et cetera, for vehicles panels. And that is very good news for panel makers targeting auto industry because for each vehicle, the panel content value is increasing and even more so for IC vendors because for each panel going to vehicles, the IC content value is increasing. So we are going through that mega trend right now and be market leader. I think we really are taking the nice drive and enjoy this mega trend. So I hope that explains the short-term difference in our outlook as opposed to most semiconductor makers. Back to you, operator.

我認為這是離開的主要原因。而且，我認為我們繼續強調這樣一個事實，即汽車行業正在經歷這一大趨勢，以在汽車面板的數量、功能複雜度、尺寸等方面升級其面板。這對於面向汽車行業的面板製造商來說是一個非常好的消息，因為對於每輛汽車來說，面板的含量價值都在增加，對於IC供應商來說更是如此，因為對於每輛汽車來說，面板的含量價值都在增加，對於IC供應商來說更是如此，因為對於每輛汽車用於汽車的面板來說，IC含量的價值正在增加。因此，我們現在正在經歷這一大趨勢，並成為市場領導者。我認為我們確實正在積極推動並享受這一大趨勢。因此，我希望這可以解釋我們與大多數半導體製造商的前景之間的短期差異。回到你身邊，操作員。

Can I just ask you to relay one more question, please. Himax is a leader in LCoS. Can I talk about the chance for see-through AR glasses to really happen?

我可以請你再轉達一個問題嗎？奇景光電 (Himax) 是 LCoS 領域的領導者。我可以談談透明AR眼鏡真正實現的機會嗎？

So I'm going to do my best to relay. They're asking about Himax as a leader about B2BR AR like classes or glasses and want you guys to speak to that scenario.

所以我會盡力去轉播。他們詢問奇景作為 B2BR AR（例如課程或眼鏡）的領導者，並希望你們談論這個場景。

Okay. Yes, I suppose, Frank, asking about AR glasses and particularly our LCoS solution topping that market. And in my -- towards the end of my prepared remarks, we highlighted the major breakthrough in technology and our excitement about the breakthrough. And I suppose we're not hearing the details of Frank's question. I suppose many people may wonder, AR as a general of our products has not seen a great success so far. And LCoS is just a supporting technology for AR glasses industry. So what is our comment is, they're really a future. And the company over the many years seems to have been committed to the development of LCoS industry -- LCoS technology for AR glasses.

好的。是的，弗蘭克，我想是在詢問 AR 眼鏡，特別是我們在該市場上領先的 LCoS 解決方案。在我準備好的演講即將結束時，我們強調了技術方面的重大突破以及我們對這項突破的興奮。我想我們沒有聽到弗蘭克問題的細節。我想很多人可能會問，AR作為我們產品的總稱，到目前為止還沒有取得很大的成功。而LCoS只是AR眼鏡產業的一個支撐技術。所以我們的評論是，它們確實是未來。而該公司多年來似乎一直致力於LCoS產業的發展——用於AR眼鏡的LCoS技術。

So I guess many people may have questions about whether this strategy actually makes sense. And my response is, obviously, we believe there's a reasonable chance for AR glasses to become successful. And I will elaborate on the importance of microdisplay or LCoS Microdisplay for the success of AR glasses. And clearly, we are committed and frankly bringing money to develop this technology for many, many years because of the simple reason that we have a very strong commitment for its success, and we certainly believe that the chance of success is quite good. And I will also highlight the fact that because -- simply because the technology is so difficult, when it is successful, it's going to be tremendous potential, tremendous business opportunity for Himax because very few people are involved simply because the technology is actually quite challenging.

所以我想很多人可能會質疑這個策略是否真的有意義。我的回答是，顯然，我們相信 AR 眼鏡有成功的機會。我將詳細闡述微顯示器或LCoS微顯示器對於AR眼鏡成功的重要性。顯然，多年來我們一直致力於並坦率地提供資金來開發這項技術，原因很簡單，我們對其成功有著非常堅定的承諾，我們當然相信成功的機會相當大。我還要強調一個事實，因為——僅僅因為這項技術是如此困難，當它成功時，這將是巨大的潛力，對奇景來說將是巨大的商機，因為很少有人參與，僅僅因為這項技術其實相當具有挑戰性。

Now let me elaborate the background a little bit. One of the major technical challenges for see-through AR glasses is the displays which, by definition, needs to be totally different than the displays we are so used to every day for, say, smartphone or watch or even those (inaudible) AR goggles.

現在讓我稍微闡述一下背景。透明 AR 眼鏡的主要技術挑戰之一是顯示屏，根據定義，它需要與我們每天習慣的顯示屏完全不同，例如智慧型手機或手錶，甚至那些（聽不清楚）AR 護目鏡。

So basically, a see-through displays is comprised of 3 things: a microdisplay which generates image, a [web guy], which projects the image and the company lens, which channels the image generated by microdisplay to the web guy, okay?

基本上，透視顯示器由三個部分組成：產生影像的微型顯示器、投影影像的[網路人員]和將微型顯示器產生的影像傳輸給網路人員的公司鏡頭，好嗎？

Now because of the see-through nature and the need to allow for outdoor use, the brightness to eyes for display for AR glasses needs to be significantly higher than those for the usual displays, which typically ranges between 250 to 300 nits around.

現在，由於透視特性和戶外使用的需要，AR 眼鏡的顯示亮度需要明顯高於普通顯示器的亮度，通常在 250 到 300 尼特之間。

I'm talking about your usual notebook displays or cellphone on display or TV displays, right, typically between 250 to 350 nits.

