奇景光電 (HIMX) 2024 Q2 法說會逐字稿

Hello, ladies and gentlemen.

女士們、先生們，大家好。

Welcome to the Himax Technologies' second quarter 2024 earnings conference call.

歡迎參加奇景光電 2024 年第二季財報電話會議。

(Operator Instructions) As a reminder, this conference call is being recorded.

（操作員說明）謹此提醒，本次電話會議正在錄音。

I would now like to turn the conference over to Mr. Eric Li, Chief IR/PR Officer at Himax.

現在我想將會議轉交給奇景光電首席 IR/PR 官 Eric Li 先生。

Welcome everyone to the Himax second quarter 2024 earnings call.

歡迎大家參加奇景光電 2024 年第二季財報電話會議。

My name is Eric Li, Chief IR/PR Officer at Himax.

我是 Eric Li，奇景光電首席 IR/PR 長。

Joining me today are Jordan Wu, President and Chief Executive Officer; Jessica Pan, Chief Financial Officer.

今天與我一起出席的是總裁兼執行長吳喬丹 (Jordan Wu)；潘傑西卡，財務長。

After the company's prepared comments, we have allocated time for questions in a Q&A session.

在公司準備好意見後，我們在問答環節分配了提問時間。

If you have not yet received a copy of today's results release, please email HIMX@mzgroup.us or hx_ir@himax.com.tw, access the press release on financial portals or download a copy from Himax's website at www.himax.com.tw.

如果您尚未收到今天的業績發布副本，請發送電子郵件至HIMX@mzgroup.us 或hx_ir@himax.com.tw、在金融入口網站上訪問新聞稿或從奇景網站www.himax.com 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 the 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，可能導致實際事件或結果與本次電話會議中所述的情況有重大差異。

A list of risk 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.

風險因素清單可在公司提交給 SEC 的文件（截至 2023 年 12 月 31 日的年度 20-F 表格）標題為「風險因素」的部分（可能會進行修訂）中找到。

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.

除本公司 20-F 中提供並於 2024 年 4 月 2 日向 SEC 備案的公司 2023 年全年財務資訊外，本次電話會議中包含的財務資訊未經審計並根據 IFRS 會計進行合併和編制。

Such financial information is generated internally and has not been subjected to the same review and the 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.

此類財務資訊是內部產生的，並未經過相同的審查和審查，包括由獨立審計師進行的內部審計程序和外部審計，我們的年度合併財務報表必須遵守這些程序，並且可能與經審計的合併財務報表有重大差異。

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.

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。

On today's call, I will first review the Himax consolidated financial performance for the second quarter 2024, followed by our third quarter outlook.

在今天的電話會議上，我將首先回顧奇景光電 2024 年第二季的綜合財務業績，然後是我們對第三季的展望。

Jordan will then give an update on the status of our business, after which we will take questions.

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。

You can submit your questions online through the webcast or by phone.

您可以透過網路廣播或電話在線提交問題。

We will review our financials on an IFRS basis.

我們將根據國際財務報告準則審查我們的財務狀況。

We are delighted to announce that Q2 revenues surpassed guidance, while gross margin and profits were in line with the guidance range issued on May 9, 2024.

我們很高興地宣布，第二季度收入超過了指引，而毛利率和利潤符合 2024 年 5 月 9 日發布的指引範圍。

Despite the prevailing economic headwinds, the better-than-expected financial result primarily stemmed from resumed order momentum across most of our product lines.

儘管經濟形勢嚴峻，但好於預期的財務表現主要源自於我們大部分產品線訂單動能的恢復。

Second quarter revenues registered $239.6 million, an increase of 15.5% sequentially, exceeding our guidance range of an 8% to 13% increase.

第二季營收為 2.396 億美元，季增 15.5%，超出了我們 8% 至 13% 成長的指導範圍。

Gross margin came in at 32%, in line with our guidance range of 31.5% to 33.5%, up from 29.3% of the previous quarter and 21.7% same period last year.

毛利率為 32%，符合我們 31.5% 至 33.5% 的指引範圍，高於上一季的 29.3% 和去年同期的 21.7%。

The sequential growth was driven by cost improvements and a favorable product mix, along with increased sales in the automotive IC and Tcon product lines, both of which have higher than corporate average gross margins.

連續成長的推動因素是成本改善和有利的產品組合，以及汽車 IC 和 Tcon 產品線銷售額的增加，這兩個產品的毛利率均高於企業平均水準。

The substantial improvement in gross margin from the same period last year was primarily due to the one-time early termination expense paid to foundry partners, which eliminated minimum fulfillment requirement constraints and high wafer costs set during the severe industry capacity shortage.

毛利率較去年同期大幅提升，主要得益於向代工合作夥伴支付的一次性提前終止費用，消除了行業產能嚴重短缺期間設定的最低履約要求限制和高昂的晶圓成本。

Consequently, our new wafer starts are no longer bound by these restrictive terms.

因此，我們新的晶圓生產不再受這些限制性條款的約束。

Additionally, we can now leverage diverse foundry sources for optimal operational efficiency and a significantly improved cost structure, thereby maintaining our product competitiveness.

此外，我們現在可以利用多樣化的代工資源來實現最佳營運效率並顯著改善成本結構，從而保持我們的產品競爭力。

Q2 profit per diluted ADS was $0.169, at the top end of the guidance range of $0.13 to $0.17.

第二季稀釋後每股美國存託憑證利潤為 0.169 美元，處於指導範圍 0.13 至 0.17 美元的上限。

Revenue from large display drivers came in at $39 million, reflecting a sequential increase of 24.7%.

大型顯示器驅動器的收入為 3900 萬美元，環比增長 24.7%。

The increase was predominantly driven by customers restocking in TV and monitor ICs after several quarters of muted demand, as well as increased orders in preparation for shopping festivals.

這一增長主要是由於客戶在經歷了幾個季度的需求低迷後重新補充電視和顯示器 IC 的庫存，以及為購物節做準備而增加的訂單。

Both TV and monitor IC sales posted substantial double-digit increases quarter over quarter.

電視和顯示器 IC 銷售額較上季大幅成長兩位數。

In contrast, Q2 notebook IC sales declined slightly following strong restocking in the previous quarter.

相比之下，繼上一季強勁補貨之後，第二季筆電IC銷售額略有下降。

Sales of large panel driver ICs accounted for 16.3% of total revenues for the quarter, compared to 15.1% last quarter and 19.3% a year ago.

大面板驅動IC的銷售額佔本季總營收的16.3%，而上季為15.1%，去年同期為19.3%。

Small and medium-sized display driver segment revenue reached $158.8 million, marking a sequential increase of 10.1% and surpassing the guidance due to stronger-than-anticipated sales in the TDDI products for automotive, smartphone, and tablet.

由於汽車、智慧型手機和平板電腦的 TDDI 產品銷售強於預期，中小型顯示器驅動器細分市場收入達到 1.588 億美元，環比增長 10.1%，超過預期。

In Q2, automotive driver sales, encompassing both traditional DDIC and TDDI, increased by a decent high-teens sequentially and more than 50% year over year.

第二季度，包括傳統 DDIC 和 TDDI 在內的汽車驅動器銷量環比增長了相當高的十位數，同比增長超過 50%。

Despite expectations of weakening electric vehicle demand, both automotive DDIC and TDDI sales experienced sequential growth in Q2, thanks to our robust design-win pipeline in TDDI and customers' continuous restocking momentum in DDIC since end of Q1.

儘管預期電動車需求疲軟，但得益於我們強勁的 TDDI 設計贏得管道以及客戶自第一季末以來 DDIC 的持續補貨勢頭，汽車 DDIC 和 TDDI 銷量在第二季度均實現環比增長。

Our automotive business, comprising drivers, Tcon and OLED sales, remained the largest revenue contributor in the second quarter, representing over 47% of total sales.

我們的汽車業務（包括驅動器、Tcon 和 OLED 銷售）仍然是第二季最大的收入貢獻者，佔總銷售額的 47% 以上。

Meanwhile, Q2 tablet IC sales slightly increased sequentially, surpassing guidance of a decline, fueled by leading customers' new model ramp-ups.

同時，在領先客戶新型號投放的推動下，第二季度平板電腦 IC 銷售額環比小幅增長，超過了降幅指引。

Conversely, smartphone driver sales declined as expected during a subdued festival season characterized by sluggish demand.

相反，在需求低迷的節日期間，智慧型手機驅動器的銷售量如預期下降。

The small and medium-sized, the driver IC segment accounted for 66.3% of total sales for the quarter, compared to 69.5% in the previous quarter and 63.9% a year ago.

中小型驅動IC領域佔本季總銷售額的66.3%，而上一季為69.5%，去年同期為63.9%。

Second quarter non-driver sales reached $41.8 million, up 30.6% from the previous quarter, due to a resurgence in orders for our Tcon products for TV, monitor, automotive, as well as OLED tablet.

