奇景光電 (HIMX) 2025 Q2 法說會逐字稿

Hello, ladies and gentlemen, welcome to Himax Technologies Incorporation second-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the conference over to Ms. Karen Tiao, Head of IR PR at Himax. Ms. Tao, please go ahead.

女士們、先生們，大家好，歡迎參加 Himax Technologies Incorporation 2025 年第二季財報電話會議。(操作員指示) 提醒一下，本次電話會議正在錄音。現在，我想將會議交給奇景光電投資者關係公關主管 Karen Tiao 女士。陶小姐，請講。

Welcome, everyone, to the Himax second-quarter 2025 earnings call. My name is Karen Tiao, Head of IR PR at Himax. Joining me today are Jordan Wu, President and Chief Executive Officer, and Jessica Pan, Chief Financial Officer.

歡迎大家參加 Himax 2025 年第二季財報電話會議。我叫 Karen Tiao，是 Himax 的投資人關係公關主管。今天與我一起出席的還有總裁兼執行長 Jordan Wu 和財務長 Jessica Pan。

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

在公司準備好評論之後，我們在問答環節安排了提問時間。如果您尚未收到今天的結果報告副本，請發送電子郵件至 hx_ir@himax.com.tw 或 himx@mzgroup.us，在金融入口網站上訪問新聞稿，或從 Himax 網站 www.himax.com.tw 下載副本。

Before we begin the formal remarks, I would like to remind everyone that some of the statements in this conference call, including the statements regarding expected future financial results and industry growth, are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this conference call. A list of the risk factors can be found in the company's SEC filings, Form 20-F for the year ended December 31, 2024, in the section entitled Risk Factors as may be amended.

在我們開始正式發言之前，我想提醒大家，本次電話會議中的某些陳述，包括有關預期未來財務業績和行業增長的陳述，屬於前瞻性陳述，涉及許多風險和不確定性，可能導致實際事件或結果與本次電話會議中描述的情況存在重大差異。風險因素清單可在公司向美國證券交易委員會 (SEC) 提交的截至 2024 年 12 月 31 日的 20-F 表格的「風險因素（可能修訂）」部分中找到。

Except for the company's full year of 2024 financials, which were provided in the company's 20-F and filed with the SEC on April 2, 2025, the financial information included in this conference call is unaudited and consolidated and prepared in accordance with IFRS accounting. Such financial information is generated internally and has not been subjected to the same review and scrutiny, including internal auditing procedures and external audits by an independent auditor to which we subject our annual consolidated financial statements, and may vary materially from the audited consolidated financial information for the same period. The company undertakes no obligation to publicly update or revise any forward-looking statements, which as a result of new information, future events, or otherwise.

除本公司 2024 年全年財務資料（已在本公司 20-F 文件中提供並於 2025 年 4 月 2 日提交給美國證券交易委員會 (SEC)）外，本次電話會議中包含的財務資訊均未經審計，並根據國際財務報告準則 (IFRS) 會計進行合併和編制。此類財務資訊由內部生成，並未經過與年度合併財務報表相同的審查和審查，包括內部審計程序和獨立審計師的外部審計，因此可能與同期經審計的合併財務資訊有重大差異。本公司不承擔因新資訊、未來事件或其他原因而公開更新或修改任何前瞻性聲明的義務。

On today's call, I will first review Himax's consolidated financial performance for the second quarter of 2025, followed by our third-quarter outlook. Jordan will then give an update on the status of our business, and after which we will take questions. (Event Instructions) We will review our financials on an IFRS basis.

在今天的電話會議上，我將首先回顧奇景光電 2025 年第二季的綜合財務業績，然後回顧第三季的展望。喬丹隨後將介紹我們業務的最新情況，然後我們將回答問題。（事件說明）我們將根據國際財務報告準則審查我們的財務狀況。

During the second quarter, broadening US tariff measures continue to intensify global trade tensions, heightening macroeconomic and demand uncertainty. This was compounded further by the abrupt and significant depreciation of the NT dollar against the US dollar during the quarter. Jordan will elaborate on the impact of NT dollar fluctuation on our financials in a moment. Despite these headwinds, we are pleased to report that our Q2 gross margin exceeded the guidance provided on May 8, 2025, while the gross revenue and profit came in within the projected range.

第二季度，美國擴大關稅措施持續加劇全球貿易緊張局勢，加劇了宏觀經濟和需求的不確定性。本季新台幣兌美元的突然大幅貶值進一步加劇了這一情況。喬丹稍後將詳細說明新台幣波動對我們財務的影響。儘管面臨這些不利因素，我們仍然很高興地報告，我們的第二季毛利率超過了 2025 年 5 月 8 日提供的指引，而總收入和利潤也在預期範圍內。

Second-quarter revenues registered $214.8 million, representing a sequential decline of 0.2%, better than the midpoint of the guidance range, which was a 5.0% decline to 3.0% increase. Gross margin was 31.2%, outperforming our guidance of around 31% and improving from 30.5% in the prior quarter, primarily driven by a favorable product mix.

第二季營收為 2.148 億美元，季減 0.2%，優於預期範圍的中點（下降 5.0% 至成長 3.0%）。毛利率為 31.2%，高於我們預期的 31% 左右，且較上一季的 30.5% 有所提高，這主要得益於有利的產品組合。

Q2 profit per diluted ADS was $0.095 within the guidance range of $0.085 to $0.115. Revenue from large display drivers came in at $24.9 million, representing a slight decline of 0.6% from the previous quarter. Both notebook and monitor IC sales declined in Q2, while TV IC sales outperformed guidance with a single-digit sequential increase driven by higher shipments to key customers after several subdued quarters.

第二季每股美國存託憑證攤薄利潤為0.095美元，符合0.085美元至0.115美元的預期範圍。大型顯示器驅動器業務營收為2,490萬美元，較上一季小幅下降0.6%。第二季度筆記型電腦和顯示器 IC 銷售額均出現下滑，而電視 IC 銷售額則超出預期，在經歷了幾個低迷的季度後，由於對主要客戶的出貨量增加，銷售額實現了個位數的環比增長。

Sales of large driver IC accounted for 11.6% of total revenue for the quarter, compared to 11.6% last quarter and 16.3% a year ago. Revenue from the small- and medium-sized display driver segment totaled $144.5 million, reflecting a sequential decline of 4.0%. However, Q2 automotive driver sales, including both traditional DDIC and TDDI, outperformed our guidance of mid-teens sequential decline, posting only a single-digit decrease quarter-over-quarter.

大型驅動IC銷售額佔本季總營收的11.6%，上季為11.6%，去年同期為16.3%。中小尺寸顯示器驅動器部門的收入總計1.445億美元，季減4.0%。然而，包括傳統 DDIC 和 TDDI 在內的第二季度汽車驅動器銷量表現超出了我們預期的環比下降幅度，環比僅下降了個位數。

The sequential decline reflected the combined impact of tariffs and the tapering effect of the Chinese automotive subsidy program. Net automotive driver sales for the first half of 2025 still recorded a 3.2% year-over-year increase, indicating resilient underlying demand despite global softness in automotive sales.

環比下降反映了關稅和中國汽車補貼計劃縮減效應的綜合影響。2025 年上半年汽車淨驅動銷售額仍年增 3.2%，顯示儘管全球汽車銷售疲軟，但潛在需求依然強勁。

Our automotive business, comprising DDIC, TDDI, Tcon, and OLED IC sales, remains the largest revenue contributor in the second quarter, representing approximately 50% of total revenue. Meanwhile, Q2 smartphone IC sales outperformed our guidance of the mid-teens sequential decline, showing a slight increase from the prior quarter, mainly driven by the order from a leading customer.

我們的汽車業務包括 DDIC、TDDI、Tcon 和 OLED IC 銷售，仍然是第二季最大的收入貢獻者，約佔總收入的 50%。同時，第二季智慧型手機 IC 銷售量超出了我們預期的環比下降幅度，較上一季略有成長，主要得益於主要客戶的訂單。

Our tablet driver sales increased as expected, supported by renewed demand from leading customers following several quarters of softer demand. The small- and medium-sized display driver IC segment accounted for 67.3% of total sales for the quarter, compared to 70.0% in the previous quarter and 66.3% a year ago. Q2 non-driver sales reached $45 million, a 14.7% increase from the previous quarter.

