奇景光電 (HIMX) 2025 Q3 法說會逐字稿

Hello, ladies and gentlemen. Welcome to the Himax Technologies Inc. third-quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session (technical difficulty) will follow at that time. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Miss. Karen Tiao, Head of IR/PR at Himax. Ms. Tiao, please go ahead.

各位女士、先生們，大家好。歡迎參加海邁科技有限公司2025年第三季財報電話會議。目前，所有參與者均處於唯讀模式。稍後我們將進行問答環節（如有技術問題，敬請期待）。再次提醒，本次電話會議正在錄音。現在我想把會議交給小姐。Karen Tiao，Himax 投資者關係/公共關係主管。蒂奧女士，請繼續。

Welcome everyone to the Himax third-quarter 2025 earnings call. My name is Karen Tiao, Head of IR/PR at Himax. Joining me today are (technical difficulty) Officer. After the company’s prepared comments, we have allocated time for questions in a Q&A session. If you have not yet received a copy of today’s results release, please email 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.

歡迎大家參加Himax 2025年第三季財報電話會議。我是Karen Tiao，Himax的投資人關係/公共關係主管。今天和我一起的還有（技術故障）警官。在公司發表完準備好的評論後，我們安排了問答環節，供大家提問。如果您尚未收到今天發布的業績公告，請發送電子郵件至 hx_ir@himax.com.tw 或 HIMX@mzgroup.us，或造訪財經入口網站查看新聞稿，或從 Himax 的網站 www.himax.com.tw 下載副本。

Before we begin the formal remarks, I’d like to remind everyone that some of the statements in this conference call, including statements regarding expected future financial results and industry growth are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this conference call.

在正式發言之前，我想提醒大家，本次電話會議中的一些陳述，包括有關預期未來財務業績和行業增長的陳述，均為前瞻性陳述，涉及諸多風險和不確定性，可能導致實際事件或結果與本次電話會議中描述的內容存在重大差異。

A list of risk factors can be found in the company's SEC filings, Form 20-F for the year ended December 31, 2024 in the section entitled "Risk Factors", as may be amended. 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.

風險因素清單可在本公司提交給美國證券交易委員會的截至 2024 年 12 月 31 日止年度的 20-F 表格中「風險因素」部分找到，該部分可能會進行修訂。除本公司 2024 年全年財務資料（已在本公司 2025 年 4 月 2 日提交給美國證券交易委員會的 20-F 表格中提供）外，本次電話會議中包含的財務資訊未經審計，並根據國際財務報告準則 (IFRS) 編制。

Such financial information is generated internally and has not been subjected to the same review and scrutiny, including internal auditing procedures and external audits by an independent auditor, to which we subject our annual consolidated financial statements, and may vary materially from the audited consolidated financial information for the same period. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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程序（包括內部審計程序和獨立審計師的外部審計），因此可能與同一時期的經審計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 the Himax consolidated financial performance for the third-quarter 2025, followed by our fourth-quarter outlook. Jordan will then give an update on the status of our business, after which we will take questions. You can submit your questions online through the webcast or by phone. We will review our financials on an IFRS basis.

在今天的電話會議上，我將首先回顧 Himax 2025 年第三季的綜合財務業績，然後展望第四季。接下來，Jordan 將介紹我們公司的最新情況，之後我們將回答問題。您可以透過網路直播或電話在線提交您的問題。我們將按照國際財務報告準則（IFRS）審查我們的財務狀況。

During the third-quarter, US tariff measures continued to disrupt global trade dynamics, adding to macroeconomic and demand uncertainty. Despite these headwinds, we are pleased to report that our third-quarter revenues and profit both significantly exceeded the guidance range announced on August 7, 2025, while gross margin came in within guidance.

第三季度，美國關稅措施持續擾亂全球貿易動態，加劇了宏觀經濟和需求的不確定性。儘管面臨這些不利因素，我們欣喜地報告，我們第三季度的收入和利潤均大幅超過了 2025 年 8 月 7 日公佈的預期範圍，而毛利率也達到了預期水平。

Third-quarter revenues (technical difficulty) 7.3%, which significantly outperformed our guidance range of a 12.0% to 17.0% decline, primarily driven by better than-expected sales from automotive IC and Tcon product lines. Gross margin was 30.2%, in line with our guidance (technical difficulty) . Q3 profit per diluted ADS was 0.6 cents, substantially exceeding the guidance range of a loss of 2.0 to 4.0 cents, attributable to stronger-than-guided revenues.

第三季營收（技術性問題）成長 7.3%，遠超我們先前預測的下降 12.0% 至 17.0% 的範圍，主要得益於汽車 IC 和 Tcon 產品線的銷售額好於預期。毛利率為30.2%，與我們的預期一致。（技術難題）。第三季每股攤薄收益為 0.6 美分，大幅超過先前預期的虧損 2.0 至 4.0 美分，主要歸功於高於預期的收入。

Revenue from large display drivers came in at $19.0 million, representing a decline of 23.6% from the (technical difficulty). All three product lines within the large panel driver IC segment declined, primarily due to the absence of the traditional seasonal shopping momentum amid a volatile macroeconomic environment, as well as customers pulling forward purchases in prior quarters. Sales of large panel driver ICs accounted for 9.5% of total revenues for the quarter, compared (technical difficulty) last quarter and 13.8% a year ago.

大型顯示器驅動業務的營收為1,900萬美元，較上年同期下降了23.6%。（技術難題）大型面板驅動 IC 細分市場的所有三條產品線均出現下滑，主要原因是宏觀經濟環境動盪，缺乏傳統的季節性購物勢頭，以及消費者提前購買了前幾季的產品。大型面板驅動積體電路的銷售額佔本季總收入的 9.5%，而上一季（因技術原因）和去年同期為 13.8%。

Revenue from the small and medium-sized display driver segment totaled $141.0 million, reflecting a slight decline of 2.4%. Q3 automotive driver sales, including both traditional DDIC and TDDI, increased single (technical difficulty) our guidance of a slight sequential decline, indicating resilient underlying demand despite global softness in automotive sales. The sequential growth was mainly driven by replenishment in both TDDI and DDIC products, with customers adhering to a make-to-order model and keeping inventories lean in view of an uncertain demand outlook.

中小尺寸顯示驅動器細分市場的收入總計 1.41 億美元，略微下降了 2.4%。第三季汽車駕駛銷售（包括傳統 DDIC 和 TDDI）較我們先前預測的略微環比下降有所增長（技術困難），顯示儘管全球汽車銷量疲軟，但潛在需求依然強勁。TDDI 和 DDIC 產品的補貨推動了環比增長，客戶堅持按訂單生產模式，鑑於需求前景不明朗，保持庫存精簡。

(technical difficulty) comprising DDIC, TDDI, Tcon, and OLED IC sales, remained the largest revenue contributor in the third-quarter, representing over 50% of total revenues. Meanwhile, revenues for both smartphone and tablet IC segments declined quarter-over-quarter, as customers pulled forward purchases in prior quarters. (technical difficulty) driver IC segment accounted for 70.8% of total sales for the quarter, compared to 67.3% in the previous quarter and 69.9% a year ago.