由於電視、顯示器、汽車以及 OLED 平板電腦的 Tcon 產品訂單回升，第二季非驅動器銷售額達到 4,180 萬美元，季增 30.6%。

Our automotive local dimming Tcon, where we dominate the market, has been swiftly adopted by major panel makers, Tier 1 suppliers, and car manufacturers worldwide, boasting well over 100 design-win projects with only a small number of design awards having commenced mass production.

我們主導市場的汽車局部調光Tcon已迅速被全球主要面板製造商、一級供應商和汽車製造商採用，擁有超過100個設計獲獎項目，其中只有少數設計獎項已開始量產。

This momentum is further fueled by the rapid expansion of project awards across continents, positioning us for strong growth, mirroring the success we have achieved in automotive TDDI.

各大洲項目獎項的迅速擴大進一步推動了這一勢頭，為我們的強勁增長奠定了基礎，反映了我們在汽車 TDDI 領域的成功。

Tcon business represented over 10% of our total sales in the second quarter.

Tcon 業務佔第二季總銷售額的 10% 以上。

Non-driver products accounted for 17.4% of total revenues, as compared to 15.4% in the previous quarter and 16.8% a year ago.

非驅動產品佔總營收的 17.4%，而上一季為 15.4%，一年前為 16.8%。

Second quarter operating expenses were $47.3 million, a decrease of 6.7% from the previous quarter and a decline of 11.1% from a year ago.

第二季營運費用為4,730萬美元，季減6.7%，年減11.1%。

The sequential decrease was primarily driven by decreases in tape-out expenses.

環比下降主要是由於流片費用減少所致。

The year-over-year decrease was primarily due to reduced tape-out expenses and a decline in the annual bonuses for the amortized tranches of the previous years' bonuses.

年比下降的主要原因是流片費用減少以及前幾年獎金攤銷部分的年度獎金減少。

Amid ongoing macroeconomic challenges, we are strictly enforcing budget and expense controls to manage these conditions.

在持續的宏觀經濟挑戰中，我們正在嚴格執行預算和費用控制來應對這些情況。

Second quarter operating income was $29.3 million or 12.2% of sales, compared to minus 0.9% of sales for the same period last year and 4.8% of sales last quarter.

第二季營業收入為 2,930 萬美元，佔銷售額的 12.2%，去年同期為負 0.9%，上季為 4.8%。

Both the sequential and year-over-year increases were primarily due to higher sales and an improved gross margin.

環比和年成長主要是由於銷售額增加和毛利率提高。

Second-quarter after-tax profit was $29.6 million, or $0.169 per diluted ADS, compared to $12.5 million, or $0.071 per diluted ADS last quarter, and $0.9 million, or $0.005 in the same period last year.

第二季稅後利潤為2,960 萬美元，或攤薄後的美國存託憑證0.169 美元，而上季為1,250 萬美元，或攤薄後的美國存託憑證0.071 美元，去年同期為90 萬美元，或攤薄後的美國存託憑證0.005 美元。

The after-tax profit for the first half was $42.1 million, or $0.241 per diluted ADS, a significant increase from $15.8 million, or $0.091, for the same period last year.

上半年稅後利潤為 4,210 萬美元，即每股攤薄後的美國存託憑證 0.241 美元，較去年同期的 1,580 萬美元，即 0.091 美元大幅成長。

Turning to the balance sheet, we had $253.8 million of cash, cash equivalents, and other financial assets at the end of June 2024, compared to $277.4 million a quarter ago and $219.5 million at the same time last year.

轉向資產負債表，截至 2024 年 6 月，我們擁有 2.538 億美元的現金、現金等價物和其他金融資產，而上一季為 2.774 億美元，去年同期為 2.195 億美元。

The sequential decrease in cash balance was primarily due to customer refunds for their deposits made during the industry-wide capacity shortage, along with a strategic investment of approximately $16 million in FOCI through private placement.

現金餘額環比減少主要是由於客戶在全行業產能短缺期間退還了押金，以及透過私募對 FOCI 進行了約 1600 萬美元的戰略投資。

The cash balance reduction was partially offset by an operating cash inflow of $26.9 million during the quarter.

現金餘額減少被本季 2,690 萬美元的營運現金流入部分抵銷。

Compared to the operating cash inflow of $56.7 million in Q1, the sequential decrease was mainly attributable to reduced sales over the preceding two quarters, leading to lower receivables.

與第一季營運現金流入 5,670 萬美元相比，季減主要是由於前兩季銷售額減少，導致應收帳款減少。

Additionally, the increase in accounts payable in Q2 was a result of higher Q1 wafer orders, as we anticipated larger shipment volumes in Q2.

此外，第二季應付帳款的增加是第一季晶圓訂單增加的結果，因為我們預計第二季的出貨量會更大。

Other significant operating cash outflows in Q2 included annual income tax payments.

第二季其他重大經營現金流出包括年度所得稅支付。

Looking ahead to Q3, we anticipate a decline in cash, cash equivalents, and other financial assets, primarily due to a payment of $50.7 million for annual dividends to shareholders.

展望第三季度，我們預計現金、現金等價物和其他金融資產將下降，這主要是由於向股東支付了 5,070 萬美元的年度股息。

We also expect to distribute a total of approximately $30.7 million for employee bonus awards at the end of this quarter, which includes around $11.3 million for the immediately vested portion of this year's awards, with the actual amount subject to the final Board decision, and $19.4 million for vested awards granted over the past three years.

我們也預計在本季末分配總計約 3,070 萬美元的員工獎金，其中包括約 1,130 萬美元用於今年獎勵的立即歸屬部分，實際金額以董事會最終決定為準，以及 19.4 美元過去三年授予的既定獎項為100 萬元。

Our quarter-end inventories as of June 30, 2024 were $203.7 million, similar to $201.9 million last quarter, indicating a well-managed and a balanced inventory level.

截至 2024 年 6 月 30 日，我們的季末庫存為 2.037 億美元，與上季的 2.019 億美元相似，顯示庫存水準管理良好且平衡。

Accounts receivable at the end of June 2024 was $242.4 million, up from $212.3 million last quarter and $239 million a year ago.

截至 2024 年 6 月末，應收帳款為 2.424 億美元，高於上季的 2.123 億美元和一年前的 2.39 億美元。

DSO was 99 days at the quarter end, as compared to 93 days last quarter and 90 days a year ago.

季度末的 DSO 為 99 天，而上季為 93 天，去年同期為 90 天。

Second quarter capital expenditures were $4.6 million, versus $2.7 million last quarter and $2.9 million a year ago.

第二季資本支出為 460 萬美元，上季為 270 萬美元，一年前為 290 萬美元。

The second quarter CapEx was mainly for R&D related equipment and in-house tester for our IC design business.

第二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。

As of June 30, 2024, Himax had $174.7 million ADS outstanding, unchanged from last quarter.

截至2024年6月30日，奇景的未償美國存託股份為1.747億美元，與上季持平。

On a fully diluted basis, the total number of ADS outstanding for the second quarter was $175.1 million.

在完全稀釋的基礎上，第二季流通的美國存託股份總數為 1.751 億美元。

Now, turning to our third quarter 2024 guidance.

現在，轉向我們的 2024 年第三季指引。

We expect third quarter revenues to decrease 12% to 17% sequentially.

我們預計第三季營收將季減 12% 至 17%。

Gross margin is expected to be around 30%, depending on product mix.

毛利率預計在 30% 左右，具體取決於產品組合。

The third quarter profit attributable to shareholders is estimated to be in the range of $0.015 to $0.045 per fully diluted ADS.

第三季股東應占利潤預計為每股完全攤薄後的美國存託股份 0.015 美元至 0.045 美元。

As we've done historically, we will grant employees' annual bonus, including RSUs and cash awards, on or around September 30 this year.

正如我們以往所做的那樣，我們將在今年 9 月 30 日左右向員工發放年度獎金，包括 RSU 和現金獎勵。

The third quarter guidance for profit per diluted ADS has taken into account the expected 2024 annual bonus, which, subject to Board approval, is now assumed to be around $12.5 million, out of which $11.3 million will be vested and expensed immediately on the grant date.

第三季每股攤薄美國存託股利潤指引已考慮到預期的 2024 年年度獎金，目前假設該獎金約為 1,250 萬美元，其中 1,130 萬美元將在授予日立即歸屬和支出，但須經董事會批准。

As a reminder, the total annual bonus amount and the immediately vested portion are our current best estimates only and the actual amounts could vary materially depending on, among other things, our Q4 profit and the final Board decision for the total bonus amount and its vesting scheme.

提醒一下，年度獎金總額和立即歸屬部分只是我們當前的最佳估計，實際金額可能會根據我們第四季度的利潤以及董事會對獎金總額及其歸屬的最終決定等因素而發生重大變化方案。

As is the case for previous years, we expect the annual bonus grant in 2024 to lead to higher third quarter operating expenses compared to the other quarters of the year.