在經歷了幾個季度的疲軟之後，主要客戶的需求重新復甦，推動了我們的平板電腦驅動器銷售量如預期般增長。中小尺寸顯示器驅動IC部分佔本季總銷售額的67.3%，而上一季為70.0%，去年同期為66.3%。第二季非駕駛員銷售額達到 4,500 萬美元，較上一季成長 14.7%。

The sequential increase was primarily attributable to the increased shipment of Tcon for automotive and monitor products. Himax continued to hold an undisputed leadership position with a dominant market share in automotive Tcon, particularly in solutions featuring local functionality.

環比成長主要歸因於汽車和顯示器產品用Tcon出貨量的增加。Himax 繼續保持無可爭議的領導地位，在汽車 Tcon 領域佔據主導地位，尤其是在具有本地功能的解決方案方面。

Our growing pipeline, now exceeding 200 design wins, is poised to transition into mass production over the next few years. Tcon business accounted for over 12% of total sales, with notable contributions from automotive Tcon. Non-driver products accounted for 21.1% of total revenues as compared to 18.4% in the previous quarter and 7.4% a year ago.

我們的產品線不斷擴大，目前已獲得超過 200 個設計訂單，並將在未來幾年內轉入大規模生產。Tcon業務佔總銷售額的12%以上，其中汽車Tcon的貢獻顯著。非駕駛產品佔總收入的 21.1%，而上一季為 18.4%，去年同期為 7.4%。

Second-quarter operating expenses were $48.9 million, an increase of 6.9% from the previous quarter and 3.3% from a year ago. The appreciation of the NT dollar against the US dollar in Q2 was the key factor behind the sequential increase. Similar factors drove the year-over-year increase, though it was partially offset by the decline in employee bonus compensation due to the decline in the annual bonus expenses for the amortized purchase of the previous year's bonuses.

第二季營運費用為 4,890 萬美元，較上一季成長 6.9%，較去年同期成長 3.3%。第二季新台幣兌美元的升值是季增的關鍵因素。類似的因素推動了同比增長，但由於攤銷購買上一年度獎金的年度獎金費用下降，導致員工獎金薪酬下降，部分抵消了這一增長。

Excluding the impact of NT dollar appreciation, second-quarter operating expenses would have remained flat year-over-year amid ongoing macroeconomic challenges. We remain vigilant in invoicing, budget, and expense control.

剔除新台幣升值的影響，在持續的宏觀經濟挑戰下，第二季營業費用將與去年同期持平。我們將繼續嚴格控制發票、預算和費用。

Second-quarter operating income was $18.1 million, representing an operating margin of 8.4% compared to 9.2% last quarter and 12.2% for the same period last year. Operating profit declined 8.6% sequentially, mainly due to higher operating expenses, partially offset by an increase in gross margin and gross profit. Excluding the impact of NT dollar appreciation on Q2 expenses, operating income increased slightly compared to the previous quarter.

第二季營業收入為 1,810 萬美元，營業利潤率為 8.4%，上一季為 9.2%，去年同期為 12.2%。營業利潤季減 8.6%，主要原因是營業費用增加，但被毛利率和毛利的增加部分抵銷。若撇除新台幣升值對第二季費用的影響，營業利益較上季略有增加。

Operating profit declined 38.1% year-over-year, primarily due to lower sales and reduced gross margin. Second quarter after-tax profit was $16.5 million or $0.95 per diluted ADS compared to $20.0 million or $0.14 per diluted ADS last year and down from $29.6 million or $0.59 in the same period last year.

營業利潤較去年同期下降38.1%，主要原因是銷售額下降和毛利率下降。第二季稅後利潤為1,650萬美元，即每股美國存託憑證攤薄利潤0.95美元，而去年同期為2,000萬美元，即每股美國存託憑證攤薄利潤0.14美元，也低於去年同期的2,960萬美元，即每股美國存託憑證攤薄利潤0.59美元。

Turning to the balance sheet. We had $332.8 million of cash, cash equivalents, and other financial assets as of June 30, 2025. This compares to $253.8 million at the same time last year and $281 million a year ago. The sequential increase was mainly driven by the strong positive operating cash flow of $50.5 million in the second quarter.

轉向資產負債表。截至 2025 年 6 月 30 日，我們擁有 3.328 億美元的現金、現金等價物和其他金融資產。相較之下，去年同期為 2.538 億美元，去年同期為 2.81 億美元。環比成長主要得益於第二季強勁的 5,050 萬美元正營運現金流。

Looking ahead to Q3, we anticipate a decline in cash, cash equivalents, and other financial assets primarily due to a payment of $64 million for the annual dividend to shareholders, which was made on July 11. In addition, subject to final Board decision, we will distribute a total of approximately $13.3 million for employee bonus awards at the end of the third quarter, which includes a $7.2 million for the immediately vested portion of this year's award and $6.1 million for the vested award granted over the past three years.

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減少，主要原因是 7 月 11 日向股東支付了 6,400 萬美元的年度股息。此外，根據董事會的最終決定，我們將在第三季末發放總計約 1,330 萬美元的員工獎金，其中包括今年立即歸屬的 720 萬美元獎金和過去三年授予的 610 萬美元獎金。

Our quarter-end inventory was $134.6 million, higher than the $129.9 million last quarter but lower than the $203.7 million a year ago. After 10 consecutive quarters of inventory decline from its peak during the industry-wide supply shortage, Q2 inventory has slightly increased, but is now still at a healthy level. As economic uncertainty limits visibility across the ecosystem, we will continue to manage our inventory conservatively.

我們的季末庫存為 1.346 億美元，高於上一季的 1.299 億美元，但低於去年同期的 2.037 億美元。在經歷了連續10個季度的庫存下降之後，在全行業供應短缺的時期，庫存達到了峰值，第二季度庫存略有增加，但目前仍處於健康水平。由於經濟不確定性限制了整個生態系統的可見性，我們將繼續保守地管理我們的庫存。

Accounts receivable at the end of June 2025 were $219 million, a slight increase from the $217.5 million last quarter, but down from $242.4 million a year ago. DSO was 92 days at the quarter end as compared to 91 days last quarter and 99 days a year ago.

2025 年 6 月底的應收帳款為 2.19 億美元，較上一季的 2.175 億美元略有增加，但低於去年同期的 2.424 億美元。本季末的 DSO 為 92 天，而上一季為 91 天，去年同期為 99 天。

Second-quarter capital expenditure was $4.6 million versus $5.2 million last quarter and $4.6 million a year ago. Second-quarter CapEx was mainly for R&D-related equipment for our IC design business and the construction in progress for the new preschool near our Thailand headquarters, built to employ children. As of June 30, 2025, Himax had [174.3 million] ADS outstanding, a decline from last quarter.

第二季資本支出為 460 萬美元，上一季為 520 萬美元，去年同期為 460 萬美元。第二季度的資本支出主要用於我們積體電路設計業務的研發相關設備以及我們泰國總部附近的新幼兒園的在建工程，該幼兒園旨在為兒童提供就業機會。截至 2025 年 6 月 30 日，奇景光電的未償還 ADS 為 [1.743 億] 股，較上一季下降。

And on a fully diluted basis, the total number of ADS outstanding for the second quarter was $174.5 million. Now turning to our third quarter 2025 guidance. We expect third quarter revenues to decrease 12% to 17% sequentially. Gross margin is expected to be around 30%, depending on product mix. The third-quarter loss attributable to shareholders is estimated to be in the range of $0.20 to $0.40 per fully diluted ADS.

以完全稀釋後計算，第二季流通在外的美國存託憑證總額為 1.745 億美元。現在談談我們的 2025 年第三季指引。我們預計第三季營收將季減 12% 至 17%。預計毛利率約為 30%，視產品組合而定。預計第三季歸屬於股東的虧損在每股完全稀釋美國存託憑證 0.20 美元至 0.40 美元之間。

As we have done historically, we will grant employees an annual bonus, including RSU and cash awards, on or around September 13 this year. Our third-quarter guidance of a loss per diluted ADS has taken into account the effective 2025 annual bonus, which, subject to Board approval, is now assumed to be around $7.5 million, out of which $7.2 million was invested and expensed immediately on the grant date.