（技術難題）包括 DDIC、TDDI、Tcon 和 OLED IC 的銷售，仍然是第三季最大的收入貢獻者，佔總收入的 50% 以上。同時，由於客戶提前購買了前幾個季度的產品，智慧型手機和平板電腦晶片業務的收入均較上季下降。 （技術故障）驅動晶片業務佔本季總銷售額的70.8%，上一季為67.3%，去年同期為69.9%。

Q3 non-driver sales reached $39.2 million, a 13.7% decrease from the previous quarter but outperforming our guidance range (technical difficulty). Himax continues to hold an undisputed leadership position with a dominant market share in automotive Tcon. Tcon business accounted for around 12% of total sales, with notable contributions from automotive Tcon. Non-driver products accounted for 19.7% (technical difficulty) compared to 21.1% in the previous quarter and 16.3% a year ago.

第三季非駕駛銷售額達到3,920萬美元，較上一季下降13.7%，但仍高於我們的預期範圍。（技術難題）Himax 在汽車 Tcon 領域繼續保持著無可爭議的領導地位，擁有絕對的市場份額。Tcon 業務約佔總銷售額的 12%，其中汽車 Tcon 的貢獻尤為顯著。非驅動產品佔 19.7%（技術難度），上一季為 21.1%，一年前為 16.3%。

Third-quarter operating expenses were $60.7 million, an increase of 24.2% from the previous quarter and roughly flat compared to the same period last year. The sequential increase was mainly attributed to the annual (technical difficulty) which we award employees at the end of September each year, typically resulting in much higher Q3 employee compensation expense compared to other quarters of the year.

第三季營運支出為 6,070 萬美元，較上一季成長 24.2%，與去年同期基本持平。環比成長主要歸因於我們每年 9 月底向員工發放的年度（技術困難）獎金，這通常會導致第三季員工薪資支出比其他季度高得多。

Increased tape-out expenses, salary expenses as well as the appreciation of the NT dollar against the US dollar in Q3 were also factors behind the sequential increase. Our (technical difficulty) grant for 2025 was $7.7 million, slightly higher than the guidance of $7.5 million, as the bonus amount, determined based on the expected full-year profit, was revised upward following a much-improved Q3 financial performance.

第三季印鈔成本增加、薪資支出增加以及新台幣對美元升值也是季增的因素。我們 2025 年的（技術困難）撥款為 770 萬美元，略高於先前預期的 750 萬美元，因為根據全年預期利潤確定的獎金數額在第三季度財務業績大幅改善後進行了上調。

Of the $7.7 million, $7.5 million was immediately (technical difficulty) in prior years, the total bonus expense for Q3 2025 amounts to $8.1 million, significantly lower than $13.9 million recorded in Q3 2024. For reference, the annual bonuses granted for 2024 and 2023 were $12.5 million and $10.4 million respectively, of which $11.2 million and $9.7 million were vested and expensed immediately. Amid ongoing macroeconomic challenges, we continue to exercise strict budget and expense controls.

在 770 萬美元中，有 750 萬美元是由於前幾年的技術困難而立即產生的，2025 年第三季度的總獎金支出為 810 萬美元，遠低於 2024 年第三季度記錄的 1390 萬美元。作為參考，2024 年和 2023 年分別授予的年度獎金為 1250 萬美元和 1040 萬美元，其中 1120 萬美元和 970 萬美元已歸屬並立即計入費用。在宏觀經濟持續面臨挑戰的情況下，我們繼續實施嚴格的預算和支出控制。

Third-quarter operating loss was $0. (technical difficulty) , representing a negative operating margin of 0.3%, compared to 8.4% in the previous quarter and 2.6% for the same period last year. The sequential decline was primarily attributable to higher employee bonus which, as stated earlier was $8.1 million, compared to $0.8 million last quarter, coupled (technical difficulty) decrease was mainly due to reduced sales. Q3 after-tax profit was $1.1 million, or 0.6 cents per diluted ADS, compared to $16.5 million, or 9.5 cents per diluted ADS last quarter, and down from $13.0 million, or 7.4 cents in the same period last year.

第三季營業虧損為 0 美元（技術故障），營業利潤率為負 0.3%，而上一季為 8.4%，去年同期為 2.6%。環比下降主要歸因於員工獎金增加，如前所述，本季獎金為 810 萬美元，而上一季為 80 萬美元；此外，（技術困難）下降主要歸因於銷售額減少。第三季稅後利潤為 110 萬美元，即每股攤薄 ADS 0.6 美分，而上一季為 1,650 萬美元，即每股攤薄 ADS 9.5 美分，低於去年同期的 1,300 萬美元，即每股 7.4 美分。

Turning to the balance sheet, we had $278.2 million of cash, cash equivalents and other financial assets as of September 30, 2025. This compares to $206.5 million at the same time last year and $332.8 (technical difficulty) a quarter ago. The sequential decline in cash balance mainly reflected the $64.5 million dividend and $13.1 million employee bonus payout.

從資產負債表來看，截至 2025 年 9 月 30 日，我們擁有 2.782 億美元的現金、現金等價物和其他金融資產。相比之下，去年同期為 2.065 億美元，上個季度為 3.328 億美元（受技術困難影響）。現金餘額環比下降主要反映了 6,450 萬美元的股息和 1,310 萬美元的員工獎金支出。

Q3 operating cash inflow was $6.7 million, compared to an inflow of $60.5 million in the prior quarter. The sequential decrease mainly reflected (technical difficulty) payments in Q3 for inventory procured in prior quarters to support customer demand, along with employee bonus payment mentioned above. The employee bonus paid out this year included $7.3 million for the immediately vested portion of this year’s award and $5.8 million for vested awards granted over the past three years. (technical difficulty) at the end of Q3, of which $6.0 million was the current portion.

第三季經營現金流入為 670 萬美元，而上一季流入為 6,050 萬美元。第三季季減主要反映了（技術困難）支付了前幾季為滿足客戶需求而購買的庫存款項，以及上文提到的員工獎金。今年發放的員工獎金包括730萬美元的本年度立即歸屬部分獎金和580萬美元的過去三年授予的已歸屬獎金（技術問題），截至第三季度末，其中600萬美元為當期部分。

Our quarter-end inventories were $137.4 million, a slight increase from $134.6 million last quarter but lower than $192.5 million a year ago. After several quarters of inventory decline from its peak during the industry-wide supply shortage, Q3 inventory slightly increased but remained at a healthy level. As macroeconomic uncertainty limits visibility across the ecosystem, we will continue to manage our inventory conservatively.

本季末庫存為 1.374 億美元，較上季的 1.346 億美元略有增加，但低於去年同期的 1.925 億美元。在經歷了幾個季度從行業整體供應短缺期間的峰值回落後，第三季度庫存略有上升，但仍保持在健康水平。由於宏觀經濟的不確定性限制了整個生態系統的可見性，我們將繼續採取保守的庫存管理方式。

(technical difficulty) receivable at the end of September 2025 was $200.7 million, decreased from $219.0 million last quarter and down from $224.6 million a year ago. DSO was 87 days at the quarter end, as compared to 92 days last quarter and a year ago. Third-quarter capital expenditures (technical difficulty) versus $4.6 million last quarter and $2.6 million a year ago.

（技術難題）截至 2025 年 9 月底的應收帳款為 2.007 億美元，較上季的 2.19 億美元有所減少，較一年前的 2.246 億美元有所下降。本季末的應收帳款週轉天數為 87 天，而上一季及去年同期均為 92 天。第三季資本支出（技術困難）與上一季的 460 萬美元和去年同期的 260 萬美元相比。

Third-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 Tainan headquarters built for employees' children. As of September 30, 2025, Himax (technical difficulty) .5 million ADS outstanding, little changed from last quarter. On a fully diluted basis, the total number of ADS outstanding for the third-quarter was $174.4 million.