與往年的情況一樣，我們預計 2024 年的年度獎金發放將導致第三季營運費用高於今年其他季度。

In comparison, the annual bonus for 2023 and 2022 were $10.4 million and $39.6 million, respectively, of which $9.7 million and $18.5 million vested immediately.

相較之下，2023年和2022年的年度獎金分別為1,040萬美元和3,960萬美元，其中970萬美元和1,850萬美元立即歸屬。

In providing our Q3 financial guidance, the Q3 expense related to employee bonus is estimated to be $14.2 million, comprised of $11.3 million, the immediately vested portion of this year's bonus as stated above, and $2.9 million, the amortized portion of the previous years' unvested bonuses.

在提供我們的第三季財務指引時，與員工獎金相關的第三季費用估計為 1,420 萬美元，其中包括上述今年獎金的立即歸屬部分 1,130 萬美元，以及往年獎金的攤銷部分 290 萬美元。未歸屬的獎金。

For the sake of completeness, employee bonus expense in each of the last three quarters was also around $2.9 million.

為了完整起見，過去三個季度每季的員工獎金支出也約為 290 萬美元。

I will now turn the call over to Jordan to discuss our Q3 outlook.

我現在將把電話轉給喬丹，討論我們第三季的前景。

Jordan, the floor is yours.

喬丹，地板是你的。

Thank you, Eric.

謝謝你，埃里克。

Given the prevailing macroeconomic uncertainty, end customers remain conservative causing panel makers to take a cautious stance and strictly control production to maintain low inventory levels.

鑑於當前宏觀經濟的不確定性，終端客戶仍然保守，導致面板製造商採取謹慎立場並嚴格控制生產以維持低庫存水準。

This is adversely impacting IC demand, leading to our conservative third quarter forecast.

這對 IC 需求產生了不利影響，導致我們對第三季的預測持保守態度。

During the second quarter in the automotive market, car makers initially anticipated a sales boost due to promotional activities and government subsidies, especially in China.

在汽車市場第二季度，汽車製造商最初預計，由於促銷活動和政府補貼，尤其是在中國，銷售將有所成長。

Consequently, we saw a major uptick in the second quarter IC sales along with the aggressive discount campaigns of car makers.

因此，隨著汽車製造商積極的折扣活動，我們看到第二季 IC 銷售額大幅上升。

However, these intense campaigns did not generate the anticipated sales growth and may have even triggered consumers to hesitate in purchasing new cars, leading to disappointing car sales in China for the second quarter and resulting in excessive inventories throughout the supply chain.

然而，這些激烈的促銷活動並沒有帶來預期的銷售成長，甚至可能引發消費者對購買新車的猶豫，導致第二季中國汽車銷售令人失望，並導致整個供應鏈庫存過多。

As a result, our panel customers have begun to scale back their IC procurement in Q3 to manage inventory levels.

因此，我們的面板客戶已開始在第三季縮減 IC 採購規模，以管理庫存水準。

In comparison, the automotive markets in Europe and the US have remained relatively stable since last year, without experiencing the dramatic fluctuations seen in China.

相較之下，去年以來歐洲和美國的汽車市場保持相對穩定，沒有出現中國那樣的劇烈波動。

As the leader of the automotive display ICs, we serve a diverse range of brands worldwide, with sales evenly distributed across all major markets.

作為汽車顯示 IC 的領導者，我們為全球多個品牌提供服務，銷售額平均分佈在所有主要市場。

However, since China is the world's largest automotive market, commanding over 30% of the global sales, fluctuations in China do have a substantial impact on our business.

然而，由於中國是全球最大的汽車市場，佔全球銷售量的30%以上，中國的波動確實對我們的業務產生了重大影響。

Moving forward, we will navigate the current challenging business environment through close collaborations with panel makers and Tier 1 suppliers, meticulously managing our wafer starts and closely monitoring customer demands.

展望未來，我們將透過與面板製造商和一級供應商的密切合作，精心管理我們的晶圓開工並密切監控客戶需求，以應對當前充滿挑戰的商業環境。

The automotive IC business is Himax's largest revenue contributor, accounting for over 47% of our total revenues in Q2, significantly higher than our peers.

汽車IC業務是奇景最大的營收來源，佔第二季總營收的47%以上，明顯高於同業。

Despite the recent challenges, we remain optimistic about our automotive IC business and are committed to the long-term innovation and development of our automotive products.

儘管最近面臨挑戰，我們仍然對汽車IC業務保持樂觀，並致力於汽車產品的長期創新和發展。

The automotive display market remains on solid footing with a positive growth trajectory driven by versatile innovations and technology advancements.

汽車顯示器市場仍然基礎穩固，在多功能創新和技術進步的推動下呈現出積極的成長軌跡。

Advanced and fancier displays are increasingly becoming a major selling point for car makers, driving the automotive display market towards a megatrend of expanding quantities, sizes, and sophistication.

先進、更精美的顯示器日益成為汽車製造商的主要賣點，推動汽車顯示器市場朝著數量、尺寸和複雜程度不斷擴大的大趨勢發展。

As the leading player in the automotive display IC market, Himax is well-positioned to be the key beneficiary of the trend.

作為車用顯示IC市場的龍頭企業，奇景光電可望成為此趨勢的主要受益者。

We command a 40% global market share in traditional automotive DDIC and hold an even larger share in both the automotive TDDI and local dimming Tcon markets.

我們在傳統汽車 DDIC 領域佔據全球 40% 的市場份額，在汽車 TDDI 和局部調光 Tcon 市場中佔有更大份額。

In addition to offering the most comprehensive range of automotive IC products for LCD panels, we are actively expanding into the automotive OLED panel market, forming strategic partnerships with major TV panel makers in Korea, China, and Japan to develop comprehensive solutions encompassing DDIC, Tcon, and touch controller ICs.

除了為液晶面板提供最全面的車用IC產品外，我們還積極拓展車用OLED面板市場，與韓國、中國和日本的主要電視面板製造商建立戰略合作夥伴關係，開發包括DDIC、Tcon的全面解決方案，和觸控控制器IC。

This proactive approach positions us to navigate industry shifts and capitalize on the anticipated wide-spread adoption of OLED displays in the high-end vehicles, further solidifying our market leadership.

這種積極主動的方法使我們能夠駕馭行業轉變，並利用 OLED 顯示器在高端車輛中的預期廣泛採用，進一步鞏固我們的市場領導地位。

During the quarter, we announced two substantial strategic investments.

本季度，我們宣布了兩項重大戰略投資。

First, in an effort to strengthen the long-term partnership with FOCI, we, as a strategic investor, acquired a 5.3% equity stake through private placement.

首先，為加強與FOCI的長期合作關係，我們作為策略投資者，透過定向增發方式收購了FOCI 5.3%的股權。

The partnership integrates Himax's wafer level optics, WLO expertise and FOCI's optical fiber know-how to create innovative, world-leading linear-drive pluggable optics, LPO, and co-packaged optics or CPO solutions for advanced multi-chip modules, MCMs required for the fast-growing cloud AI and high-speed computing markets.

該合作夥伴關係整合了Himax 的晶圓級光學元件、WLO 專業知識和FOCI 的光纖專業知識，為先進的多晶片模組、MCM 所需的創新、世界領先的線性驅動可插拔光學元件、LPO 和共同封裝光學元件或CPO 解決方案創建了解決方案。

This collaboration not only highlights the application versatility of the WLO technology and Himax's market leadership, but also underscores the significant potential of our WLO in advancing the LPO/CPO technology, which is vital for the advancement of cloud AI and high-speed computing.

此次合作不僅凸顯了WLO技術的應用多功能性和奇景的市場領導地位，也凸顯了我們的WLO在推進LPO/CPO技術方面的巨大潛力，這對於雲端人工智慧和高速運算的進步至關重要。

Separately, we invested in the US-based Obsidian Sensors, whose revolutionary high-resolution thermal imaging sensors meet the growing demand of thermal imaging across various industries, including automotive, security, surveillance, drones, and military.

另外，我們也投資了美國的 Obsidian Sensors，其革命性的高解析度熱成像感測器滿足了汽車、安防、監控、無人機和軍事等各行業不斷增長的熱成像需求。

This investment broadens our portfolio of imaging sensors, which, when meshed with our ultralow power WiseEye AI, enable enhanced sensor fusion possibilities for endpoint AI applications.

這項投資擴大了我們的成像感測器產品組合，當與我們的超低功耗 WiseEye AI 結合時，可以增強端點 AI 應用的感測器融合可能性。

The Obsidian investment positions us at the forefront of machine vision AI applications, delivering high effectiveness particularly in harsh environments and completely dark scenarios.

Obsidian 投資使我們處於機器視覺人工智慧應用的最前沿，尤其是在惡劣環境和完全黑暗的場景中，能夠提供高效率。

As we look ahead, our focus remains on enhancing profitability, strengthening operational resilience, and improving adaptability to the evolving market.