正如我們過去所做的那樣，我們將在今年 9 月 13 日左右向員工發放年度獎金，包括 RSU 和現金獎勵。我們對第三季每股攤薄美國存託憑證虧損的預期已將 2025 年有效年度獎金考慮在內，該獎金經董事會批准後目前預計約為 750 萬美元，其中 720 萬美元已投資並在授予日立即計入費用。

As a reminder, the total annual bonus amount and the immediately vested portion are our current best estimates only, and the actual amount could vary materially depending on, among other things, our Q4 profit and the final board decision for the total bonus amount and vesting. As is the case for previous years, we expect the annual bonus grant in 2025 to lead to higher third-quarter operating expenses compared to the other quarter of the year. In comparison, the annual bonuses for 2024 and 2023 were $12.5 million and $10.4 million, respectively, of which $11.2 million and $9.7 million vested immediately.

提醒一下，年度獎金總額和立即歸屬的部分只是我們目前的最佳估計，實際金額可能會有很大差異，具體取決於我們的第四季度利潤以及董事會對獎金總額和歸屬的最終決定等因素。與往年一樣，我們預計 2025 年的年度獎金發放將導致第三季的營運費用高於一年中其他季度。相較之下，2024 年和 2023 年的年度獎金分別為 1,250 萬美元和 1,040 萬美元，其中 1,120 萬美元和 970 萬美元立即歸屬。

In providing our Q3 financial guidance, the Q3 expenses related to employee bonuses are estimated to be $8.2 million, representing $0.04 per diluted ADS before tax, comprised of $7.2 million, the immediately vested portion of this bonus stated above, and $1.0 million, the amortized portion of the unvested bonuses from the previous year. Employee bonus expense in each of the last three quarters was also around $0.8 million.

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 820 萬美元，相當於稅前每股稀釋 ADS 0.04 美元，其中包括 720 萬美元（上述該獎金的立即歸屬部分）和 100 萬美元（上一年未歸屬獎金的攤銷部分）。過去三個季度的員工獎金支出也每季都在 80 萬美元左右。

I will now turn the call over to Jordan to discuss our Q3 2025 outlook. Jordan, the floor is yours.

現在我將把電話轉給喬丹，討論我們對 2025 年第三季的展望。喬丹，現在請你發言。

Thank you, Karen. Uncertainty surrounding tariff policies persisted across the global economy throughout the third quarter and into July. However, starting in August, the US began clarifying its tariff measures towards most of the countries, including major economies such as Japan and the EU developments have helped reduce uncertainty in the global trade environment.

謝謝你，凱倫。在整個第三季和七月份，全球經濟的關稅政策不確定性持續存在。不過，自8月起，美國開始明確對包括日本和歐盟等主要經濟體在內的大多數國家採取的關稅措施，有助於減少全球貿易環境的不確定性。

That said, less than 24 hours ago, the US government announced plans to impose tariffs of approximately 100% on semiconductor chips imported from companies that do not manufacture in the United States. As the details of the new tariff plan have yet to be released, we are unable to comment further regarding its potential impact at this time. We are closely monitoring the situation and will respond accordingly.

話雖如此，不到24小時前，美國政府宣布計劃對從非美國本土生產的公司進口的半導體晶片徵收約100%的關稅。由於新關稅計劃的細節尚未公佈，我們目前無法進一步評論其潛在影響。我們正在密切關注事態發展並將採取相應措施。

It is worth noting that tariffs have not had a significant direct impact on Himax's business, as our IP products are not directly exported to the US. Instead, they are integrated into panels or modules by customers outside the United States, and they are sold globally, including in the US market. Only a negligible portion, about 2% of Himax's products, are shipped directly to the US. In the automotive sector, the US recently reached separate agreements with the EU, Japan, and Korea.

值得注意的是，關稅並未對奇景光電的業務產生重大直接影響，因為我們的IP產品並未直接出口到美國。相反，它們被美國以外的客戶整合到面板或模組中，並銷往全球，包括美國市場。只有極小一部分（約 2%）的奇景光電產品直接運往美國。在汽車領域，美國最近與歐盟、日本和韓國分別達成協議。

These tariff agreements among the world's major automotive manufacturing and consumption regions help ease market uncertainty, and trade and shipments among these markets are expected to gradually normalize. Notwithstanding these early signs of clarity regarding automotive tariffs, given the timing of the announcements, which were made just days prior to this earnings call, we have not yet received any customer adjustments in demand for automotive ICs in response to the new tariffs.

全球主要汽車生產和消費地區之間的這些關稅協議有助於緩解市場不確定性，這些市場之間的貿易和運輸預計將逐步正常化。儘管汽車關稅方面出現了這些明確的早期跡象，但考慮到公告發布的時間是在本次財報電話會議前幾天，我們尚未收到任何客戶因新關稅而對汽車集成電路需求進行的調整。

The situation remains dynamic and subject to further observation. Overall, automotive market demand visibility remains low, with customers continuing to adopt a cautious stance by maintaining low inventory levels and delaying new product introductions. As a result, we are maintaining a conservative outlook for the third quarter and continuing our strategy of strict expense controls while actively reducing procurement costs and enhancing supply flexibility.

情況仍在動態中，有待進一步觀察。總體而言，汽車市場需求可見度仍然較低，客戶繼續採取謹慎立場，維持低庫存水準並推遲新產品的推出。因此，我們對第三季保持保守的展望，繼續嚴格控制費用的策略，同時積極降低採購成本並增強供應彈性。

At the same time, we are accelerating the geographic diversification of our foundry and back-end vendors to address customers' diversified deployment needs stemming from geopolitical considerations. This strategy aims to strengthen our global manufacturing resilience and reduce risks associated with regional concentration. In the automotive sector, we remain optimistic about our long-term business outlook, primarily driven by the continued upgrade of smart cockpits where displays serve as a key component, fueling market growth.

同時，我們正在加速代工廠和後端供應商的地理多元化，以滿足客戶出於地緣政治考量而產生的多樣化部署需求。該策略旨在增強我們的全球製造業彈性並降低與區域集中相關的風險。在汽車領域，我們對長期業務前景保持樂觀，主要原因是智慧駕駛艙的持續升級，其中顯示器作為關鍵部件，推動了市場成長。

With nearly two decades of dedicated experience in the automotive field, Himax offers the industry's most advanced and comprehensive automotive display IC solutions, spanning LCD to OLED technologies. Himax holds the number one global market share across all segments of automotive display ICs with an over lead over competitors.

奇景光電在汽車領域擁有近二十年的專注經驗，提供業界最先進、最全面的汽車顯示 IC 解決方案，涵蓋 LCD 到 OLED 技術。奇景光電在汽車顯示IC各領域均佔據全球第一的市場份額，遙遙領先競爭對手。

Looking ahead, we expect continued growth in automotive TDDI and Tcon technologies, both of which are relatively new and advanced display solutions for vehicles. To date, these technologies have been successfully designed into hundreds of projects worldwide, with approximately one-third already in mass production and the remainder expected to enter mass production within the next few years.

展望未來，我們預計汽車 TDDI 和 Tcon 技術將持續成長，這兩者都是相對較新且先進的車載顯示解決方案。迄今為止，這些技術已成功應用於全球數百個項目，其中約三分之一已實現量產，其餘項目預計將在未來幾年內實現量產。

In the area of traditional automotive DDIC, although DDICs have gradually been replaced by TDDI panels with touch functionality, traditional DDICs remain essential for applications such as dashboards, SUVs, and rear and mirrors, which do not require touch integration. In addition, Himax has spent years cultivating its automotive OLED business in close collaboration with leading panel makers. The number of new project engagements is rising rapidly, and starting in 2027, automotive OLED-related growth momentum is expected to accelerate significantly, making it one of our key long-term revenue drivers.

在傳統汽車 DDIC 領域，雖然 DDIC 已逐漸被具有觸控功能的 TDDI 面板所取代，但對於儀表板、SUV 以及後視鏡等不需要觸摸整合的應用，傳統 DDIC 仍然至關重要。此外，奇景光電多年來一直與領先的面板製造商密切合作，培育其汽車 OLED 業務。新項目承接數量正在快速增加，預計從 2027 年開始，汽車 OLED 相關成長勢頭將顯著加速，成為我們長期的主要收入驅動力之一。

Despite limited visibility to the second half of the year, the recent clarification of tariff policies and continued low inventory levels at panel customers provide some positive signals. We will remain prudent in navigating market dynamics by continuing to closely monitor customer demand.