第三季資本支出主要用於積體電路設計業務的研發相關設備，以及正在興建中的台南總部附近為員工子女建造的新幼兒園。截至 2025 年 9 月 30 日，Himax（技術困難）未發行 ADS 為 50 萬股，與上一季相比變化不大。以完全稀釋後的基準計算，第三季已發行的美國存託股份總數為 1.744 億美元。

Now, turning to our fourth-quarter 2025 guidance. We expect Q4 revenues to be flat sequentially. Gross margin is expected (technical difficulty) up, depending on product mix. Q4 profit attributable to shareholders is estimated to be in the range of 2.0 to 4.0 cents per fully diluted ADS.

現在，讓我們來看看我們對 2025 年第四季的業績預期。我們預計第四季營收將與上一季持平。預計毛利率（技術難度）將有所提高，具體取決於產品組合。預計第四季歸屬於股東的利潤為每股完全稀釋後的美國存託股份 2.0 至 4.0 美分。

I will now turn the call over to Jordan to discuss our Q4 2025 outlook. Jordan, the floor is yours.

現在我將把電話交給 Jordan，讓他來討論我們 2025 年第四季的展望。喬丹，現在輪到你發言了。

Thank you, Karen. US–China tariff negotiations recently reached a preliminary framework, sending a positive signal to the market. Yet most panel customers continue to adopt a make-to-order model and maintain low inventory levels. In the automotive display IC business, (technical difficulty) demand visibility remains low as customers continue to act conservatively and sustain lean inventory levels.

謝謝你，凱倫。中美關稅談判近期達成初步框架，向市場發出正面訊號。然而，大多數面板客戶仍然採用按需生產模式，並保持較低的庫存水準。在汽車顯示 IC 業務中，由於客戶繼續採取保守策略並維持精簡庫存水平，（技術難度）需求可見度仍然很低。

Despite the limited short-term visibility in the automotive market, we remain optimistic about our automotive business outlook for the (technical difficulty) by our leading new technology offerings and comprehensive customer coverage. Meanwhile, we continue to focus on the expansion into emerging areas beyond display ICs, including ultralow power AI, CPO, and smart glasses, all novel applications characterized by high growth potential, high added value, and high technological barriers (technical difficulty) positioned to become new growth drivers for Himax soon.

儘管汽車市場短期前景不明朗，但我們憑藉領先的新技術產品和全面的客戶覆蓋，對汽車業務前景（技術難題）仍然保持樂觀。同時，我們繼續專注於向顯示積體電路以外的新興領域拓展，包括超低功耗人工智慧、CPO 和智慧眼鏡，所有這些新興應用都具有高成長潛力、高附加價值和高技術障礙（技術難度），預計很快就會成為 Himax 新的成長動力。

Before I elaborate on those new business areas, let me touch base on the automotive IC business. Himax has been deeply engaged in the automotive display market for nearly two decades, offering a comprehensive (technical difficulty) technologies spanning from LCD to OLED. Amid intense industry competition, Himax holds a solid leadership position with number one global market share across all segments of automotive display ICs and an overwhelming lead over competitors. As smart interiors advance, (technical difficulty) larger, higher-resolution and more innovative displays, including the adoption of OLED displays for high-end vehicles.

在詳細介紹這些新的業務領域之前，讓我先簡單介紹一下汽車積體電路業務。Himax 已深耕汽車顯示市場近二十年，提供從 LCD 到 OLED 的全面（技術難度）技術。在激烈的行業競爭中，海邁斯憑藉在汽車顯示集成電路所有細分市場中全球市場份額第一的地位，以及對競爭對手的壓倒性領先優勢，佔據了穩固的領導地位。隨著智慧內飾的進步（技術難度），更大、更高解析度和更具創新性的顯示屏，包括在高檔汽車中採用 OLED 顯示屏。

Himax is well positioned to benefit from this trend. Looking ahead, we expect further growth in automotive TDDI and Tcon technologies, driven by (technical difficulty) global panel makers, Tier 1 suppliers, and automakers. Both TDDI and Tcon are advanced display solutions for vehicles and have already been successfully designed into hundreds of projects worldwide. Meanwhile, in the traditional DDIC segment, shipments remain relatively stable due to long product life cycles and the nature of many applications such as dashboards, head-up displays, and rear- and side-view mirrors that do not require touch functionality, thereby continuing to generate long-term and stable DDIC revenues for Himax.

Himax 已做好充分準備，將從這一趨勢中受益。展望未來，我們預計汽車TDDI和Tcon技術將進一步成長，這主要得益於全球面板製造商、一級供應商和汽車製造商（技術難度較高）的推動。TDDI 和 Tcon 都是先進的車載顯示解決方案，並且已經在全球數百個專案中成功應用。同時，在傳統的DDIC領域，由於產品生命週期長，以及儀錶板、抬頭顯示器、後視鏡和側視鏡等許多應用不需要觸控功能，出貨量保持相對穩定，從而繼續為Himax創造長期穩定的DDIC收入。

In addition, Himax has been deeply engaged in automotive OLED technology development (technical difficulty) expanding product portfolio and an increasing number of leading global automakers accelerating adoption of OLED technology in new vehicle models, we expect OLED display adoption in the automotive sector to grow rapidly starting in 2027.

此外，海邁思一直致力於汽車OLED技術開發（技術難度），不斷擴大產品組合，越來越多的全球領先汽車製造商正在加速在新車型中採用OLED技術，我們預計從2027年開始，OLED顯示器在汽車領域的應用將迅速增長。

Despite lingering economic uncertainty, Himax continues to actively expand its business beyond display ICs, focusing on ultralow power AI, CPO, and smart glasses. Through years of dedicated investment and R&D, Himax has established a solid technological foundation and a strong patent portfolio in these areas, while closely collaborating with partners to (technical difficulty) mass production and real-world applications. As these emerging businesses gradually materialize, they are poised to become key growth engines for Himax, reduce our reliance on the display IC market and further enhance both profitability and long-term competitiveness.

儘管經濟狀況持續不明朗，海邁仍積極拓展顯示晶片以外的業務，專注於超低功耗人工智慧、CPO和智慧眼鏡。透過多年的專注投資和研發，海麥克斯在這些領域建立了堅實的技術基礎和強大的專利組合，同時與合作夥伴緊密合作，克服技術難題，實現大規模生產和實際應用。隨著這些新興業務逐步成型，它們有望成為海邁思的關鍵成長引擎，減少我們對顯示積體電路市場的依賴，並進一步提高獲利能力和長期競爭力。

First, on the WiseEye AI domain. WiseEye enables battery-powered endpoint devices with real-time analysis, precise recognition, and environmental awareness at ultralow power consumption of merely a few milliwatts. Leveraging these core strengths, WiseEye has been successfully adopted by multiple leading global notebook brands with ongoing collaborations with customers (technical difficulty)

首先，我們先來看看 WiseEye AI 領域。WiseEye 讓電池供電的終端設備能夠以極低的功耗（僅幾毫瓦）實現即時分析、精確識別和環境感知。憑藉這些核心優勢，WiseEye 已被多家全球領先的筆記型電腦品牌成功採用，並與客戶保持持續的合作關係。（技術難題）

WiseEye has also been widely deployed across various domains such as smart door locks, palm vein authentication, and smart home appliances, partnering with top-tier global customers to co-develop a range of innovative applications. Our WiseEye module business features a simple design and ease of integration, making it highly suitable for diverse AIoT applications. It has already been adopted in applications such as smart parking systems, access control, palm vein authentication, smart offices, and smart home, with the number of design-in projects fast expanding.