展望未來，我們的重點仍然是提高獲利能力、增強營運彈性以及提高對不斷變化的市場的適應能力。

We continue to optimize our cost structure and reinforce our supplier diversification strategies for foundries as well as backend packaging and testing.

我們持續優化成本結構，並加強代工廠以及後端封裝和測試的供應商多元化策略。

At the same time, we remain committed to stringent expense control, set to further reduce operating expenses compared to last year.

同時，我們仍然致力於嚴格的費用控制，與去年相比將進一步減少營運費用。

For reference, we achieved a 4% year-over-year reduction in operating expenses in 2023.

作為參考，我們在 2023 年實現了營運費用年減 4%。

With that, I'll now begin with an update on the large panel driver IC business.

接下來，我將先介紹大面板驅動IC業務的最新情況。

In Q3, we anticipate a double-digit sequential revenue decrease for large display driver ICs, primarily due to subdued monitor and TV IC sales, set to decline double digit and single digit respectively, following substantial order replenishment in preparation for shopping festivals in the previous quarter.

In Q3, we anticipate a double-digit sequential revenue decrease for large display driver ICs, primarily due to subdued monitor and TV IC sales, set to decline double digit and single digit respectively, following substantial order replenishment in preparation for shopping festivals in the previous四分之一.

Procurements from our leading panel customers have become more conservative due to sluggish market conditions driven by worse-than-expected shopping festival sales.

由於購物節銷售差於預期導致市場狀況低迷，我們對主要面板客戶的採購變得更加保守。

However, notebook IC sales are poised for a decent increase, bolstered by robust order replenishment from our leading panel customers.

然而，在我們領先的面板客戶的強勁訂單補充的推動下，筆記型電腦 IC 的銷售有望實現可觀的成長。

Looking ahead in the notebook sector, we have made a strategic effort to position ourselves to capitalize on the anticipated rising demands for two new market areas, namely LCD displays equipped with touch features and OLED displays, both expected to enjoy decent penetration in premium notebook and the upcoming AI PC markets.

展望筆記型電腦領域的未來，我們做出了戰略努力，以利用兩個新市場領域預期不斷增長的需求，即配備觸控功能的 LCD 顯示器和 OLED 顯示器，這兩個領域預計將在高端筆記型電腦和即將到來的人工智慧PC市場。

Leveraging our industry leadership in TDDI solutions for tablet market, we are working closely with LCD panel customers in the development of in-cell TDDI and new generation Tcon solutions for LCD displays.

憑藉我們在平板電腦市場 TDDI 解決方案方面的行業領先地位，我們正在與 LCD 面板客戶密切合作，開發用於 LCD 顯示器的 In-cell TDDI 和新一代 Tcon 解決方案。

Concurrently, we have made significant strides in OLED technology for notebook in strategic partnerships with leading panel manufacturers in Korea and China, developing state-of-the-art touch controllers, DDIC and Tcon solutions.

同時，我們與韓國和中國領先的面板製造商建立戰略合作夥伴關係，在筆記型電腦 OLED 技術方面取得了重大進展，開發了最先進的觸控控制器、DDIC 和 Tcon 解決方案。

Some of the projects above, including in-cell TDDI for mainstream LCD notebooks and Tcon and DDIC for OLED notebooks, are slated for mass production in the second half of this year with leading panel customers.

上述部分項目，包括主流 LCD 筆記本的 In-cell TDDI 以及 OLED 筆記本的 Tcon 和 DDIC，預計今年下半年與領先的面板客戶進行量產。

We are optimistic that the notebook segment will act as a strong growth catalyst for Himax as we move into 2025.

我們樂觀地認為，進入 2025 年，筆記型電腦領域將成為奇景光電的強勁成長催化劑。

Turning to the small and medium-sized display driver IC business, we anticipate third quarter revenue to decline low-teens sequentially.

談到中小型顯示器驅動IC業務，我們預計第三季營收將季減至十位數以下。

Impacted by customers' destocking measures, especially for the Chinese market as I just mentioned, automotive revenue in Q3 is expected to decrease high teens sequentially, following high-teens growth of both DDIC and TDDI in Q2.

受客戶去庫存措施的影響，尤其是我剛才提到的中國市場，繼第二季DDIC和TDDI雙雙雙雙成長之後，第三季汽車收入預計將環比雙雙下降。

That being said, through the first nine months of the year, our automotive driver IC sales are still set to grow mid-teens year over year, driven by continued expansion of TDDI adoption across all major end customers.

話雖如此，今年前 9 個月，在所有主要終端客戶對 TDDI 採用率持續擴大的推動下，我們的汽車驅動器 IC 銷售額仍將同比增長 15%左右。

We have secured over 450 TDDI design-win projects, with only approximately 30% currently in mass production, indicating significant growth potential going forward.

我們已獲得超過 450 個 TDDI 設計獲勝項目，目前只有約 30% 投入量產，這表明未來成長潛力巨大。

Meanwhile, a trend is emerging where more customers are opting for Himax's TDDI or LTDI, along with our local dimming Tcon, as their standard development platform for creating new automotive displays of various sizes.

同時，一種趨勢正在出現，越來越多的客戶選擇奇景的 TDDI 或 LTDI 以及我們的本地調光 Tcon 作為他們的標準開發平台，用於創建各種尺寸的新型汽車顯示器。

This growing adoption of more of our automotive IC offerings also signifies an increase in content value for Himax on a per-panel basis.

我們的汽車 IC 產品越來越被採用，也意味著奇景光電每塊面板的內容價值不斷增加。

Himax is widely recognized as the leader in the automotive display IC market, offering the industry's broadest range of products, from traditional DDIC and TDDI to advanced technologies, such as local dimming Tcon, LTDI, and OLED.

Himax 被廣泛認為是汽車顯示器 IC 市場的領導者，提供業界最廣泛的產品，從傳統的 DDIC 和 TDDI 到先進技術，如局部調光 Tcon、LTDI 和 OLED。

We are committed to continuously enhancing our product portfolio to meet customers diverse and evolving needs.

我們致力於不斷增強我們的產品組合，以滿足客戶多樣化和不斷變化的需求。

Our newly introduced TDDI incorporating local dimming Tcon in one chip exemplifies this commitment to providing customers with more options, as the new solution is ideal for smaller panels that usually require only one to two ICs for cost considerations, while still equipped with advanced touch and local dimming features.

我們新推出的TDDI 將局部調光Tcon 整合在一個晶片中，體現了這個為客戶提供更多選擇的承諾，因為新解決方案非常適合較小的面板，出於成本考慮，這些面板通常只需要一到兩個IC，同時仍配備先進的觸控和局部調光功能。

Turning to smartphone IC sales, we expect a decent double-digit increase sequentially thanks to new product launches by key customers during the quarter.

至於智慧型手機 IC 銷售額，由於本季主要客戶推出新產品，我們預計將出現兩位數的連續成長。

In contrast to the positive outlook in smartphone business, Q3 tablet sales are projected to decline sequentially, as end customers prolong their replacement cycles in response to challenging economic conditions.

與智慧型手機業務的積極前景相反，第三季平板電腦銷售量預計將連續下降，因為終端客戶為應對充滿挑戰的經濟狀況而延長了更換週期。

Next for an update on our OLED business.

接下來是我們 OLED 業務的最新情況。

For the automotive OLED market, we have formed strategic alliances with leading panel manufacturers in Korea, China, and Japan.

對於汽車OLED市場，我們與韓國、中國和日本的領先面板製造商結成了策略聯盟。

Leveraging our leadership in automotive LCD technology and OLED design expertise, these partnerships further strengthen our presence in the market.

憑藉我們在汽車 LCD 技術和 OLED 設計專業知識方面的領先地位，這些合作夥伴關係進一步增強了我們在市場上的地位。

We offer a comprehensive suite of OLED solutions for automotive, including DDIC, Tcon, and on-cell touch controllers, ensuring complete coverage of customer requirements.

我們為汽車提供一整套 OLED 解決方案，包括 DDIC、Tcon 和 On-cell 觸控控制器，確保完全滿足客戶需求。

Notably, our meticulously engineered OLED on-cell touch controllers set a new standard, boasting an industry-leading touch signal-to-noise ratio of over 45 dB, greatly enhancing sensitivity.

值得注意的是，我們精心設計的 OLED On-cell 觸控控制器樹立了新標準，擁有業界領先的超過 45 dB 的觸控信噪比，大大提高了靈敏度。

This allows automotive displays to maintain proper functionality under challenging conditions, such as glove-wearing and wet finger operations.

這使得汽車顯示器能夠在具有挑戰性的條件下保持正常的功能，例如戴手套和濕手指操作。

We are pleased to share that our OLED on-cell touch controller for automotive has entered mass production this quarter.

我們很高興地宣布，我們的汽車 OLED On-cell 觸控控制器已於本季度進入量產。

With additional projects set for mass production soon, we anticipate sales of our OLED on-cell touch controller to further bolster our revenues starting 2025.