儘管下半年的前景有限，但近期關稅政策的明朗化以及面板客戶庫存水準持續處於低位，提供了一些正面訊號。我們將持續密切關注客戶需求，謹慎應對市場動態。

Throughout the ongoing macroeconomic uncertainty, we remain committed to expanding beyond display ICs into new business areas characterized by high growth potential, high added value, and high technological barriers, areas expected to drive our long-term growth. Himax has been deeply engaged in this field for one or two decades, establishing significant technical barriers and securing a robust portfolio of key patents. As all these efforts begin to bear fruit, they are expected to inject strong momentum into future operations.

在持續的宏觀經濟不確定性中，我們仍致力於從顯示積體電路擴展到具有高成長潛力、高附加價值和高科技障礙的新業務領域，這些領域有望推動我們的長期成長。奇景光電在此領域深耕一二十年，建立了強大的技術壁壘，並累積了一批關鍵專利。隨著所有這些努力開始取得成果，預計將為未來的營運注入強勁動力。

First, in the WiseEye AI domain, we continue to collaborate with several leading notebook brands such as Dell and Laser, achieving significant results. We expect this growth to continue over the coming years by adding more leading notebook customers and introducing further AI features to the notebook. In addition, Himax has made both technological and market breakthroughs in additional battery-powered applications such as small balls, powered recognition, and smart home, jointly developing unprecedented and innovative AI applications with top-tier global customers.

首先，在WiseEye AI領域，我們持續與Dell、Laser等多家領先的筆記型電腦品牌合作，並取得顯著成果。我們預計，未來幾年這種成長動能將持續下去，屆時將有更多領先的筆記型電腦客戶加入，並為筆記型電腦引入更多 AI 功能。此外，奇景光電在小球、動力辨識、智慧家庭等附加電池供電應用領域也取得技術與市場的突破，與全球頂級客戶共同開發前所未有的創新AI應用。

These applications are mostly battery-powered, showcasing WiseEye's unique advantage in ultra-low power computing. Further, a recent major application addition is in smart glasses, where WiseEye has gained strong design traction due to the stringent power efficiency requirements of smart glasses.

這些應用大多採用電池供電，展現了WiseEye在超低功耗運算方面的獨特優勢。此外，最近增加的一個主要應用領域是智慧眼鏡，由於智慧眼鏡對電源效率的嚴格要求，WiseEye 在該領域獲得了強大的設計吸引力。

Looking ahead, the WiseEye business is entering the phase of revenue growth after years of customer and application development, becoming one of our key growth drivers. In the field of co-package optics or CPO, Himax's proprietary WLO technology plays a critical role. Together with our partner, we have achieved a significant breakthrough in silicon photonics technology, with the first-generation solution being validated by our anchor customers/partners.

展望未來，經過多年的客戶和應用開發，WiseEye業務正進入收入成長階段，成為我們的主要成長動力之一。在共封裝光學元件或 CPO 領域，Himax 專有的 WLO 技術發揮關鍵作用。我們與合作夥伴共同在矽光子技術上取得了重大突破，第一代解決方案已經得到我們主要客戶/合作夥伴的驗證。

We are working towards the goal of entering mass production in 2026. Meanwhile, Himax and FOCI are collaborating with several heavyweight customers and partners to jointly develop future-generation high-speed optical transmission technologies to meet the explosive bandwidth demand of HPC and AI applications, while also helping to address the pain point of overheating associated with high-speed transmission.

我們正努力實現2026年實現量產的目標。同時，奇景光電與FOCI正與多家重量級客戶及合作夥伴攜手開發未來一代高速光傳輸技術，以滿足HPC及AI應用爆發式的頻寬需求，並協助解決高速傳輸過熱的痛點。

Turning to smart glasses. After years of warm consumer reception, smart glasses are getting extraordinary market attention of late and becoming a segment of strategic importance for Himax. With the adoption of generative AI and large language models, AI and AI glasses are widely expected by the industry to become the next breakout market.

轉向智能眼鏡。智慧眼鏡多年來一直受到消費者的熱烈歡迎，近年來更是獲得了非凡的市場關注，並成為奇景光電的重要策略性板塊。隨著生成式人工智慧和大型語言模式的採用，人工智慧和人工智慧眼鏡被業界普遍預期將成為下一個突破性市場。

Numerous world-class hyperscalers and specialized smart glasses developers from around the globe are actively investing in the development of new smart glasses, with China in particular leading the way in terms of the number of players. Himax stands out as one of the few companies in the industry to possess three critical enabling technologies for smart glasses, namely ultra-low power intelligent sensing, metro display, and nano optics, giving it a unique competitive advantage in this emerging field.

全球眾多世界級的超大規模企業和專業智慧眼鏡開發商正在積極投資新型智慧眼鏡的開發，其中中國在參與者數量方面處於領先地位。奇景光電是業界少數同時掌握超低功耗智慧感測、地鐵顯示器、奈米光學三大智慧眼鏡關鍵使能技術的公司，在這一新興領域擁有獨特的競爭優勢。

In intelligent sensing, Himax's WiseEye AI delivers all-day ultra-low power contextual awareness with average power consumption of just a few watts. It significantly enhances the activity and perception of smart glasses while preserving battery life and data privacy. The technology has been widely adopted and successfully integrated into the next-generation smart glasses of multiple customers.

在智慧感知方面，奇景光電的WiseEye AI可提供全天候超低功耗情境感知，平均功耗僅幾瓦。它顯著增強了智慧眼鏡的活動和感知能力，同時保護了電池壽命和資料隱私。該技術已被廣泛採用並成功整合到多個客戶的下一代智慧眼鏡中。

In micro display, Himax's latest microdisplay features 350,000 nits of brightness, exceptional optical power efficiency, and outstanding image quality, all in an extremely compact and lightweight form factor. It is considered the most commercially viable solution closest to the ideal microdisplay for seeing through AI glasses.

在微顯示方面，奇景最新的微顯示器具有 350,000 尼特的亮度、卓越的光學功率效率和出色的圖像質量，並且外形極其緊湊輕巧。它被認為是最接近理想的AI眼鏡微顯示器的商業化可行解決方案。

Since its debut at Display Week 2025, the module has drawn strong attention and is soon entering the stages with multiple customers. In the field of nano optics, Himax offers proprietary WLO technology for advanced nano optical foundry service to selected customers, developing solutions that can significantly enhance both transmission and display efficiency of AI glasses.

自 2025 年顯示週首次亮相以來，模組就引起了強烈關注，並很快將進入多個客戶的階段。在奈米光學領域，奇景光電為特定客戶提供專有的WLO技術，提供先進的奈米光學代工服務，開發出可顯著提升AI眼鏡傳輸和顯示效率的解決方案。

Looking ahead, we expect revenues from AR and AI glasses-related applications to grow substantially over the next few years, becoming a key driver of the company's mid- to long-term growth. Lastly and before I get into comments on the specific sectors, regarding foreign exchange, while Himax is a Taiwan-based company, our financial statements are US dollar-dominated.

展望未來，我們預期未來幾年AR及AI眼鏡相關應用的營收將大幅成長，成為公司長期成長的關鍵驅動力。最後，在我對具體行業發表評論之前，關於外匯，雖然奇景光電是一家台灣公司，但我們的財務報表是以美元為主的。

Since both our revenue and cost of goods sold are in US dollars, this provides a natural hedge for Himax's trade activities. Additionally, a portion of our operating expenses is also in US dollars, offering further natural hedging. The non-USD-denominated operating expenses primarily include employee salaries and utility costs.

由於我們的收入和銷售成本都是以美元計算的，這為奇景光電的貿易活動提供了自然的對沖。此外，我們的部分營運費用也是以美元支付的，從而提供了進一步的自然對沖。非美元計價的營運費用主要包括員工薪資和水電費。

Other non-US dollar expenses are mainly OpEx taxes. Overall, the impact of currency fluctuations on Himax's financials is relatively limited. Based on internal estimates at around current revenue levels, a 1% appreciation of the NT dollar against the US dollar will reduce operating margin by approximately 0.15%.