WiseEye 也已廣泛部署在智慧門鎖、掌紋認證和智慧家居設備等各個領域，並與全球頂級客戶合作，共同開發一系列創新應用。我們的 WiseEye 模組業務具有設計簡潔、易於整合的特點，使其非常適合各種 AIoT 應用。該技術已被應用於智慧停車系統、門禁控制、掌紋認證、智慧辦公室和智慧家庭等領域，設計融入專案的數量正在快速增長。

Further, a recent major application addition is in smart glasses, a new product category characterized by extremely demanding low power. WiseEye enables real-time AI functionality at industry-leading ultralow power consumption while supporting always-on sensing for surroundings and event-based eye-tracking to deliver a natural and intuitive human–machine interaction. It has been adopted by numerous major tech giants, traditional ODMs, brands, and startups to integrate into their new smart glasses projects. Looking ahead, the WiseEye business is entering a phase of rapid growth, becoming one of our key growth engines.

此外，智慧眼鏡是最近新增的主要應用領域，這是一個對低功耗要求極高的新產品類別。WiseEye 以業界領先的超低功耗實現即時 AI 功能，同時支援對周圍環境的持續感知和基於事件的眼動追踪，從而提供自然直觀的人機互動。眾多大型科技公司、傳統ODM廠商、品牌商和新創公司都已採用該技術，將其整合到他們的新型智慧眼鏡專案中。展望未來，WiseEye 業務正進入快速成長階段，成為我們關鍵的成長引擎之一。

In the field of Co-Packaged Optics CPO, Himax leverages its proprietary (technical difficulty) nano-imprinting technology. Together with our partner, FOCI, we have achieved significant breakthroughs in silicon photonics technology, with the first-generation solution being validated by key customers and partners as we work toward mass production readiness in 2026.

在共封裝光學元件 (CPO) 領域，Himax 利用其專有的（技術難度高的）奈米壓印技術。我們與合作夥伴 FOCI 一起，在矽光子技術方面取得了重大突破，第一代解決方案已通過主要客戶和合作夥伴的驗證，我們正在努力實現 2026 年的大規模生產準備。

In parallel, joint development efforts with leading customers (technical difficulty) technologies to meet the explosive bandwidth demands of HPC and AI applications, while addressing the critical challenge of overheating in high-speed transmission. Himax expects CPO to become a major revenue and profit contributor in the years ahead.

同時，與領先客戶共同開發（技術難題）技術，以滿足高效能運算和人工智慧應用爆炸性成長的頻寬需求，同時解決高速傳輸中過熱這一關鍵挑戰。Himax預計CPO將在未來幾年成為公司主要的收入和利潤貢獻者。

(technical difficulty) Let me touch base on the status of our smart glasses businesses. Driven by generative AI and large language models, the smart glasses market is experiencing a resurgence and is seen as the next high-growth, high-volume market opportunity. Smart glasses has been one of Himax’s key long-term strategic focus areas where we are among (technical difficulty) that possess three critical enabling technologies for smart glasses, namely ultralow power intelligent image sensing, microdisplay, and nano-optics, giving Himax a unique opportunity to take advantage of the potentially explosive growth of smart glasses.

（技術難題）讓我簡單介紹一下我們智慧眼鏡事業的現況。在生成式人工智慧和大型語言模型的推動下，智慧眼鏡市場正在復甦，並被視為下一個高成長、高銷售的市場機會。智慧眼鏡一直是海麥克斯的一項關鍵長期戰略重點領域，我們擁有智慧眼鏡的三項關鍵使能技術，即超低功耗智慧影像感測、微顯示和奈米光學，這使海麥克斯有機會利用智慧眼鏡潛在的爆炸性增長。

In intelligent sensing, Himax’s WiseEye AI delivers always-on, ultralow power contextual awareness with average power consumption of just a few milliwatts. It significantly enhances the interactivity and perception of smart glasses while preserving battery life of the smart glasses device.

在智慧感知方面，Himax 的 WiseEye AI 可實現始終在線、超低功耗的上下文感知，平均功耗僅為幾毫瓦。它顯著增強了智慧眼鏡的互動性和感知能力，同時保持了智慧眼鏡設備的電池續航力。

In microdisplay, Himax’s latest Front-lit LCoS microdisplay specifically tailored for AR glasses has attracted strong market attention since its debut. It achieves an optimal combination of form factor, weight, power consumption, and cost, while delivering high brightness and high color saturation in full-color display performance, all key attributes for AR glasses.

在微型顯示器領域，Himax 最新推出的專為 AR 眼鏡量身定制的前照式 LCoS 微型顯示器自問世以來就引起了市場的強烈關注。它在外形尺寸、重量、功耗和成本方面實現了最佳組合，同時在全彩顯示性能中提供了高亮度和高色彩飽和度，這些都是 AR 眼鏡的關鍵屬性。

With over a decade (technical difficulty) with leading tech names and a proven record of reliable delivery, Himax’s new LCoS product, now in sampling stage, has attracted the attention of numerous AR glasses players worldwide. In the field of nano-optics, Himax offers proprietary WLO technology for advanced nano- (technical difficulty) guide solutions which, when bundled with microdisplay, forms the display system required of AR glasses. Looking ahead, we expect revenues from AR and AI glasses related applications to grow substantially over the next few years.

Himax 與領先的技術公司合作十餘年（克服了技術難題），並擁有可靠的交付記錄，其全新的 LCoS 產品目前處於樣品階段，已引起全球眾多 AR 眼鏡廠商的關注。在奈米光學領域，Himax 提供專有的 WLO 技術，用於先進的奈米（技術難度）引導解決方案，該技術與微型顯示器結合使用，即可構成 AR 眼鏡所需的顯示系統。展望未來，我們預計未來幾年AR和AI眼鏡相關應用的營收將大幅成長。

With that, I will now begin with an update on the large panel driver IC business. In Q4, large display driver IC sales are expected to increase single digit sequentially, driven by new notebook TDDI projects entering mass production, along with customers’ restocking of monitor IC products following several subdued quarters.

接下來，我將開始介紹大型面板驅動IC業務的最新情況。第四季度，受筆記型電腦TDDI新項目進入量產階段以及客戶在經歷了幾個低迷季度後對顯示器IC產品進行補充庫存的推動，大型顯示驅動IC的銷量預計將環比實現個位數增長。

Despite a challenging (technical difficulty) continue to advance our technology roadmap for next-generation displays to achieve faster data transmission, lower latency, improved power efficiency, and high-speed interface for next generation premium and gaming displays. In the notebook sector, we continue to focus on the growing adoption of OLED displays and advanced touch features in premium models, driven by the rise of AI PCs and demand for more interactive, productivity-enhancing experiences.

儘管面臨挑戰（技術難題），我們仍將繼續推進下一代顯示器的技術路線圖，以實現更快的資料傳輸、更低的延遲、更高的能源效率以及為下一代高階和遊戲顯示器提供的高速介面。在筆記型電腦領域，我們繼續關注高階機型中 OLED 顯示器和先進觸控功能的日益普及，這得益於人工智慧 PC 的興起以及對更具互動性、更能提高生產力的體驗的需求。

Himax is well-positioned to capitalize on opportunities with a comprehensive range of ICs for both LCD and OLED notebooks, including DDIC, Tcon, touch controllers, and TDDI. Multiple projects for OLED displays, (technical difficulty) leading panel makers in Korea and China.