隨著更多項目即將量產，我們預計 OLED 內嵌式觸控控制器的銷售將在 2025 年開始進一步增加我們的收入。

Beyond the automotive sector, we have made notable advances in the tablet and notebook sectors with top OLED panel manufacturers in Korea and China.

除了汽車領域之外，我們還與韓國和中國的頂級 OLED 面板製造商合作，在平板電腦和筆記型電腦領域取得了顯著進展。

Our comprehensive OLED product offerings, encompassing DDIC, Tcon, and touch controllers, have led to several new projects that are on track to enter mass production later in the year.

我們提供全面的 OLED 產品，包括 DDIC、Tcon 和觸控控制器，已經催生了多個新項目，這些項目預計將在今年稍後進入批量生產。

Regarding smartphone OLED, the current market drawdown of our customers has prompted us to revise our production timeline to next year.

關於智慧型手機 OLED，目前客戶的市場萎縮促使我們將生產時間表修改為明年。

Despite these challenges, we are actively collaborating with customers in Korea and China and have several verification and partnership projects currently in progress.

儘管面臨這些挑戰，我們仍在積極與韓國和中國的客戶合作，目前正在進行多個驗證和合作專案。

I'd like to now turn to our non-driver IC business update.

我現在想談談我們的非驅動器 IC 業務的最新情況。

First for an update on our Tcon business.

首先介紹一下我們 Tcon 業務的最新情況。

We anticipate a double-digit sequential decline in Q3 Tcon sales as customers pulled forward their inventory purchases during the prior quarter particularly for monitor application.

我們預計第三季 Tcon 銷售額將出現兩位數的環比下降，因為客戶提前了上一季的庫存採購，特別是顯示器應用的庫存。

However, our automotive Tcon business is expected to achieve a decent double-digit growth in Q3, despite the current headwinds in the automotive market, fueled by the shipment of new projects from previously secured design-wins.

然而，儘管汽車市場當前面臨阻力，但在先前獲得的設計勝利的新項目的出貨推動下，我們的汽車 Tcon 業務預計將在第三季度實現可觀的兩位數增長。

Since only a small portion of the secured design-wins are currently in mass production, we anticipate significant growth potential for our automotive Tcon business in the coming years.

由於目前只有一小部分已獲得的設計已投入批量生產，因此我們預計未來幾年我們的汽車 Tcon 業務將具有巨大的成長潛力。

While ongoing weak macroeconomic conditions continue to subdue demand in consumer electronics, some of our newly developed Tcon ICs for OLED tablets and ePaper displays are starting to show promising results.

雖然持續疲軟的宏觀經濟狀況繼續抑制消費性電子產品的需求，但我們新開發的一些用於 OLED 平板電腦和電子紙顯示器的 Tcon IC 已開始顯示出有希望的結果。

In the tablet segment, we are expanding our product lineups and strengthening our position in the high-value-added OLED market, building on our early success in the tablet OLED market.

在平板電腦領域，我們正在擴大我們的產品陣容，並鞏固我們在高附加價值OLED市場的地位，以我們在平板電腦OLED市場的早期成功為基礎。

For the rapidly growing ePaper market, we recently made a joint announcement with E Ink, the global leader in ePaper market, to unveil T2000, a state-of-the-art, next-generation color ePaper Tcon. ePaper stands out for its energy efficiency, consuming power only during screen updates.

針對快速成長的電子紙市場，我們最近與全球電子紙市場領導者 E Ink 元太科技聯合宣布推出最先進的下一代彩色電子紙 Tcon T2000。 ePaper 因其能源效率而脫穎而出，僅在螢幕更新期間消耗電力。

Leveraging Himax's decades of expertise in image display processing and Tcon design, the T2000 Tcon accelerates screen updates for a better viewing experience, while greatly reducing power consumption of the ePaper display.

憑藉奇景數十年在影像顯示處理和 Tcon 設計方面的專業知識，T2000 Tcon 加速螢幕更新以獲得更好的觀看體驗，同時大幅降低電子紙顯示器的功耗。

Additionally, the T2000 features an exclusive handwriting processing accelerator, enabling seamless, nearly lag-free handwriting, while boosting prompt display responsiveness on ePaper displays without requiring an SoC.

此外，T2000 還具有獨特的手寫處理加速器，可實現無縫、幾乎無延遲的手寫，同時提高電子紙顯示器上的即時顯示響應速度，而無需 SoC。

It also enables richer and more vibrant colors, enhancing the display's visual appeal across a broad spectrum of E Ink's color ePaper platforms.

它還可以實現更豐富、更鮮豔的色彩，增強 E Ink 彩色電子紙平台上顯示器的視覺吸引力。

The collaboration opens new possibilities for color ePaper applications in eReaders, ePaper, digital signages, and more.

此次合作為彩色電子紙在電子閱讀器、電子紙、數位看板等領域的應用開啟了新的可能性。

Switching gears to the WiseEye Ultralow Power AI Sensing solution, a cutting-edge endpoint AI integration featuring industry-leading ultralow power AI processor, always-on CMOS image sensor, and advanced CNN-based AI algorithm.

轉向WiseEye 超低功耗人工智慧感測解決方案，這是一種尖端端點人工智慧集成，具有業界領先的超低功耗人工智慧處理器、始終在線的CMOS 影像感測器和基於CNN 的先進人工智慧演算法。

In the fast-changing AI landscape, WiseEye AI technology stands out for its expertise in on-device tinyML microcontroller solutions, characterized by remarkably low power consumption, operating at just single-digit milliwatts, making it possible to add AI functionalities to battery-powered endpoint devices.

在快速變化的人工智慧領域，WiseEye AI技術以其在設備端tinyML微控制器解決方案方面的專業知識脫穎而出，其特點是功耗極低，運行時僅為個位數毫瓦，使得在電池供電的情況下添加人工智慧功能成為可能端點設備。

Our WiseEye technology is creating new opportunities for companies such as DESMAN, China's leading high-end smart door lock vendor, who introduced the world's first smart door locks with 24/7 sentry monitoring and real-time event recording with the fancy AI features achieved while still maintaining over six months of battery operation.

我們的WiseEye 技術正在為中國領先的高階智慧門鎖供應商DESMAN 等公司創造新的機遇，該公司推出了世界上第一款具有24/7 哨兵監控和即時事件記錄功能的智慧門鎖，同時實現了精美的AI 功能。

Our collaboration with DESMAN has sparked increased interests from other door lock vendors across various continents to develop innovative value-added AI features such as parcel recognition, smart anti-pinch protection and biometric access.

我們與 DESMAN 的合作激發了各大洲其他門鎖供應商對開發創新的增值人工智慧功能的興趣，例如包裹識別、智慧防夾保護和生物識別存取。

Notably, some of our customers are currently evaluating our newly introduced WiseEye PalmVein solution, which offers effortless, keyless, and highly secure biometric access for entry control.

值得注意的是，我們的一些客戶目前正在評估我們新推出的 WiseEye PalmVein 解決方案，該解決方案為門禁控制提供輕鬆、無鑰匙且高度安全的生物識別存取。

WiseEye PalmVein is part of our WiseEye AI module business, integrating Himax WiseEye2 AI processor, AoS CMOS sensor, and our proprietary palm vein authentication algorithm.

WiseEye PalmVein 是我們 WiseEye AI 模組業務的一部分，整合了奇景 WiseEye2 AI 處理器、AoS CMOS 感測器和我們專有的手掌靜脈認證演算法。

We see growing traction and extensive engineering activities for this contactless biometric authentication solution that can authenticate an individual's identity in under 100 milliseconds, while consuming just a few milliwatts of power.

我們看到這種非接觸式生物辨識身份驗證解決方案的吸引力不斷增長，並開展了廣泛的工程活動，該解決方案可以在 100 毫秒內驗證個人身份，同時僅消耗幾毫瓦的功率。

This represents a significant breakthrough in security technology by enabling biometric authentication in battery-powered devices.

透過在電池供電設備中實現生物識別身份驗證，這代表了安全技術的重大突破。

With outstanding accuracy and robust liveness check capabilities, PalmVein authentication significantly reduces the risk of duplication or spoofing compared to conventional fingerprint or face recognition, making it an ideal choice for indoor security, login authentication, and other access control applications.

憑藉出色的準確性和強大的活體檢查功能，與傳統的指紋或人臉識別相比，PalmVein 身份驗證顯著降低了重複或欺騙的風險，使其成為室內安全、登入身份驗證和其他存取控制應用的理想選擇。

WiseEye PalmVein upholds robust security standards, while offering best-in-class power efficiency, making it the only solution suitable for battery-powered devices.

WiseEye PalmVein 堅持穩健的安全標準，同時提供一流的電源效率，使其成為唯一適合電池供電設備的解決方案。

We are collaborating with vendors across various sectors globally, including door lock, access control, notebook, and automotive.

我們正在與全球各行業的供應商合作，包括門鎖、門禁控制、筆記型電腦和汽車。

While just launched at the beginning of the year, WiseEye PalmVein has already been successfully adopted by a US customer for smart security and is set to commence mass production starting the end of this year.