我說的是你常用的筆記型顯示器或手機顯示器或電視顯示器，通常在 250 到 350 尼特之間。

In comparison, our customers are now demanding for the brightness to eyes for the AR glasses to be at least 1,000 nits, which is quite a number of times higher than our usual displays. Now the trouble is the optical efficiencies of both the web guy and the coupling lens are quite low, especially the web guy, which is typically as low as 1% or less. While for the coupling lens is around 50%, 60%. So what this means is that more than 99% of the brightness generated by the microdisplay is "wasted" after traveling through the optical system and before the image is projected onto the eyes. And this is the reason why we are now offering our new generation from the LCoS with super high brightness of 250,000 nits.

相較之下，我們的客戶現在要求AR眼鏡的眼睛亮度至少為1000尼特，這比我們通常的顯示器高了許多倍。現在的問題是網路零件和耦合透鏡的光學效率都相當低，尤其是網路零件，通常低至 1% 或更低。而耦合透鏡則在50%、60%左右。因此，這意味著微顯示器產生的亮度在經過光學系統之後、影像投射到眼睛上之前，99%以上都被「浪費」了。這就是為什麼我們現在提供新一代 LCoS 超高亮度 250,000 尼特的原因。

So on a (inaudible) basis, if the web guy efficiency is 1% then our 250,000 nits AR cost can create about 1,500 nits brightness to eyes, which is going to meet the demand of our customers for AR glasses.

因此，在（聽不清楚）的基礎上，如果網路人員效率為 1%，那麼我們 250,000 尼特的 AR 成本可以為眼睛創造約 1,500 尼特的亮度，這將滿足我們客戶對 AR 眼鏡的需求。

So while we will continue to work towards even higher brightness, we believe, for the first time ever in the industry, we are finally seeing a microdisplay, which offers a legitimate level of brightness for AR glasses targeting the general public. So to complete the story, in addition to the major breakthrough in brightness, our new Front-Lit LCoS also offers low power consumption of around 300 milliwatts as I mentioned in my prepared remarks and the form factor of just 0.5 c.c. in total volume.

因此，儘管我們將繼續努力實現更高的亮度，但我們相信，我們最終將在業內首次看到微顯示器，它為面向普通大眾的 AR 眼鏡提供了合理的亮度水平。因此，為了完成這個故事，除了亮度方面的重大突破之外，我們的新型前照式LCoS 還提供了約300 毫瓦的低功耗，正如我在準備好的發言中提到的那樣，外形尺寸僅為0.5 c.c.。在總體積中。

All of these are very critical for the success of AR glasses. Last but not least, our LCoS solution is way beyond laboratory level and is actually now quite ready for volume production. I would just add one last point, which is the only competing technology for AR glasses for display is micro LED, for which the industry has put in tremendous resources over the last few years to develop billions of dollars of resources. In our view, our proprietary from the LCoS provides much better power efficiency than micro LED i.e., even the [certain] model power consumption, our solution actually produces much better brightness than LED, the micro LED -- than micro LED, microdisplay. So as far as we can tell, what we have achieved so far in our Color Sequential Front-Lit LCoS solution is far better than the performance delivered by any micro LED, micro display.

所有這些對於AR眼鏡的成功非常關鍵。最後但並非最不重要的一點是，我們的 LCoS 解決方案遠遠超出了實驗室水平，實際上現在已經做好了批量生產的準備。我想補充最後一點，用於顯示的AR眼鏡的唯一競爭技術是micro LED，業界在過去幾年中投入了大量資源，開發了數十億美元的資源。我們認為，我們的LCoS 專有技術提供了比micro LED 更好的電源效率，即，即使是[某些]型號的功耗，我們的解決方案實際上比LED、micro LED 產生更好的亮度，比micro LED、微型顯示器好得多。據我們所知，我們迄今為止在彩色順序前照式 LCoS 解決方案中所取得的成就遠遠優於任何 Micro LED、微型顯示器所提供的性能。

Further, we are offering comparable form factor with much better readiness for mass production. So -- and this is a pretty lengthy response, but I hope that kind of addresses the issue for our long-term commitment to the development of LCoS for our AR glasses industry. Thank you.

此外，我們還提供可比較的外形尺寸，並為大規模生產做好了更好的準備。這是一個相當冗長的回复，但我希望這能解決我們長期致力於 AR 眼鏡行業 LCoS 開發的問題。謝謝。

(Operator Instructions). Our next question comes from the line of Tyler Bomba with Baird. Tyler, your line is open. We're going to proceed to the next question.

（操作員說明）。我們的下一個問題來自泰勒·邦巴（Tyler Bomba）和貝爾德（Baird）的關係。泰勒，你的線路已開通。我們將繼續下一個問題。

(Operator Instructions). Our next question comes from the line of [Nathan De] with Morgan Stanley.

（操作員說明）。我們的下一個問題來自 [Nathan De] 與摩根士丹利的對話。

We are still not hearing the question. Operator, I wonder if really you can hear their questions?

我們仍然沒有聽到這個問題。接線員，不知道你是否真的能聽到他們的問題？

So we tried two people that were supposed to take questions. We did not hear them. This concludes the Q&A. We're going to hand it over to you, Jordan, for closing remarks.

所以我們嘗試了兩個應該回答問題的人。我們沒有聽到他們的聲音。問答到此結束。喬丹，我們將把它交給你做總結發言。

I apologize for the system issue. But as a final note, Eric Li, our Chief IR/PR Officer, will maintain investor marketing activities and continue to attend investor conferences. We'll announce the details as they come about. Thank you, and have a nice day.

對於系統問題，我深表歉意。但最後要注意的是，我們的首席 IR/PR 長 Eric Li 將維持投資者行銷活動並繼續參加投資者會議。我們將在細節出現時宣布。謝謝你，祝你有美好的一天。

This concludes today's conference. You may now disconnect.

今天的會議到此結束。您現在可以斷開連線。