Himax 擁有適用於 LCD 和 OLED 筆記型電腦的全系列 IC 產品，包括 DDIC、Tcon、觸控控制器和 TDDI，因此能夠很好地掌握市場機會。多個OLED顯示器專案（技術難度較高），韓國和中國的領先面板製造商。

Turning to the small and medium-sized display driver IC business. In Q4, small and medium-sized display driver IC business is expected to slightly decline from last quarter. (technical difficulty) driver IC sales, including TDDI and traditional DDIC, are set to increase single digit quarter-over-quarter, largely driven by the continued adoption of TDDI technology among major customers across all continents.

轉向中小尺寸顯示驅動IC業務。預計第四季中小顯示驅動IC業務將較上季略有下滑。 （技術難題）驅動IC銷售額，包括TDDI和傳統DDIC，預計將實現個位數環比增長，這主要得益於各大洲主要客戶對TDDI技術的持續採用。

Despite the challenging macro environment, our automotive driver IC sales for the full year 2025 (technical difficulty) grow single digit year-over-year, with total volume projected to outgrow the global automotive shipment. Himax remains the leader in this market, with a market share well above 50%, far outpacing those of competitors.

儘管宏觀環境充滿挑戰，但我們2025年全年汽車驅動積體電路銷量（技術難度）仍將實現個位數年增率，預計總銷量將超過全球汽車出貨量。Himax 仍然是該市場的領導者，市佔率遠超 50%，遠超過競爭對手。

Traditional automotive DDIC demand remains solid despite partial replacement by TDDI. The transition continues to be gradual, as many automotive displays, such as dashboards, HUDs, and rear- and side-view mirrors, do not require touch functionality and typically have long product lifecycles.

儘管傳統汽車用DDIC部分被TDDI取代，但其需求依然強勁。這一轉變仍然是漸進的，因為許多汽車顯示器，如儀錶板、抬頭顯示器、後視鏡和側視鏡，不需要觸控功能，而且通常產品生命週期很長。

Himax holds a solid 40% market share in traditional DDIC (technical difficulty) 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 while addressing diverse design needs and cost considerations.

Himax 在傳統 DDIC（技術難度）領域，無論是傳統汽車顯示器應用還是下一代汽車顯示應用，都佔據了 40% 的市場份額。Himax 在汽車顯示 IC 創新領域也持續保持領先地位，率先針對各種面板類型開發解決方案，同時滿足不同的設計需求和成本考量。

For example, in ultra-large touch displays, we led the industry by introducing LTDI solution which began mass production in Q3 2023. LTDI has been gaining traction, driven by increasing popularity of larger in-vehicle displays that demand higher performance, improved signal integrity, and simplified (technical difficulty) leading global brands are on track to enter mass production as move into 2026.

例如，在超大觸控顯示器領域，我們率先推出了 LTDI 解決方案，該方案於 2023 年第三季開始量產，引領了產業發展。LTDI 正在獲得發展動力，這得益於車載大尺寸顯示器的日益普及，這些顯示器需要更高的性能、更好的訊號完整性和更簡化的技術難度。隨著 2026 年的到來，全球領先的品牌有望進入大規模生產階段。

For smaller displays with form factor and budget constraints, we provide single-chip designs that combine TDDI and local dimming Tcon. This enables advanced local dimming in small-size displays, reduces overall system cost, and improves power efficiency, making it an attractive choice for customers. For high end displays, during the recent SID Vehicle Displays and Interfaces Symposium, one of the industry's leading events for automotive display and HMI technologies.

對於尺寸和預算有限制的小型顯示器，我們提供結合了 TDDI 和局部調光 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，降低系統總成本，並提高電源效率，從而成為客戶的理想選擇。在最近舉行的 SID 車輛顯示與介面研討會上，針對高端顯示器，作為汽車顯示和人機互動技術領域的行業領先盛會之一，我們進行了討論。

Himax showcased the industry's first OLED touch IC that supports both tactile knobs and capacitive touch keys, enabling flexible design options and delivering a safer, more intuitive control experience for OLED automotive displays. Himax continues to advance interactive display technologies that enhance driver safety and cabin ergonomics.

Himax 展示了業界首款 OLED 觸控 IC，該 IC 同時支援觸覺旋鈕和電容式觸控鍵，從而實現了靈活的設計選擇，並為 OLED 汽車顯示器提供了更安全、更直觀的控制體驗。Himax持續推動互動顯示技術的發展，以提高駕駛員安全性和車廂人體工學性能。

(technical difficulty) displays is expected to accelerate starting in 2027. This presents an attractive opportunity to further solidify our leadership in the automotive display market where we already has a dominant market share position across DDIC, TDDI, and local dimming Tcon for LCD displays. We provide ASIC OLED driver and Tcon solutions that entered mass production a few years back, and now we also provide standard ICs ready for broader deployment.

（技術難題）顯示器預計將從 2027 年開始加速發展。這為我們進一步鞏固在汽車顯示市場的領導地位提供了一個極具吸引力的機會，我們已經在液晶顯示器的 DDIC、TDDI 和局部調光 Tcon 領域佔據了主導市場份額。我們提供幾年前已投入量產的ASIC OLED驅動器和Tcon解決方案，現在我們也提供可廣泛部署的標準IC。

In parallel, we are collaborating with major panel makers on new custom ASIC developments to address diverse customer requirements. Additionally, our advanced OLED on-cell touch control technology delivers an industry-leading signal-to-noise ratio, ensuring reliable performance even under challenging conditions such as glove or wet-finger operation. These OLED on-cell touch ICs entered mass production in 2024 and are being (technical difficulty) models.

同時，我們正與各大面板製造商合作開發新的客製化ASIC晶片，以滿足客戶多樣化的需求。此外，我們先進的 OLED 螢幕觸控技術實現了業界領先的信噪比，即使在戴手套或手指潮濕等具有挑戰性的條件下，也能確保可靠的性能。這些 OLED on-cell 觸控 IC 於 2024 年進入量產階段，並且是（技術難度）型號。

As the industry transitions to next-generation OLED display for high-end vehicles, Himax is uniquely positioned to capture the accelerating adoption of OLED in future automotive displays, replicating our success in the LCD by leveraging nearly two decades of automotive display expertise, strategic partnerships established with leading panel makers across China, Korea, and Japan, and a proven record in mass production and product quality that adheres to the world's most stringent global standards for quality, reliability, and safety.

隨著業界向高端汽車的下一代 OLED 顯示器轉型，海邁斯憑藉其獨特的優勢，能夠抓住未來汽車顯示器中 OLED 加速普及的機遇，複製我們在 LCD 領域的成功。我們利用近二十年的汽車顯示器專業知識，與中國、韓國和日本領先的面板製造商建立的戰略合作夥伴關係，以及在大規模生產和產品品質方面久經考驗的記錄，我們的產品品質符合全球最嚴格的品質、可靠性和安全性標準。

Moving to smartphone and tablet IC sales for LCD panel, we expects revenues for both segments to decline quarter-over-quarter, as customers pulled forward purchases in prior quarters. However, in the smartphone OLED market, we are making solid progress in collaborations with customers in Korea and China, with mass production set to ramp in Q4 this year and volume to increase further in the (technical difficulty)

再來看智慧型手機和平板電腦液晶面板的積體電路銷售，我們預期這兩個部門的收入將環比下降，因為客戶提前購買了前幾季的產品。然而，在智慧型手機OLED市場，我們與韓國和中國客戶的合作取得了穩步進展，預計今年第四季開始量產，產量也將進一步提高。（技術難題）

Meanwhile, for OLED tablets, several new projects with top-tier brands are expected to enter mass production heading into 2026. In parallel, we are developing new technologies that enable value-added features such as active stylus, ultra-slim bezel designs, and higher frame rate (technical difficulty)

同時，在OLED平板電腦領域，預計到2026年，幾個頂級品牌的新項目將進入量產階段。同時，我們正在開發新技術，以實現諸如主動式觸控筆、超薄邊框設計和更高幀速率等增值功能。（技術難題）

I would like to now turn to our Non-Driver IC business update (technical difficulty) we expect Q4 revenues to increase single digit sequentially. First for an update on our Tcon business. We anticipate Q4 Tcon sales to be flat. However, Q4 automotive Tcon sales are well-positioned to grow single digit sequentially, fueled by a strong pipeline of more than 200 design-win projects gradually entering mass production. Many of these projects feature local dimming functionality, an area where Himax maintains a dominant market position.