WiseEye PalmVein在年初剛推出，已成功被美國客戶應用於智慧安防領域，並計劃於今年底開始量產。

We believe WiseEye PalmVein will profoundly impact the security industry and unlock new opportunities for battery-powered devices across various use cases.

我們相信 WiseEye PalmVein 將深刻影響安全產業，並為各種用例的電池供電設備帶來新的機會。

To broaden WiseEye AI's market reach and shorten customer development cycles, we also provide seamlessly integrated plug-and-play WiseEye Modules and no-code or low-code AI development platforms, featuring diverse context-aware AI algorithms that customers can reprogram or fine-tune with minimal effort for real-world use cases.

為了擴大WiseEye AI的市場覆蓋範圍並縮短客戶開發週期，我們還提供無縫整合的即插即用WiseEye模組和無程式碼或低程式碼AI開發平台，具有多種上下文感知AI演算法，客戶可以重新編程或精細化以最小的努力針對現實世界的用例進行調整。

Our recent announcement with NVIDIA TAO exemplifies this approach whereby our WiseEye Module customers targeting AI deployment on resource-constrained endpoint devices can easily optimize and quantize deep learning models with pretrained enterprise-ready AI models and tools offered by NVIDIA.

我們最近與NVIDIA TAO 發布的公告就是這種方法的例證，我們的WiseEye Module 客戶在資源有限的端點設備上部署AI 時，可以使用NVIDIA 提供的預先訓練的企業級AI 模型和工具輕鬆優化和量化深度學習模型。

This facilitates rapid democratization of endpoint AI applications using cost-effective, production-ready AI modules for various use cases.

這有助於使用適合各種用例的經濟高效、可立即投入生產的 AI 模組，促進端點 AI 應用程式的快速民主化。

Additionally, in response to growing AI-driven demand towards machine-vision across various environments, we recently made a strategic investment in Obsidian Sensors, a San Diego-based company renowned for its revolutionary, high-resolution, low-cost thermal sensors, offering unmatched versatility by detecting heat differences even in complete darkness, measuring temperature and identifying distant objects.

此外，為了滿足各種環境中人工智慧驅動的機器視覺需求不斷增長，我們最近對Obsidian Sensors 進行了戰略投資，這是一家總部位於聖地亞哥的公司，以其革命性、高分辨率、低成本熱傳感器而聞名，無與倫比的多功能性，即使在完全黑暗的情況下也能檢測熱差、測量溫度和識別遠處的物體。

This investment expands our image sensor portfolio beyond optical sensors to include thermal sensors, a valuable complement to our product suite which is now widened to cover harsh sensing conditions, such as heavy fog or complete darkness.

這項投資將我們的影像感測器產品組合擴展到光學感測器之外，還包括熱感測器，這是對我們產品套件的寶貴補充，該產品套件現已擴大到涵蓋惡劣的感測條件，例如大霧或完全黑暗。

Moreover, this strategic investment promises synergy of the two companies with our WiseEye AI aggregating data from both optical and thermal imaging sensors for a truly holistic view of the environment beyond human vision.

此外，這項策略投資有望透過我們的 WiseEye AI 聚合來自光學和熱成像感測器的數據，實現兩家公司的協同效應，從而獲得超越人類視覺的真正全面的環境視圖。

In addition, we are engaged in ongoing engineering collaborations that leverage Himax's IC design resources and know-how.

此外，我們也利用奇景的 IC 設計資源和專業知識進行持續的工程合作。

We believe by integrating the strength of Himax and Obsidian, we can seize new opportunities in the expanding sensor and AI markets across industrial, defense, security, consumer electronics, and automotive sectors.

我們相信，透過整合奇景和 Obsidian 的優勢，我們能夠在工業、國防、安全、消費性電子和汽車領域不斷擴大的感測器和人工智慧市場中抓住新機會。

As an illustration, the US National Highway Traffic Safety Administration issued a new rule in April 2024, mandating that automatic emergency braking or AEB, including pedestrian AEB or PAEB, be implemented starting in 2029.

例如，美國國家公路交通安全管理局於2024年4月發布了一項新規定，要求從2029年開始實施自動緊急煞車或AEB，包括行人AEB或PAEB。

This regulation aims to significantly reduce rear-end and pedestrian crashes.

該法規旨在顯著減少追撞和行人碰撞事故。

Similar rules are increasingly being mandated by regulatory authorities worldwide.

世界各地的監管機構越來越多地強制實施類似的規則。

The novel ADAS and AEB systems, integrated with Obsidian's thermal sensors, provides clear vision in low-light and adverse weather conditions, such as fog, smoke, rain, and snow.

新穎的 ADAS 和 AEB 系統與 Obsidian 的熱感測器集成，可在低光源和惡劣天氣條件下（如霧、煙、雨和雪）提供清晰的視野。

This ensures better driving safety and security, underscoring the trend and significant potential demand for thermal imaging sensors.

這確保了更好的駕駛安全和安保，凸顯了熱成像感測器的趨勢和巨大的潛在需求。

Last on WLO.

最後在 WLO 上。

During the second quarter, we made a strategic investment in FOCI, a Taiwan-based global leader for silicon photonics connector, through a $16 million private placement, resulting in a 5.3% equity stake.

第二季度，我們透過定向增發1,600萬美元對總部位於台灣的全球矽光子連接器領導者FOCI進行了戰略投資，獲得了5.3%的股權。

This collaboration highlights the immense potential of our WLO technology for LPO/CPO, which are crucial for further advancing high-speed AI and HPC technologies.

此次合作凸顯了我們的 WLO 技術在 LPO/CPO 方面的巨大潛力，這對於進一步推進高速 AI 和 HPC 技術至關重要。

Our partnership integrates FOCI's proprietary LPO/CPO connector technology with Himax's nano-scale wafer level optics know-how to create an industry-leading optical transmission solution catered for the most advanced multi-chip modules, which demand enhanced bandwidth, improved data rate, minimized signal loss, reduced latency, and lower energy consumption, all for accommodating future-generation needs of generative AI and HPC.

我們的合作關係將FOCI 專有的LPO/CPO 連接器技術與Himax 的奈米級晶圓級光學技術相結合，創建業界領先的光傳輸解決方案，滿足最先進的多晶片模組的需求，這些模組需要增強的頻寬、提高的資料速率、最小化訊號遺失、減少延遲和降低能耗，所有這些都是為了滿足生成式人工智慧和高效能運算的未來需求。

Currently, in close collaboration with world leading AI semiconductor players and foundry partner, we are working closely with FOCI on LPO/CPO development for products that meet customers' near-term production goals.

目前，我們與全球領先的人工智慧半導體廠商和代工合作夥伴密切合作，與 FOCI 密切合作，開發滿足客戶近期生產目標的產品的 LPO/CPO。

The LPO/CPO technology is crucial for furthering Generative AI and HPC and will continue to evolve rapidly to meet the explosive demand in these areas.

LPO/CPO 技術對於進一步發展生成式 AI 和 HPC 至關重要，並將繼續快速發展以滿足這些領域的爆炸性需求。

We are committed to advancing the technology with FOCI, ensuring our solutions stay at the cutting edge and align with the multi-year roadmaps of our AI chip and foundry partners/customers.

我們致力於透過 FOCI 推進技術發展，確保我們的解決方案保持領先地位，並與我們的 AI 晶片和代工合作夥伴/客戶的多年路線圖保持一致。

We believe this will generate new, long-lasting revenue streams for Himax.

我們相信這將為奇景創造新的、持久的收入來源。

We will provide further updates as they become available.

我們將在有進一步更新時提供。

As FOCI is a company listed on the Taipei Exchange, the stock price and resulting quote-unquote fair value reflected on our books change each day.

由於 FOCI 是一家在台北證券交易所上市的公司，因此我們帳簿上反映的股票價格和由此產生的報價與未報價公允價值每天都會改變。

These fluctuations have been, and will continue to be, recognized by way of changes in owners' equity as a balance sheet item, not affecting our profit and loss.

這些波動已經並將繼續以所有者權益變動的方式確認為資產負債表項目，不影響我們的損益。

As an illustration, based on the close of FOCI's stock price as of the end of June 2024, we made a quote-unquote gain of $9.6 million on our $16 million FOCI investment.

舉例來說，根據截至 2024 年 6 月底 FOCI 股價的收盤價，我們在 1,600 萬美元的 FOCI 投資中獲得了 960 萬美元的報價收益。

However, the said quote-unquote gain was not recorded as an investment profit in our Q2 financial statements and instead was booked as an increase in owners' equity.

然而，上述報價-非報價收益並未在我們的第二季財務報表中記錄為投資利潤，而是記為所有者權益的增加。

Likewise, upon disposal, the resulting investment gain or loss will also be recognized as a change of equity, through retained earnings, thus not affecting our profit and loss at the time of the disposal either.