其他非美元支出主要是營運支出稅。整體而言，匯率波動對奇景光電財務狀況的影響相對有限。根據內部估算，目前營收水準左右，新台幣兌美元升值1%將導致營業利益率下降約0.15%。

Himax's third quarter financial guidance is calculated based on TWD29.4 against the US dollar, which is equivalent to the daily average of the quarter after the day before the earnings call. With that, I will now begin with an update on the large panel driver IC business. In Q3, large display driver IC sales are expected to decline by double digits sequentially. Amid the volatile macro environment, most panel customers remain cautious, adhering to a make-to-order model and maintaining lean inventories in response to a murky demand outlook.

奇景光電第三季的財務指引是根據新台幣兌美元匯率29.4計算得出的，相當於財報電話會議前一天之後該季度的日平均值。現在我將開始介紹大型面板驅動IC業務的最新情況。第三季度，大型顯示器驅動IC銷售額預計將季減兩位數。在動盪的宏觀環境下，大多數面板客戶仍保持謹慎，堅持按訂單生產模式，並保持精益庫存，以應對不明朗的需求前景。

The absence of traditional seasonal shopping momentum, coupled with customers pulling forward purchases in previous quarters, is expected to drive declines across all 3 product lines in the large panel driver IC segment for Q3. In the notebook sector, we continue to focus on the growing trend among premium models to adopt OLED displays and touch features.

由於缺乏傳統季節性購物勢頭，加上客戶在前幾個季度提前購買，預計第三季大面板驅動 IC 領域所有 3 條產品線的銷量都將出現下滑。在筆記型電腦領域，我們持續關注高階機型採用 OLED 顯示器和觸控功能的成長趨勢。

This shift is driven in part by the rise of AI PCs and increasing demand for more interactive technologies that enhance user experience, boost productivity, and support creative applications. Himax is well-positioned to capitalize on this trend by offering a comprehensive range of ICs for both LCD and OLED notebooks, including DDIC, Tcon, touch controllers, and TDDI. In addition, we are expanding our high-speed interface product portfolio to support faster data transmission, low latency, and improve power efficiency features that are critical for next-generation displays.

這種轉變在一定程度上是由人工智慧個人電腦的興起以及對增強用戶體驗、提高生產力和支援創意應用的更多互動技術的需求不斷增長所推動的。Himax 憑藉其為 LCD 和 OLED 筆記型電腦提供全面的 IC（包括 DDIC、Tcon、觸控控制器和 TDDI）的優勢，充分利用了這一趨勢。此外，我們正在擴展我們的高速介面產品組合，以支援更快的資料傳輸、低延遲和提高對下一代顯示器至關重要的電源效率功能。

Turning to the small and medium-sized display driver IC business. In Q3, small and medium-sized display driver IC business is expected to decline by single digits from the last quarter. Q3 automotive driver IC sales, including TDDI and traditional DDIC, are set to decline slightly quarter-over-quarter as customers adopt a cautious stance, with delayed orders amid ongoing tariff negotiations. Despite near-term headwinds, global adoption of automotive TDDI continues to expand, fueled by growing demand for intuitive, interactive, and cost-effective touch features in modern vehicles. Himax remains the leader in this market with cumulative shipments already exceeding 100 million units, representing a market share well above 50%, far outpacing most of our competitors.

轉向中小尺寸顯示器驅動IC業務。第三季度，中小尺寸顯示驅動IC業務預計將較上一季下滑。由於客戶採取謹慎態度，且在正在進行的關稅談判中訂單延遲，包括 TDDI 和傳統 DDIC 在內的第三季汽車驅動 IC 銷售額預計將比上一季略有下降。儘管近期面臨阻力，但全球汽車 TDDI 的採用仍在繼續擴大，這得益於現代汽車對直覺、互動和經濟高效的觸控功能的需求不斷增長。奇景電視持續維持市場領先地位，累計出貨量已突破1億台，市佔率遠超50%，遠超過多數競爭對手。

To date, we have secured around 5 design-in projects across a wide range of global automotive brands and Tier 1s, spanning entry-level to high-end vehicle models. Supported by a continuous flow of new project pipelines and widespread design wins, we are well-positioned to maintain our growth momentum and reinforce our leadership in the market. While traditional automotive DDIC sales declined in Q3 due to partial replacement by TDDI, the transition remains gradual as many automotive displays, such as dashboard, SUVs, and rear and side view mirrors, do not require touch functionality and typically have long product life cycles.

迄今為止，我們已獲得全球眾多汽車品牌和一級供應商的約 5 個設計項目，涵蓋入門級到高端車型。在源源不絕的新項目和廣泛的設計訂單的支持下，我們有能力保持成長勢頭並鞏固我們在市場上的領導地位。雖然傳統汽車 DDIC 的銷量在第三季度因 TDDI 的部分替代而下降，但這種轉變仍然是漸進的，因為許多汽車顯示器（如儀表板、SUV 以及後視鏡和側視鏡）不需要觸控功能，並且通常具有較長的產品生命週期。

Himax holds a solid 40% market share in the traditional DDIC and remains the go-to supplier for both legacy and next-generation automotive display applications. Himax also continues to lead in automotive display IC innovation by pioneering solutions across a wide range of panel types, addressing diverse design needs and cost considerations.

Himax 在傳統 DDIC 中佔有 40% 的穩固市場份額，並且仍然是傳統和下一代汽車顯示器應用的首選供應商。Himax 還透過在多種面板類型上開拓解決方案來滿足不同的設計需求和成本考慮，繼續引領汽車顯示器 IC 創新。

For ultra-large displays, we offer LDI, where we led the industry by introducing the technology and commencing its production in Q3 2023. Additional LDDI projects with multiple leading global brands are on track for mass production in the third quarter, with more programs expected to follow as we move into 2026. For smaller displays with tight form factor and budget requirements, we provide single-chip designs that combine TDDI and novel Tcon. This enables advanced local dimming in small-sized displays, reduces overall system costs, and improves power efficiency. Meanwhile, Himax is recognized for its dominance in lower TC technology, which I will elaborate on in a few minutes.

對於超大顯示器，我們提供 LDI，我們透過引入該技術並於 2023 年第三季開始生產，引領了產業發展。與多個全球領先品牌合作的其他 LDDI 專案預計在第三季度實現量產，預計到 2026 年還會有更多專案追蹤。對於尺寸和預算要求嚴格的小型顯示器，我們提供結合了 TDDI 和新型 Tcon 的單晶片設計。這使得小尺寸顯示器能夠實現先進的局部調光，降低整體系統成本，並提高電源效率。同時，奇景光電因其在低 TC 技術方面的主導地位而受到認可，我將在幾分鐘內詳細說明這一點。

We continue to lead the global automotive display market with a 40% share in DDIC, over 50% in TDDI, and even higher market share in lower Tcon. Moving to smartphone and tablet IC sales. We expect revenues for both segments to decline quarter-over-quarter as customers pull forward purchases in prior quarters. Next, an update on our OLED business. In the automotive OLED market, we have established strategic partnerships with leading panel makers across Korea, China, and Japan.

我們持續引領全球汽車顯示器市場，在DDIC市場佔有40%的份額，在TDDI市場佔有50%以上的份額，在較低Tcon市場佔有更高的份額。轉向智慧型手機和平板電腦 IC 銷售。由於客戶在前幾個季度提前購買，我們預計這兩個部門的收入將環比下降。接下來，介紹一下我們的 OLED 業務的最新情況。在汽車OLED市場，我們與韓國、中國和日本領先的面板製造商建立了戰略合作夥伴關係。

As OLED technology gains broader adoption for premium vehicles, Himax is well-positioned to become the partner of choice, leveraging our nearly 2 decades of experience and strong foothold in the automotive display market. Capitalizing on our first-mover advantage, we offer a comprehensive suite of solutions, including DDIC, Tcon, and on-cell touch controllers. Our automotive OLED driver and Tcon solutions began production for EVs of leading car makers a few years ago. We now also offer standard ICs ready for broader deployment. In parallel, we are collaborating with leading panel makers of custom ASIC development.