現在我想談談我們的非驅動積體電路業務最新進展（技術難題），我們預計第四季度營收將環比實現個位數成長。首先，讓我們來了解一下Tcon業務的最新進展。我們預計第四季度Tcon的銷售額將與上季持平。然而，由於 200 多個中標設計項目正逐步進入量產階段，第四季度汽車 Tcon 的銷售額預計將實現個位數環比增長。這些項目中有許多都採用了局部調光功能，而Himax在該領域保持著市場主導地位。

(technical difficulty) 2025 automotive Tcon sales are set to grow by approximately 50% year-over-year, laying a solid foundation for sustained growth as we move into 2026. In contrast, Tcon for monitor, notebook and TV products are expected to decline sequentially, primarily a result of customers pulling forward inventory purchases early this year. We continue to lead in automotive Tcon innovation.

（技術難題）2025 年汽車 Tcon 銷量預計將年增約 50%，為 2026 年的持續成長奠定堅實的基礎。相比之下，顯示器、筆記型電腦和電視產品的 Tcon 預計將環比下降，這主要是由於客戶在今年年初提前採購庫存所致。我們在汽車Tcon創新領域持續保持領先地位。

Our new generation local dimming Tcons offer advanced features such as edge sharpness and high dynamic range, ideal for customers looking to upgrade their displays for better panel performance. Meanwhile, head-up displays are rapidly emerging (technical difficulty)high-contrast, AR-enhanced visuals within automotive displays, fueling demand for advanced Tcon solutions.

我們新一代的局部調光 Tcon 具有邊緣清晰度和高動態範圍等先進功能，是希望升級顯示器以獲得更好面板性能的客戶的理想選擇。同時，抬頭顯示器正在迅速發展（技術難度較高），在汽車顯示器中實現高對比度、AR增強視覺效果，從而推動了對先進Tcon解決方案的需求。

To address this trend, we launched an integrated Tcon that features the industry’s first full-area selectable local de-warping function, combined with Himax’s market-leading local dimming and on-screen display technologies.

為了因應這一趨勢，我們推出了整合式 Tcon，它具有業界首個全區域可選局部去畸變功能，並結合了 Himax 市場領先的局部調光和螢幕顯示技術。

The newly introduced multifunctional Tcon offers industry-first full-area selectable local de-warping capability, a major advancement over existing solutions that typically offer only full-screen or limited split-screen de-warping. Built on (technical difficulty) local dimming technology, the new de-warping Tcon solution continues to deliver exceptional contrast performance and effectively eliminates the undesired postcard effect commonly seen in HUDs, caused by backlight leakage typical of conventional TFT-LCD panels.

新推出的多功能 Tcon 提供了業界首創的全區域可選局部去畸變功能，相比通常僅提供全螢幕或有限分割畫面去畸變的現有解決方案，這是一個重大進步。基於（技術難度）局部調光技術，新的去畸變 Tcon 解決方案繼續提供卓越的對比度性能，並有效消除 HUD 中常見的由傳統 TFT-LCD 面板典型的背光洩漏引起的明信片效應。

Our industry-leading OSD function (technical difficulty) information to remain visible on the display even when the main system is shut down, thereby enhancing overall driving safety. The new Tcon solution supports a broad range of HUD architectures, including Windshield HUD, Augmented Reality HUD (ARHUD), and (technical difficulty) (PHUD) systems, while accommodating diverse design and cost requirements. Several customer projects are already underway, reflecting strong market recognition of our advanced HUD Tcon technology.

我們業界領先的 OSD 功能（技術難題）資訊即使在主系統關閉時也能在顯示器上保持可見，從而提高整體駕駛安全性。新的 Tcon 解決方案支援各種 HUD 架構，包括擋風玻璃 HUD、擴增實境 HUD (ARHUD) 和（技術難度） (PHUD) 系統，同時滿足各種設計和成本要求。目前已有多個客戶專案正在進行中，這反映出市場對我們先進的 HUD Tcon 技術給予了高度認可。

Switching gears to the WiseEye ultralow power AI (technical difficulty) power AI processor, always-on CMOS image sensor, and CNN-based AI algorithm at its core. As AI continues to advance at an unprecedented pace, WiseEye is uniquely positioned with context-aware, on-device AI inferencing that delivers (technical difficulty) power efficiency of just a few milliwatts with a compact form factor while fortified by industrial-grade security.

接下來我們來看看 WiseEye 超低功耗 AI（技術難題）處理器、始終開啟的 CMOS 影像感測器以及其核心的基於 CNN 的 AI 演算法。隨著人工智慧以前所未有的速度不斷發展，WiseEye 憑藉其情境感知、設備端人工智慧推理技術，在緊湊的外形尺寸下實現了僅幾毫瓦的（技術難題）能效，並輔以工業級安全保障，從而佔據了獨特的市場地位。

This combination enables advanced AI capabilities in endpoint devices that were once constrained by power and size limitations, driving expanding adoption across a wide (technical difficulty) smart home solutions, and, more recently, AI and AR glasses. This growing momentum highlights WiseEye’s role as a trusted on-device AI sensing enabler, powering smarter and more power-efficient solutions across everyday devices and AIoT applications.

這種組合使得曾經受制於功率和尺寸限制的終端設備能夠具備先進的人工智慧功能，從而推動了智慧家庭解決方案（技術難度較高）以及最近人工智慧和擴增實境眼鏡等領域的廣泛應用。這一不斷增長的勢頭凸顯了 WiseEye 作為值得信賴的設備端 AI 感測賦能者的作用，為日常設備和 AIoT 應用提供更智慧、更節能的解決方案。

In notebooks, WiseEye’s human presence detection has seen expanding adoption across leading global brands, driven by its ultralow power consumption of merely a few milliwatts, instant responsiveness, and privacy-centric design, perfectly aligned with the industry’s transition toward always-aware (technical difficulty) are scheduled to enter mass production starting in 2026.

在筆記型電腦領域，WiseEye 的人體存在檢測技術憑藉其超低功耗（僅幾毫瓦）、即時響應和以隱私為中心的設計，已在全球領先品牌中得到廣泛應用，完美契合了行業向始終感知（技術難度）的轉型，併計劃於 2026 年開始量產。

Meanwhile, additional feature upgrades are being developed with our notebook customers to tackle more complex real-world scenarios and deliver greater user convenience, all while maintaining exceptional power efficiency. One such feature is gesture recognition that mimics keyboard input, allowing page scrolling or volume adjustment without keyboard.

同時，我們正在與筆記型電腦用戶共同開發額外的功能升級，以應對更複雜的實際場景，並提供更大的用戶便利性，同時保持卓越的能源效率。其中一項功能是手勢識別，它可以模擬鍵盤輸入，無需鍵盤即可滾動頁面或調整音量。

With large language model AI driving a shift from predefined command inputs to natural language human–machine interaction, another advanced feature currently under development is the (technical difficulty) keyword-spotting function, in which WiseEye serves as an ultralow power front end that performs wake-word detection, activating the CPU only when a specific trigger phrase is detected, enabling continuous audio monitoring while consuming very little power.