同樣，處置時產生的投資損益也將透過留存收益確認為權益變動，因此也不影響處置時的損益。

The accounting method we chose reflects our long-term commitment to the FOCI investment.

我們選擇的會計方法反映了我們對 FOCI 投資的長期承諾。

With over a decade of experience in WLO, Himax has developed diverse designs across a broad spectrum, including 3D sensing, AR/VR devices, biomedical inspection, and optical communication, just to name a few.

憑藉在 WLO 領域十多年的經驗，奇景光電開發了多種廣泛的設計，包括 3D 感測、AR/VR 設備、生物醫學檢測和光通訊等。

These technologies have been widely adopted by some of the world's most prominent tech companies, with cumulative shipments reaching more than 600 million units.

這些技術已被全球一些最著名的科技公司廣泛採用，累計出貨量超過6億台。

We anticipate WLO playing an even more decisive role in the next-generation optical technology landscape, thanks to its versatile, high-precision, lightweight and small form factor characteristics that are not feasible with alternative technologies.

我們預計 WLO 將在下一代光學技術領域發揮更決定性的作用，因為它具有替代技術無法實現的多功能、高精度、輕量級和小外形尺寸的特性。

In addition to the progress made in LPO/CPO, we are seeing an increase in engineering projects with globally recognized leaders who are leveraging our WLO expertise for their upcoming AR/VR devices, underscoring the widespread recognition of our technology.

除了在LPO/CPO 方面取得的進展之外，我們還看到全球知名領導者的工程項目有所增加，他們正在利用我們的WLO 專業知識來開發他們即將推出的AR/VR 設備，這突顯了我們的技術得到了廣泛認可。

For non-driver IC businesses, we expect revenue to decline high teens sequentially in the third quarter.

對於非驅動IC業務，我們預計第三季營收將環比下降高點。

That concludes my report for this quarter.

我本季的報告到此結束。

Thank you for your interest in Himax.

感謝您對奇景光電的關注。

We appreciate you joining today's call and are now ready to take questions.

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) Donnie Teng, Nomura.

（操作員指示）Donnie Teng，野村證券。

Thank you, Jordan, for taking my question.

謝謝喬丹提出我的問題。

My first question is regarding the automotive business.

我的第一個問題是關於汽車業務的。

I think we had started seeing some positive signs back in April and I remember we were pretty positive, you know, back in June and even entering into July.

我認為我們在四月就開始看到一些積極的跡象，我記得我們在六月甚至進入七月都非常積極。

For guidance, looks like to be a little bit disappointing and you just mentioned about customers digesting inventories quickly.

作為指導，看起來有點令人失望，您剛剛提到客戶會快速消化庫存。

Just wondering when exactly you are seeing kind of weakness from the customers.

只是想知道您到底什麼時候看到客戶的弱點。

And also because in mid of July, there has been the news in China that, you know, Chinese Government asking EV companies to check their localization rate in terms of the component in IC procurement.

也因為7月中旬，中國有消息稱，中國政府要求電動車公司檢查其IC採購零件的國產化率。

So wondering if there is any issue there.

所以想知道那裡是否有任何問題。

You know whether we will be like retired by the Chinese EV makers or it's not the case.

你知道我們是否會像中國電動車製造商一樣退休，或者情況並非如此。

Thank you.

謝謝。

Thank you, Donnie.

謝謝你，唐尼。

You are right in that we were more positive last quarter, when we had our conference call then the present moment.

你是對的，上個季度我們召開電話會議時比現在更積極。

And I think the reason behind it, I've already explained in rather detail in my prepared remarks, i.e., the fluctuation in Chinese market is the main factor that are causing the difference in our view.

我想這背後的原因，我在準備好的發言中已經解釋得很詳細了，中國市場的波動是造成我們觀點不同的主要因素。

And as it turns out, our customers were overly optimistic for their second-half outlook entering into Q2 and they were apparently, sourced too many, too much IC inventory and now they are going through the de-stocking process.

事實證明，我們的客戶對進入第二季的下半年前景過於樂觀，他們顯然購買了太多太多的 IC 庫存，現在他們正在經歷去庫存過程。

And also, we also mentioned in our prepared remarks that the US and the European markets are relatively stable compared to China.

另外，我們在準備好的發言中也提到，與中國相比，美國和歐洲市場相對穩定。

Now if you look at the Q3 prospect and also if we look further into Q4, so the over procurement in Q2 and the de-stocking in Q3 kind of explains our changing position in our outlook.

現在，如果你看看第三季的前景，再看看第四季度，那麼第二季的過度採購和第三季的去庫存在某種程度上解釋了我們前景中立場的變化。

Now, the real question is, how is this going to go, going forward.

現在，真正的問題是，未來將如何發展。

And I think, certainly for the longer term, like next year, we remain still pretty positive about the outlook, which I will probably cover in a few minutes.

我認為，從長遠來看，例如明年，我們對前景仍然非常樂觀，我可能會在幾分鐘內討論這一點。

Now, more importantly, what is the near term in Q4 and I'll tell you the truth.

現在，更重要的是，第四季的近期情況是什麼，我會告訴你真相。

Our internal forecast, which was the result of our collective forecast coming from various customers globally, including panel makers and Tier 1s.

我們的內部預測是來自全球各個客戶（包括面板製造商和一級供應商）的集體預測的結果。

Q4 as of today, the projection remains pretty positive with actually a decent double-digit growth compared to Q3.

截至今天，第四季度的預測仍然相當樂觀，與第三季相比，實際上實現了不錯的兩位數成長。

However, we are toning down our Q4 automotive prospect right now given the very recent, I'm talking about last week also, the global turmoil in financial markets, which might impact the consumer confidence in their major, you know, big tickets spending, such as buying new cars.

然而，鑑於最近（我也在上週談論）全球金融市場的動盪，我們現在正在淡化第四季度的汽車前景，這可能會影響消費者對其主要的大額支出的信心，例如購買新車。

But we are uncertain and given the short period of time because the major financial turmoil across the global financial market really occurred only last week.

但我們不確定，而且時間很短，因為全球金融市場的重大金融動盪才真正發生在上週。

So there's no time for us to get feedback from our customers and I suspect there's no time for our customers to get good feedback either from the market.

因此，我們沒有時間從客戶那裡獲得回饋，我懷疑我們的客戶也沒有時間從市場獲得良好的回饋。

So we are like taking a wait and see attitude.

所以我們採取觀望態度。

In fact, as of today, our outlook for Q4 based on our forecast book is still pretty positive.

事實上，截至今天，我們根據預測書對第四季的前景仍然相當樂觀。

And when did the sentiment turn?

情緒何時轉變？

I would say, probably beginning of this quarter, only very recently, but we did see steady, kind of slight pullback of customers' forecast, you know, almost week by week, slightly but steadily and that is certainly not a very promising sight.

我想說，可能是在本季度初，就在最近，但我們確實看到客戶的預測出現了穩定的、輕微的回調，你知道，幾乎每週都會有輕微但穩定的回調，這當然不是一個非常有希望的景象。

Now, on your concerned of China localization, yes, indeed they've made announcements and set targets to further localize their IC supply for China's automotive sectors.

現在，關於您關心的中國本地化問題，是的，他們確實已經發布了公告並設定了目標，以進一步實現中國汽車行業的 IC 供應本地化。

But as far as we are concerned, you know IC, which is automotive IC, which is display ICs, I wouldn't say that, that would not be the threat because any competition is a threat.

但就我們而言，你知道IC，即汽車IC，即顯示IC，我不會說，這不會是威脅，因為任何競爭都是威脅。

But I think our leading edge is now so significant that I can't see any impact of Chinese competition in the near term or in the foreseeable future and compared to consumer electronics, as we all are very aware of, automotive ICs are much harder to replace, and you have to go through a much lengthier ecosystem and let alone the various requirements, higher standards of safety, and other requirements.

但我認為我們的領先優勢現在如此重要，以至於我看不到中國競爭在短期內或可預見的未來產生任何影響，與消費性電子產品相比，我們都非常清楚，汽車IC更難更換，你必須經歷一個更長的生態系統，更不用說各種要​​求、更高的安全標準和其他要求。

So Chinese localization certainly does not play any role in our more conservative outlook for Q3 or going forward into Q4.

因此，在我們對第三季或第四季更保守的展望中，中國本土化肯定不會發揮任何作用。

In fact, next year, if anything, we believe, our market share, especially for those new technologies, such as TDDI, local dimming Tcon or OLED are actually starting next year, we're likely to see some ramping, early ramping.

事實上，如果說明年有什麼變化的話，我們相信，我們的市場份額，特別是那些新技術，例如TDDI、局部調光Tcon 或OLED 實際上會在明年開始，我們可能會看到一些提早的增長。

I think, if anything, we believe quite confidently our market share in automotive display ICs will further rise from this year's level.

我認為，如果有的話，我們非常有信心地相信我們在汽車顯示 IC 的市場份額將比今年的水平進一步上升。

And there's no reason for us to believe next year's automotive market will continue to be very bearish.