隨著 OLED 技術在高階汽車中的應用越來越廣泛，奇景光電憑藉近 20 年的經驗和在汽車顯示器市場的穩固地位，完全有能力成為首選合作夥伴。利用我們的先發優勢，我們提供全面的解決方案，包括 DDIC、Tcon 和 on-cell 觸控控制器。幾年前，我們的汽車 OLED 驅動器和 Tcon 解決方案開始為領先汽車製造商的電動車生產。我們現在也提供可供更廣泛部署的標準 IC。同時，我們正在與領先的面板製造商合作開發客製化 ASIC。

In addition, our advanced OLED on-cell touch control technology features an industry-leading signal-to-noise ratio, ensuring reliable performance even in challenging conditions such as glass or [WE-I ASIC chip]. The OLED on-cell touch ICs entered mass production in 2024 and are being increasingly adopted by major global automotive brands for the upcoming car models. Looking ahead, we expect OLED panel adoption in automotive displays to accelerate starting in 2027. Himax is well-positioned to be a key beneficiary, unlocking a new growth engine that further strengthens our leadership in the automotive display market. We have also expanded our comprehensive OLED portfolio into the tablet and notebook markets, covering DDIC, Tcon, and touch controllers through partnerships with leading OLED panel makers in Korea and China.

此外，我們先進的 OLED on-cell 觸控技術具有業界領先的信噪比，即使在玻璃或【WE-I ASIC晶片】OLED on-cell 觸控 IC 於 2024 年投入量產，並越來越多地被全球各大汽車品牌用於即將推出的車型。展望未來，我們預計從 2027 年開始 OLED 面板在汽車顯示器中的應用將加速發展。奇景光電 (Himax) 處於有利地位，將成為主要受益者，釋放新的成長引擎，進一步加強我們在汽車顯示器市場的領導地位。我們也透過與韓國和中國領先的 OLED 面板製造商合作，將我們全面的 OLED 產品組合擴展到平板電腦和筆記型電腦市場，涵蓋 DDIC、Tcon 和觸控控制器。

Several new projects are slated to enter mass production with top-tier brands later this year. Meanwhile, we are developing new technologies for value-added features such as active stylus, ultra, based on design and gaming models, to further differentiate our products and reinforce our competitive edge. In the smartphone OLED market, we are making solid progress in our collaborations with customers in Korea and China, with mass production on track starting at the end of this year. I would like to now turn to our non-driver IC business update, where we expect the third quarter revenue to decline double digit sequentially. First, for an update on our Tcon business.

多個新項目計劃於今年稍後與頂級品牌合作進入量產階段。同時，我們正在開發基於設計和遊戲模型的增值功能新技術，如有源手寫筆、超級等，以進一步區分我們的產品並增強我們的競爭優勢。在智慧型手機OLED市場，我們與韓國和中國客戶的合作正在取得紮實進展，並將於今年底開始量產。現在我想談談我們的非驅動 IC 業務更新，我們預計第三季營收將環比下降兩位數。首先，介紹一下我們的 Tcon 業務的最新情況。

We anticipate Q3 Tcon sales to decrease by double digits sequentially, but increase by single digits year-over-year. The CO decline is primarily a result of customers putting forward inventory purchases of Tcon for monitor, notebook, and TV products during the prior quarters, against the backdrop of Chinese government subsidies boosting domestic consumption. In automotive, our Q3 sales are set to increase by single digits sequentially, fueled by a strong pipeline of over 200 design win projects gradually entering mass production. We believe our automotive Tcon business is well-positioned for sustained growth in the years ahead. We continue to lead the industry in the innovation of automotive Tcon technology.

我們預計第三季 Tcon 銷售額將季減兩位數，但年增個位數。二氧化碳排放量下降的主要原因是，在中國政府補貼刺激國內消費的背景下，客戶在前幾個季度增加了顯示器、筆記型電腦和電視產品的 Tcon 庫存採購。在汽車領域，我們的第三季銷售額預計將環比成長個位數，這得益於 200 多個設計中標項目逐漸進入量產階段。我們相信，我們的汽車 Tcon 業務在未來幾年將持續成長。我們在汽車Tcon技術的創新上持續引領業界。

Our new generation low Tcon offers advanced features such as edge and high dynamic range, ideal for customers looking to upgrade their displays for better panel performance. Switching gears to the WiseEye ultra-low power AI solution. The cutting-edge endpoint AI integration feature industry-leading ultralow power AI processor, always image sensor, and CM-based AI algorithm at its core. Amid the rapidly evolving AI landscape, WiseEye AI stands out by delivering on-device AI inferencing with industry-leading ultra-low power, nearly a few milliwatts, alongside a contact form factor and industrial-grade security, enabling AI functionality in battery-powered endpoint devices. With always-intelligent low-power perceptual input, WiseEye serves as an ideal front end for (inaudible) supporting multimodal AI that goes beyond vision, language, audio, and intent to include rich contextual awareness such as motion, proximity, and behavior for smarter, more responsive user experiences.

我們的新一代低 Tcon 提供邊緣和高動態範圍等先進功能，非常適合希望升級顯示器以獲得更好面板性能的客戶。轉向 WiseEye 超低功耗 AI 解決方案。尖端端點 AI 整合以業界領先的超低功耗 AI 處理器、始終影像感測器和基於 CM 的 AI 演算法為核心。在快速發展的人工智慧領域中，WiseEye AI 脫穎而出，提供業界領先的超低功耗（近幾毫瓦）的設備內人工智慧推理，同時具有接觸式外形和工業級安全性，可在電池供電的端點設備中實現人工智慧功能。WiseEye 具有始終智慧的低功耗感知輸入，是支援多模式 AI 的理想前端，它超越了視覺、語言、音訊和意圖，包括豐富的情境感知，如運動、接近度和行為，從而實現更聰明、響應更快的用戶體驗。

Wi-Fi adoption is accelerating across dilications, including notebooks, tablets, surveillance systems, access control, smart home and more recently and more recently, smart glasses and many others. (inaudible) We are pleased to report that it has also adopted Wise for its AI PC. Wise is now being integrated by other leading notebook vendors, with some entering production later this year and expanding further into 2026. WiseEye's advanced local inferencing capability goes beyond human presence detection, supporting a broad set of intelligent features, including proximity detection and pressure, and presence awareness, alert posture reminders, and automatic cursor to the display the user is viewing. In the surveillance domain, WiseEye AI enhances security systems by combining 2 key capabilities, namely accurate human option distinction and event-driven activation.

Wi-Fi 的普及正在各個領域加速進行，包括筆記型電腦、平板電腦、監控系統、門禁系統、智慧家庭以及最近的智慧眼鏡等。（聽不清楚）我們很高興地宣布，該公司也已將 Wise 技術應用於其 AI PC。目前，其他領先的筆記型電腦供應商也正在整合 Wise 技術，其中一些廠商已於今年稍後投入生產，並計劃在 2026 年進一步擴展其應用範圍。WiseEye 先進的本地推理能力超越了人類存在檢測，支援廣泛的智慧功能，包括接近檢測和壓力、存在感知、警報姿勢提醒以及自動遊標到用戶正在查看的顯示器。在監控領域，WiseEye AI 透過結合兩個關鍵功能（即準確的人類選項區分和事件驅動的活化）來增強安全系統。

This significantly reduces false triggers, conserving power and minimizing system overhead. Outperforming widely used conventional PR sensors that often misidentify motion and unnecessarily activate the high-power-consuming processor and/or image sensor. In addition to the China market where shipments to leading smart door lock vendors are already underway, we are now partnering with leading door lock vendors worldwide to introduce advanced AI features such as biometric access, par recognition, and anti-pinch protection with several designs slated for mass production starting in 2026.

這顯著減少了誤觸發，節省了電力並最大限度地降低了系統開銷。優於廣泛使用的傳統 PR 感測器，這些感測器經常錯誤識別運動並不必要地啟動高功耗的處理器和/或影像感測器。除了中國市場已開始向領先的智慧門鎖供應商出貨外，我們現在還與全球領先的門鎖供應商合作，推出先進的人工智慧功能，如生物識別、識別和防夾保護，其中幾種設計計劃於 2026 年開始量產。

Recently, we achieved another competing demonstration of our ultra-low-power AI motion sensing through our collaboration with (inaudible), marked by the launch of the AI built over 6 axis gyroscope, Bond AI empowers wearables with advanced on-demand capabilities such as motion analysis, posture recognition and behavior interpretation, all delivered with low latency, exceptional energy efficiency and a privacy-first design. With WiseEye AI, the Bond AI platform can also interface with ALS, further expanding its ability to perceive, understand, and interact with complex real-world scenarios.