隨著大型語言模型 AI 推動從預定義命令輸入向自然語言人機交互的轉變，目前正在開發的另一項高級功能是（技術難度較高的）關鍵字識別功能，其中 WiseEye 用作超低功耗前端，執行喚醒詞檢測，僅在檢測到特定觸發短語時才激活 CPU，從而在消耗極少電量的同時實現持續音頻監控。

(technical difficulty) surveillance domain, WiseEye AI enhances security systems by combining accurate human-object distinction with event-driven activation, significantly reducing false triggers. In addition to the China market, where shipments to leading smart door lock vendors are already underway, we are now partnering with world-leading door lock (technical difficulty) palm vein biometric access, parcel recognition, and anti-pinch protection.

（技術難題）監控領域，WiseEye AI 透過將精確的人物區分與事件驅動激活相結合來增強安全系統，從而顯著減少誤觸發。除了中國市場（我們已經開始向領先的智慧門鎖供應商發貨）之外，我們現在還與世界領先的門鎖（技術難度）掌紋生物識別訪問、包裹識別和防夾保護供應商合作。

Recently, we introduced a state-of-the-art bimodal solution combining palm vein and facial authentication to meet customer demand for greater flexibility and reliability in smart door lock. The dual-authentication approach enhances both security and user convenience, marking a significant advancement in biometric technology while still consuming extreme low power, making it ideal for door lock application which is extremely demanding for power consumption.

最近，我們推出了最先進的雙模解決方案，結合了掌紋和臉部辨識技術，以滿足客戶對智慧門鎖更高靈活性和可靠性的需求。雙重認證方法既提高了安全性，又方便了用戶，標誌著生物識別技術的重大進步，同時功耗極低，使其成為對功耗要求極高的門鎖應用的理想選擇。

Several of the projects are slated for mass production starting in 2026. Notably, Himax solution complies with Europe’s General Data Protection Regulation GDPR, one of the world’s strictest data privacy laws. Our recent exhibitions at Sectech Sweden 2025 illustrate Himax’s proactive expansion into Europe’s security and access control market, one of the most privacy-regulated and innovation-driven markets globally.

其中一些項目計劃於 2026 年開始批量生產。值得注意的是，Himax 解決方案符合歐洲的《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。我們最近在 2025 年瑞典安防展 (Sectech Sweden 2025) 上的展覽表明，Himax 積極拓展歐洲安全和門禁管制市場，這是全球隱私監管最嚴格、創新驅動力最強的市場之一。

Himax demonstrated its technological readiness and credibility to European system integrators, OEMs, and customers seeking secure, contactless, and power-efficient authentication solutions.

Himax 向尋求安全、非接觸式和節能認證解決方案的歐洲系統整合商、OEM 廠商和客戶展示了其技術準備和信譽。

Next for an update (technical difficulty) which integrates Himax's ultralow power image sensor, AI processor, and pre-trained no-code/low-code AI algorithm. It’s designed to make AI simple and accessible, helping developers accelerate innovation and scale their products from prototype to commercial deployment. Thanks to its broad applicability, the WiseEye Module has been adopted across a wide range of domains, including leading brands’ upcoming smart home appliances and various security applications.

接下來將進行一次更新（技術難題），整合了海麥克斯的超低功耗影像感測器、AI處理器和預訓練的無程式碼/低程式碼AI演算法。它旨在讓人工智慧變得簡單易用，幫助開發者加速創新，並將產品從原型擴展到商業部署。由於其廣泛的適用性，WiseEye 模組已被廣泛應用於各個領域，包括領先品牌即將推出的智慧家居設備和各種安全應用。

Notably, our PalmVein module has attracted strong interest across multiple industries, rapidly securing design wins in smart access, workforce (technical difficulty) door locks, and more. Many of our WiseEye Module projects are scheduled to enter mass production in 2026.

值得一提的是，我們的 PalmVein 模組已引起多個行業的濃厚興趣，並迅速在智慧門禁、員工（技術難度）門鎖等領域贏得了設計訂單。我們許多 WiseEye 模組專案計劃於 2026 年進入量產階段。

In the AI sensing domain for AR and AI glasses, WiseEye AI processors continue to build strong momentum, being adopted and integrated into next-generation smart glasses by a growing number of (technical difficulty) worldwide. Smart glasses makers are leveraging WiseEye to deliver instant responsiveness for a wide range of AI applications while maintaining extended battery life.

在 AR 和 AI 眼鏡的 AI 感測領域，WiseEye AI 處理器持續保持強勁的發展勢頭，被全球越來越多的（技術難度）用戶採用並整合到下一代智慧眼鏡中。智慧眼鏡製造商正在利用 WiseEye 技術，在保持較長電池續航力的同時，為各種人工智慧應用提供即時回應。

The increasing number of design-in activities reflects broad recognition of (technical difficulty) unique ability to bring intelligent, context-aware vision sensing to next-generation wearable and AR devices, specifically to empower both outward and inward vision sensing.

設計活動數量的增加反映了人們普遍認識到（技術難度）將智慧、情境感知視覺感測帶入下一代穿戴式裝置和 AR 裝置的獨特能力，特別是增強向外和向內的視覺感測。

Outward vision sensing supports surrounding perception, object recognition, and spatial awareness, while inward sensing tracks eye movements, gaze direction, and pupil dynamics to enable natural and intuitive user interactions. Together, these capabilities redefine how users engage with both digital and physical environments, paving the way for more immersive, power-efficient (technical difficulty) to our latest advancement in LCoS microdisplay technology.

外部視覺感知支持周圍環境感知、物體識別和空間意識，而內部感知則追蹤眼球運動、注視方向和瞳孔動態，從而實現自然直觀的用戶互動。這些功能共同重新定義了使用者與數位和實體環境的互動方式，為我們最新的 LCoS 微顯示技術進步帶來了更沉浸式、更節能（技術難度）的體驗。

Following years of dedicated R&D and close collaboration with leading industry players, our proprietary Dual-Edge Front-lit LCoS microdisplay has achieved a breakthrough, delivering an optimal (technical difficulty) form factor, weight, power efficiency, performance, and cost, while offering ultra-high luminance and vibrant RGB display that meets the industry’s stringent specifications for next-generation see-through AR glasses.

經過多年的專注研發和與行業領先企業的密切合作，我們專有的雙邊前照式LCoS微顯示器取得了突破性進展，實現了最佳（技術難度）外形尺寸、重量、能效、性能和成本，同時提供了超高亮度和鮮豔的RGB顯示，滿足了行業對下一代透視式AR眼鏡的嚴格規範。

This breakthrough is showcased (technical difficulty) Front-lit LCoS microdisplay, which combines the illumination optics and LCoS panel into an ultra-compact form factor of just 0.09 c.c. and 0.2 grams, delivering up to 350,000 nits of brightness and 1 lumen output with a maximum power consumption of just 250 milliwatts. (technical difficulty) even under bright sunlight, while the ultra-compact design enables sleek and lightweight AR glasses suitable for everyday use.