我們沒有理由相信明年的汽車市場將繼續非常悲觀。

I mean, I think it's too early for us to form a very solid view for next year.

我的意思是，我認為我們現在對明年形成非常明確的看法還為時過早。

But there's no indication of signs that people's spending on cars will necessarily decrease given the fact that the economy is going through some troubles.

但鑑於經濟正在經歷一些困難，沒有跡象顯示人們在汽車上的支出必然會減少。

But I think governments, authorities, the Feds of different countries are likely to take measures to encourage consumption and boost their GDP's.

但我認為各國政府、當局、聯準會可能會採取措施鼓勵消費並提高國內生產毛額。

Car spending happens to be a major item if the government wants to boost their GDP.

如果政府想要提高國內生產毛額，汽車支出恰好是一個主要項目。

So I think, again, I'm not providing a solid outlook for next year.

因此，我再次認為，我並沒有為明年提供可靠的前景。

But I just want to say there's no reason for us to believe next year will be a bad year for the automotive market.

但我只是想說，我們沒有理由相信明年對汽車市場來說會是個糟糕的一年。

I hope that addresses your question.

我希望這能解決你的問題。

Thanks Jordan and my second question is regarding to the CPO.

謝謝喬丹，我的第二個問題是關於 CPO 的。

So would you maybe elaborate more on, you know, what's the timeline of the CPO product.

那麼能否詳細說明一下 CPO 產品的時間表。

When should we expect to see some, you know, small volume contribution?

我們什麼時候應該看到一些，你知道的，小批量的貢獻？

And how confident you are to ramp up this business in the mid to long term?

您對中長期發展這項業務有多大信心？

Thank you.

謝謝。

Precise timeline, I'm bound by NDA of my partner and customer, so I'm afraid I cannot give you very, very specific date or timetable.

精確的時間表，我受到合作夥伴和客戶的保密協議的約束，所以恐怕我無法給您非常非常具體的日期或時間表。

But I can tell you, what we are working on right now, the design is targeting for mass production.

但我可以告訴你，我們現在正在做的事情，設計是針對量產的。

It is certainly not a R&D concept, a R&D project, it is not.

它當然不是一個研發概念，一個研發項目，它不是。

Actually we're way past the stage and certainly we did that before, years before, but we are way past that stage and we are now pushing towards mass production ASAP.

事實上，我們已經過了這個階段，當然我們幾年前就這樣做過，但我們已經過了那個階段，現在我們正在盡快推動大規模生產。

That's what I can tell you.

這就是我可以告訴你的。

In fact, we expect to see some small but very early result hopefully by the end of this year, but that's minimal.

事實上，我們希望在今年年底之前看到一些小但非常早期的結果，但這很小。

But the next year, you know if everything goes as planned, there will be steady ramping.

但明年，如果一切按計劃進行，將會穩定成長。

And the confidence level mid to long term, I would say very confident.

我想說的是中長期的信心水準非常有信心。

I think we all know about this hunger for more processing power because of generative AI, right.

我想我們都知道由於生成人工智慧而對更多處理能力的渴望，對吧。

And we are we are all very aware of the issues there, you know, the challenge is to further increase your bandwidth, your processing power, your processing speed, but they are all kind of issues including power consumption, heat dissipation, and all that, right?

我們都非常清楚那裡的問題，你知道，挑戰是進一步提高你的頻寬、你的處理能力、你的處理速度，但它們都是各種各樣的問題，包括功耗、散熱等等。的？

And I would say CPO is a relatively low cost and relatively easy, I'm not saying it's easy, I am saying it's relatively easy to fix towards all these issues.

我想說 CPO 的成本相對較低且相對容易，我並不是說它很容易，我是說解決所有這些問題相對容易。

And also cost-wise as well because right now if you analyze the most advanced, you know the HPC ICs or you know, GPU IC's, they have very big processing power, but there bottleneck right now is actually the transmission with the outside, the transmission of the IC.

而且成本方面也是如此，因為現在如果你分析最先進的，你知道 HPC IC 或 GPU IC，它們具有非常大的處理能力，但現在的瓶頸實際上是與外部的傳輸， IC 的傳輸。

The IC can produce a lot of power, data, you know, high bandwidth, super high bandwidth, very fast and it's still the bandwidth is expanding, is expected to expand exponentially over the next few years.

IC可以產生大量的電力、數據，你知道，高頻寬、超高頻寬，速度非常快，而且頻寬還在不斷擴大，預計在未來幾年內將呈指數級增長。

Now with the advanced packaging is going to the, the expansion is going to be, you know, faster.

現在，隨著先進封裝的發展，擴展將會更快。

However, the real bottleneck right now is their transmission capability, their transmission bandwidth which is limited because now they are relying on metal wire to do the transmission.

然而，現在真正的瓶頸是它們的傳輸能力，它們的傳輸頻寬是有限的，因為現在它們依靠金屬線來進行傳輸。

And we all know, there's no secret to really improve, you just need to replace your metal wire with fiber optics.

我們都知道，真正改進並沒有什麼秘密，您只需要用光纖替換金屬線。

And that is exactly what we are trying to achieve, right, that we're trying to help to resolve.

這正是我們正在努力實現的目標，對吧，我們正在努力幫助解決。

And so, if you can successfully replace your metal wire with fiber optics, right away, you boost your bandwidth hugely, and thereby also as a major side benefit, you also reduce your power consumption because the thermal lose will become much less and you'll increase your data accuracy, et cetera, et cetera

因此，如果您能夠立即成功地用光纖取代金屬線，您就可以極大地提高頻寬，從而還有一個主要的附帶好處，您還可以降低功耗，因為熱損失會變得更少，並且您的將提高您的數據準確性等等

So I would say it's a, you know, everybody in the ecosystem is very keen to making sure that this happens ASAP.

所以我想說，生態系統中的每個人都非常渴望確保這一切盡快發生。

And when it happens, because as I mentioned right, it's a relatively cheap and easy fix to their solutions.

當這種情況發生時，因為正如我所提到的，這是對他們的解決方案的相對便宜且簡單的修復。

So I don't see any reason why they should not be adopted across the board, you know, to cover as many of their IC as possible.

因此，我認為沒有任何理由不應該全面採用它們，以涵蓋盡可能多的 IC。

Now I'm only talking about IC's, which demand very high bandwidth.

現在我只談論 IC，它需要非常高的頻寬。

And our goal, our role is to build on the foundation of today to continue to help expand the transmission bandwidth, right?

而我們的目標、我們的作用就是在今天的基礎上繼續幫助擴大傳輸頻寬，對嗎？

And we have a roadmap together with partners, our customers, to really pretty dramatically expand the transmission bandwidth very substantially.

我們與合作夥伴、我們的客戶一起制定了路線圖，以大幅擴展傳輸頻寬。

I'm talking about by multiple times over the next few years.

我在接下來的幾年裡多次談論過這個問題。

And you know, some of these projects are already in experimental stage -- in the earlier experimental stage or more mature experimental stage.

你知道，其中一些項目已經處於實驗階段——處於早期實驗階段或更成熟的實驗階段。

But what I'm trying to tell you is that the 1st generation, upon mass production, will greatly expand the transmission bandwidth of those IC's, already, with further solutions expected to be available, in rather, you know, short time span with multiple times improvement in our transmission bandwidth.

但我想告訴您的是，第一代在批量生產後，將大大擴展這些 IC 的傳輸頻寬，預計將提供進一步的解決方案，您知道，在短時間內，多個我們的傳輸頻寬提高了數倍。

So I think this is really an exciting opportunity for us, for WLO.

所以我認為這對我們、對 WLO 來說確實是一個令人興奮的機會。

I mean, it was a surprise when we realized, you know, a long time ago that our WLO can actually be utilized to tackle this issue.

我的意思是，很久以前，當我們意識到我們的 WLO 實際上可以用來解決這個問題時，我們感到很驚訝。

But as we dig further and further, we realized this is actually a very, very perfect solution, a very perfect fix for the data transmission bandwidth issue that is now faced by this AI technology advancement.

但隨著我們越來越深入地挖掘，我們意識到這實際上是一個非常非常完美的解決方案，非常完美地解決了人工智慧技術進步現在面臨的資料傳輸頻寬問題。

Any further questions from Donnie or others?

唐尼或其他人還有其他問題嗎？

Ladies and gentlemen, we are still in Q&A session.

女士們先生們，我們仍在問答環節。

(Operator Instructions) Thank you.

（操作員說明）謝謝。

As a final note, Eric Li, our Chief IR/PR Officer, will maintain investor marketing activities and continue to attend investor conferences.

最後一點，我們的首席投資者關係/公關長 Eric Li 將維持投資者行銷活動並繼續參加投資者會議。

We will announce the details as they come about.

我們將在細節出現時公佈。

Thank you and have a nice day.

謝謝您，祝您有愉快的一天。