最近，我們透過與 (inaudible) 的合作，實現了超低功耗 AI 運動感應的另一項競爭性展示，以基於 6 軸陀螺儀構建的 AI 為標誌，Bond AI 為可穿戴設備提供了先進的按需功能，例如運動分析、姿勢識別和行為解釋，所有這些都具有低延遲、卓越的能源效率和隱私優先的設計。借助 WiseEye AI，Bond AI 平台還可以與 ALS 交互，進一步擴展其感知、理解和與複雜的現實場景交互的能力。

This enables a wide range of real-world applications, including smart health care, sports, education, and interactive learning. Next, for an upgrade on our WiseEye module business, which integrates Himax's ultra-low-power image sensor AI processor and pretrained no-code/low-code AI algorithm, enabling easy deployment across a broad spectrum of applications. Himax's biometric authentication portfolio complies with Europe's General Data Protection Regulation or GDPR, one of the world's strictest data privacy laws, ensuring strong privacy protection and enabling adoption in highly regulated markets.

這使得廣泛的現實世界應用成為可能，包括智慧醫療、體育、教育和互動學習。接下來，我們將升級我們的WiseEye模組業務，該業務整合了Himax的超低功耗影像感測器AI處理器和預先訓練的無程式碼/低程式碼AI演算法，可輕鬆部署到廣泛的應用中。Himax 的生物辨識認證產品組合符合歐洲的《一般資料保護規範》（GDPR），這是世界上最嚴格的資料隱私法之一，可確保強而有力的隱私保護並使其能夠在高度監管的市場中採用。

Our panel module has attracted strong interest across multiple industries, rapidly securing design wins in areas such as smart access, workforce management, smart locks, and more, with some projects scheduled to enter mass production in 2026. To address the growing demand for more flexible access control, we have upgraded the WiFi panel suite with multimodal authentication capabilities, combining panel and facial recognition to enable multilayer biometric verification, delivering stronger security and greater user convenience.

我們的面板模組引起了多個行業的強烈興趣，迅速在智慧門禁、勞動力管理、智慧鎖等領域獲得設計勝利，部分專案計劃於 2026 年投入量產。為了滿足日益增長的更靈活存取控制需求，我們升級了 WiFi 面板套件，使其具有多模式身份驗證功能，結合面板和臉部識別，實現多層生物識別驗證，提供更強的安全性和更大的用戶便利性。

In the field of AI sensing for AR and AI glasses, we are excited to see WiseEye AI's growing adoption and active engineering engagements across major tech giants, traditional OEMs, brands, and start-ups. Smart glasses makers are leveraging WiseEye to enable instant responsiveness for a wide range of AI applications while ensuring extended battery life. More specifically, WiseEye empowers both outward and inward vision sensing capabilities. For out vision sensing enables environmental awareness and real-time analysis, such as object recognition, navigation assistance, and environmental mapping, significantly enhancing AI interactivity for consuming just a few million watts of power concurrently for in vision sensing. WiseEye AI movements, gas direction, people, and to support intuitive user interactions.

在 AR 和 AI 眼鏡的 AI 感知領域，我們很高興看到 WiseEye AI 在各大科技巨頭、傳統 OEM、品牌和新創公司的應用日益廣泛，並積極參與工程設計。智慧眼鏡製造商正在利用 WiseEye 為各種人工智慧應用提供即時回應，同時確保延長電池壽命。更具體地說，WiseEye 同時具備向外和向內的視覺感知能力。對於外部視覺感知，可以實現環境感知和即時分析，例如物體識別、導航輔助和環境映射，從而顯著增強人工智慧的互動性，而內部視覺感知僅消耗數百萬瓦的功率。WiseEye AI 動作、氣體方向、人物以及支援直覺的使用者互動。

Multiple projects are underway for customers' next-generation AI and AI glasses, further validating WiseEye as the preferred option for a powerful AI solution for emerging wearable education requiring real-time user environment interaction. Moving on to our latest advancements in LCOS micro display technology. Following the debut of our proprietary dual-edge LCOS microdisplay at Display Week this May.

目前，針對客戶的下一代人工智慧和人工智慧眼鏡的多個項目正在進行中，進一步證明 WiseEye 是需要即時用戶環境互動的新興可穿戴教育的強大人工智慧解決方案的首選。繼續介紹我們在 LCOS 微顯示技術的最新進展。繼今年 5 月我們的專有雙面 LCOS 微顯示器在顯示週上首次亮相之後。

Customers across the board are eagerly anticipating samples of our newly introduced LCOS solution targeted for release in September for their new C AR glasses projects. This industry-leading solution integrates both the illumination optics and LCOS panel into an exceptionally compact form factor as small as 0.09 cc and weighs just 0.2 grams, while achieving up to 350,000 nits of brightness and wide movement output at just 250minwatt maximum power consumption.

所有客戶都熱切期待我們新推出的 LCOS 解決方案樣品，該解決方案計劃於 9 月發布，用於他們的新 C AR 眼鏡專案。這個業界領先的解決方案將照明光學元件和 LCOS 面板整合到一個極其緊湊的外形中，體積小至 0.09 cc，重量僅為 0.2 克，同時在最大功耗僅為 250 毫瓦的情況下實現高達 350,000 尼特的亮度和寬運動輸出。

The Luminous breakthrough ensures excellent high-level visibility even in bright conditions, while the offshore compact form factor makes sleek everyday AI glasses possible. The collaborations with leading global tech companies and specialized smart glasses vendors continue to progress steadily. We'll provide more updates as they come about. That concludes my report for this quarter. Thank you for your interest in Himax.

Luminous 的突破確保了即使在明亮的條件下也能實現出色的高水平可見度，而離岸緊湊的外形使得時尚的日常 AI 眼鏡成為可能。與全球領先科技公司和專業智慧眼鏡供應商的合作繼續穩步推進。一旦有更多更新，我們將及時提供。這就是我本季的報告。感謝您對 Himax 的關注。

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

感謝您參加今天的電話會議，現在我們準備好回答您的問題了。

(Operator Instructions)

（操作員指示）

I actually have a couple of questions related to our CPO status. The questions are about some updates from last quarter, our mass production timetable, next-generation progress, sales contribution, et cetera. So I think I will combine the questions and give the provided answer together. So in short, the project is on track. And I mean, we really don't have a whole lot of progress or updates.

我實際上有幾個與我們的 CPO 狀態相關的問題。問題涉及上個季度的一些更新、我們的量產時間表、下一代進度、銷售貢獻等。所以我想我會把這些問題結合起來並一起給出提供的答案。簡而言之，該項目正在按計劃進行。我的意思是，我們確實沒有取得太多進展或更新。

So together with our partner, we are focused on getting the first-generation product validated. So 2025, this year will be a year for engineering validation with only sample shipments for us. So some of the shipments certainly, in terms of revenue contribution, will be rather limited. And in all likelihood, mass production will commence next year. But at this point, we will not comment on exactly when in 2026.

因此，我們與合作夥伴一起致力於驗證第一代產品。因此，2025 年將是工程驗證的一年，我們只會發送樣品。因此，從收入貢獻的角度來看，部分出貨量肯定會相當有限。而且很有可能明年就開始大規模生產。但目前我們不會評論2026年的具體時間。

So as far as the new generation is concerned, we are actually developing more than one generation of future products. I mean, obviously, I cannot give details of the future generation design. What I can say is that these products, when successful, will represent much higher revenue for us on a per unit basis or per FAU basis because our new design will cover a much wider scope of optics inside the FAU, while at the same time, enable higher transmission bandwidth and lower the overall module cost for our customers. I've actually commented on the revenue potential in my last 2 earnings calls. So I think I will just quickly go through that again.

因此就新一代而言，我們實際上正在開發不只一代的未來產品。我的意思是，顯然我無法提供未來世代設計的細節。我可以說的是，這些產品一旦成功，將為我們帶來每單位或每 FAU 更高的收入，因為我們的新設計將涵蓋 FAU 內更廣泛的光學範圍，同時為我們的客戶提供更高的傳輸頻寬並降低整體模組成本。事實上，我在最近的兩次財報電話會議上都對收入潛力進行了評論。所以我想我會快速再過一次。

So again, next year, 2026, is likely to be the first year of mass production. But it's still too early to give an early indication for the year because, as I just said, exactly when MP will commence is yet to be determined by our customers. I said in the Q&A of last earnings call that our annualized CPO revenue could reach over $100 million in the so-called early stage of mass production. And I'm still holding the same view. So by early stage, I'm thinking the early stage of MP when only maybe most of the AI switches in the data center are equipped with CPO.

所以，明年，也就是2026年，很可能是量產的第一年。但現在對今年的情況做出初步預測還為時過早，因為正如我剛才所說，MP 的具體開始時間尚未由我們的客戶確定。我在上次財報電話會議的問答中說過，在所謂的量產初期，我們的年化CPO收入可以達到1億美元以上。我依然持有同樣的觀點。因此，在早期階段，我認為在 MP 的早期階段，可能只有資料中心中的大多數 AI 交換器配備了 CPO。

And actually, as the technology is more proven, CPO will be adopted by more end customers and penetrate further to also cover XPUs for AI data centers. Now, if you look further ahead, I believe automotive and humanoid robots are 2 likely new major markets where advanced high-bandwidth AI is also needed. And because our optics is a critical element of CPO, we are seeing this business as a major game changer for Himax. So it's something we will certainly commit to for many, many years. So regarding the question and when this will start ramping up, to me, this is not really a question of whether or even when it will happen, but rather how fast and how much the CPO technology will penetrate.

實際上，隨著技術進一步驗證，CPO 將被更多終端客戶採用，並進一步滲透到 AI 資料中心的 XPU 中。現在，如果展望未來，我相信汽車和人形機器人可能是兩個新的、同樣需要先進高頻寬人工智慧的主要市場。由於我們的光學元件是 CPO 的關鍵要素，我們認為這項業務對 Himax 來說是一個重大的改變。因此，我們肯定會在未來很多年致力於此。因此，關於何時會開始加速這個問題，對我來說，這實際上不是一個是否會發生或何時發生的問題，而是 CPO 技術滲透的速度和程度。

And we believe with all the obvious benefits like raising transmission bandwidth and substantially reducing power consumption of data transmission, and all at pretty low cost compared to those complex AI systems, the CPO technology has the potential to ramp quickly with high market penetration. But ultimately, this is a decision again to be made by our end customers. So what we can do is get ourselves prepared for any ramping plan, and equally important, aggressively push the boundaries of the technology. And I guess lastly, I think it's important to point out that the progress of collaboration with our customers is not affected and not deterred by the prevailing macro uncertainty or the tariff situation. So our customer/partner are as determined and focused as ever to push this odd forward as planned.

我們相信，由於CPO技術具有許多明顯優勢，例如提高傳輸頻寬、大幅降低資料傳輸功耗，而且與那些複雜的AI系統相比成本相當低，因此CPO技術有潛力迅速發展並實現較高的市場滲透率。但最終，這又是由我們的最終客戶做出的決定。因此，我們能做的就是為任何擴張計劃做好準備，同樣重要的是，積極突破技術的界限。最後，我認為有必要指出的是，我們與客戶的合作進展不會受到當前宏觀不確定性或關稅狀況的影響或阻礙。因此，我們的客戶/合作夥伴一如既往地堅定並專注於按計劃推進這一奇怪的事情。

So again, that's my answer to a few questions related to the CPO. There's actually another question about the number of planned CPO product generations and whether they are currently in preparation for validation. The validation is now being focused on the current generation only with the next generation going through design collaboration with the design stage. And the number of CPO product generations, I'm not sure exactly what this means. Actually, I can tell you there's a longer-term term rather fundamental and important advancement of CPO technology that we are working on, which, if successful, could cover a few generations of products.

再次重申，這就是我對一些與 CPO 相關的問題的回答。實際上還有另一個問題，關於計劃的 CPO 產品代數以及它們目前是否正在準備驗證。目前的驗證僅集中在當前世代，下一代將透過設計協作進行設計階段。而 CPO 產品代數，我不確定這到底代表什麼。實際上，我可以告訴你，我們正在研究 CPO 技術的長期、相當基礎和重要的進步，如果成功，它可以涵蓋幾代產品。

It's if it's successful, it's going to be a major breakthrough for what we are doing right now. But I mean, obviously, I'm not allowed to disclose too much. So I guess there's this current generation, which is, I think, validation, yield improvement, and so at this stage, we are geared up for mass production next year. And there's the next generation with specs coming from the customers' close collaboration with us. And for future generations, further ahead technology developments that could fundamentally improve the cost and efficiency of CPO, and that can cover several generations to come, if successful.

如果成功的話，這將是我們目前正在做的事情的重大突破。但我的意思是，顯然我不允許透露太多。所以我想這就是當前這一代，我認為，這是驗證，產量提高，所以在這個階段，我們準備好明年進行大規模生產。下一代產品的規格來自客戶與我們密切合作的結果。對於未來幾代人來說，更進一步的技術發展可以從根本上改善 CPO 的成本和效率，如果成功的話，可以涵蓋未來幾代人。

Why did Himax lose money in Q3? Based on our guidance, we are projecting to lose $0.02 to $0.04 a share in Q3. And as I just mentioned in my prepared remarks, that is because of our pretty peculiar way of expensing our employee bonuses. And we have been doing that for almost 20 years ago, ever since we got listed in 2026. And so I'm sure that those analysts or investors following us are already familiar with this.

奇景光電第三季為何虧損？根據我們的指導，我們預計第三季每股虧損 0.02 至 0.04 美元。正如我剛才在準備好的演講中提到的那樣，這是因為我們支付員工獎金的方式非常特殊。自 2026 年上市以來，我們已經這樣做了近 20 年。因此我相信關注我們的分析師或投資者已經熟悉這一點。

So in short, what happens is our employee bonus or expenses every year will reach a peak in Q3 and with much smaller amount during Q1, 2 and 4, and it has been a pattern for 20 years also because of our approach of issuing employee bonuses, whereby we basically announced employee bonus every year at the end of September or 30th of September. And we are just strictly following accounting rules. And I wish, based on our accounting practice, we could more our expenses evenly distributed across the 4 seasons, but we are not allowed to. So if you take away the employee bonus, actually, we can actually turn a small profit during Q3, and we are projecting positive cash flow during Q3. But that's just the way we do our accounting.

簡而言之，每年我們的員工獎金或支出將在第三季度達到峰值，而在第一、第二和第四季度期間的數額會小得多，這也是20年來的一種模式，因為我們發放員工獎金的方式，我們基本上在每年的 9 月底或 9 月 30 日宣布員工獎金。我們只是嚴格遵守會計規則。我希望，根據我們的會計慣例，我們可以將我們的開支更均勻地分配到四個季節，但我們不被允許這樣做。因此，如果去掉員工獎金，實際上，我們可以在第三季度獲得小額利潤，並且我們預計第三季的現金流為正。但這只是我們進行會計的方式。

But I mean, naturally, we are doing well in Q3 overall. As I just mentioned, the automotive, nonautomotive all sectors, limited visibility and tariffs; I'm not going to repeat that, but there's a particular reason for our Q3 projected loss. I guess there is no further question at this on my list. So as a final note, Karen, our Head of IR, will maintain investor marketing activities and continue to attend investor conferences, and will announce the details as they come about.

但我的意思是，自然而然，我們在第三季整體表現良好。正如我剛才提到的，汽車、非汽車所有行業的可見性和關稅有限；我不想重複這一點，但我們第三季預計虧損是有特殊原因的。我想我的清單上沒有其他與此相關的問題了。最後要說的是，我們的投資者關係主管 Karen 將繼續進行投資者行銷活動並繼續參加投資者會議，並在具體細節公佈時公佈。

Thank you, Jordan. And ladies and gentlemen, this concludes second quarter of 2025 earnings conference. You may now disconnect.

謝謝你，喬丹。女士們、先生們，2025 年第二季財報會議到此結束。您現在可以斷開連線。