這項突破性技術展示了前照式LCoS微型顯示器，它將照明光學元件和LCoS面板整合到僅0.09立方厘米、0.2克的超緊湊尺寸中，即使在強烈的陽光下也能提供高達35萬尼特的亮度和1流明的輸出，最大功耗僅為250毫瓦。此外，其超緊湊的設計也使得AR眼鏡輕薄時尚，適合日常使用。

Samples of our Front-lit LCoS were released early this quarter and are now being actively evaluated by several (technical difficulty) and specialized smart glasses makers, with joint development efforts progressing steadily. We will announce further progress in due course.

我們前照式LCoS的樣品已於本季初發布，目前正由幾家（技術難度較高）專業智慧眼鏡製造商積極評估，聯合開發工作正在穩步推進。我們將在適當時候公佈進一步進展。

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

我的季度報告到此結束。感謝您對Himax的關注。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。

Ladies and gentlemen, we are now in question-and-answer session. (Operator Instructions)

女士們、先生們，現在進入問答環節。（操作說明）

Donnie Teng, Nomura.

鄧文迪，野村證券。

Thank you, Jordan, for taking my question. My first question is regarding to your fourth-quarter guidance. So it looks like the revenue and gross margin can sequentially improve (technical difficulty) why we have a little bit conservative EPS guidance for the fourth-quarter?

謝謝喬丹回答我的問題。我的第一個問題是關於您第四季的業績預期。因此，營收和毛利率似乎可以較上季改善（技術難題），為什麼我們對第四季的每股盈餘預期略顯保守？

And the second question is for the CPO progress, I noticed that I think in the past couple of quarters, you indicated some breakthrough on the CPO business. And it looks like we have another progress recently. So just wondering if you can elaborate more on when we can deliver meaningful revenue from the CPO business into 2026. Thank you.

第二個問題是關於首席產品長 (CPO) 的進展，我注意到，在過去的幾個季度裡，你們在首席產品長業務方面取得了一些突破。最近看來我們又取得了新的進展。所以我想問一下，您能否詳細說明一下，到 2026 年，我們何時才能從 CPO 業務中獲得有意義的收入？謝謝。

Thank you, Donnie, for your first question about our seemingly better top line and gross margin guidance compared to bottom line. Well, thank you for pointing that out. (technical difficulty) as a standard practice, estimate our quarterly income tax based on our assessment of full year total income. And in Q3, as you know, we actually underestimated the Q3 profit in our guidance, right? And therefore, we have a major beat in our guidance.

唐尼，謝謝你提出的第一個問題，關於我們看似更好的營收和毛利率預期與淨利預期相比如何。謝謝您指出這一點。 （技術難題）依照慣例，我們會根據全年總收入的評估來估算季度所得稅。如您所知，我們在第三季的業績預期中實際上低估了第三季的利潤，對吧？因此，我們的指導意見出現了重大變化。

And so we underestimated Q3 profit and (technical difficulty) income tax expense. So we underestimated at the time we provided our guidance last quarter, therefore, we have to kind of add back the income tax that we under accrued in Q3 into Q4, and that turned out to be rather significant, given that compared to our current level of income. So we have to add back the income tax expense in the fourth-quarter.

因此，我們低估了第三季利潤和（技術上困難的）所得稅費用。因此，我們在上個季度提供業績指引時低估了業績，因此，我們必須將第三季少計入第四季的所得稅加回，考慮到我們目前的收入水平，這筆加回的金額相當可觀。因此，我們需要在第四季加回所得稅費用。

Another major reason is higher R&D expenses during Q4. So in addition to a few relatively expensive new tape outs scheduled for Q4, which is just a timing issue, right? I mean, we don't necessarily plan it that way, but it just happened that way. So we have a few more expensive tape out scheduled for Q4. (technical difficulty) in addition to that, we have recently been awarded a major R&D grant by Taiwan government's, so-called, I don't know what it's called, IC Innovation Program.

另一個主要原因是第四季研發支出較高。所以除了計劃在第四季度推出的幾款價格相對昂貴的新磁帶之外，這只是時間安排問題，對吧？我的意思是，我們未必是故意這樣計劃的，但事情就這樣發生了。因此，我們計劃在第四季度推出一些價格較高的磁帶產品。 （技術難題）除此之外，我們最近還獲得了台灣政府所謂的，我不知道叫什麼的，集成電路創新計劃的一項重大研發資助。

The government actually announced that publicly, so I'm allowed to talk about it. The schedule of the grant is as such that we are kind of asked to accelerate the R&D spending related to that project, which by the way is about our WiseEye product line. So we are kind of requested to speed up the spending. We are also getting the spend up in our grant, but as you know, our spending has to be much higher than the grant and that's how the game is made, right.

政府已經公開宣布了此事，所以我可以談論此事。該撥款的進度安排要求我們加快與該項目相關的研發支出，順便說一下，該項目是關於我們的 WiseEye 產品線的。所以我們被要求加快支出速度。我們也正在增加撥款的使用額，但正如你所知，我們的支出必須遠高於撥款額，這就是遊戲規則，對吧。

So we have to kind of speed up the R&D spending related to that project in Q4 as well. So these are the reasons. So you are right. If I take a longer-term view, there is no particular reason why our expense in Q4 are higher than those of the other three quarters of the year, but it just happened a few factors together. And again, thank you for pointing that out.

因此，我們也需要在第四季加快與該專案相關的研發支出。以上就是原因。你說得對。從長遠來看，我們第四季的支出高於其他三個季度並沒有什麼特別的原因，只是幾個因素共同作用的結果。再次感謝您指出這一點。

(technical difficulty) question, we are together with our partner FOCI, right? Our focus right now is getting the first-generation product validation completed and at the same time finalizing the development for the second-generation product, which by the way is in a very advanced stage, (technical difficulty) CPO or GPU product line, customer GPU product line. So to recap, this year, 2024, actually 2025, sorry, 2025 has been a year for engineering validation with small quantity sample shipments. So in all likelihood, we will be fully ready for volume production in 2026.

（技術難題）問題，我們是和我們的合作夥伴 FOCI 一起，對嗎？我們現在的重點是完成第一代產品的驗證，同時完成第二代產品的開發，順便說一下，第二代產品已經處於非常成熟的階段，（技術難度）CPO 或 GPU 產品線，客戶 GPU 產品線。綜上所述，今年（2024 年，實際上是 2025 年，抱歉，是 2025 年）是進行工程驗證的一年，主要透過小批量樣品發貨來實現。因此，我們很有可能在 2026 年全面做好大量生產的準備。

Now, as for the timing of the customer's mass production and also the revenue contribution for us in 2026, the next year, it is much harder for us to comment. And again, the main goal of 2026 is to complete the validation of our product and manufacturing process, right, by key customers/partners. And we believe, conservatively, there could be revenue contribution, but we don't really estimate the revenue contribution to be significant compared to our overall revenue.

至於客戶何時開始大量生產，以及明年（2026 年）能為我們帶來多少收入，我們很難做出評論。再次強調，2026 年的主要目標是完成我們產品和製造流程的驗證，對吧？這需要主要客戶/合作夥伴的驗證。保守估計，這或許能帶來一些收入貢獻，但我們不認為這部分收入貢獻會對我們的整體收入產生顯著影響。

Rather, we believe it will be still limited, because the switch to CPO involves a pretty complex ecosystem, which requires long lead time, right? So our technology may be ready and our immediate customer may be ready, but the repercussion of the switch throughout the whole ecosystem all the way down to the data center operators can be quite complex. So that is why we are not (technical difficulty).

相反，我們認為它仍然會受到限制，因為轉向 CPO 涉及一個相當複雜的生態系統，需要很長的準備時間，對嗎？因此，我們的技術可能已經準備就緒，我們的直接客戶也可能已經準備就緒，但這種轉變對整個生態系統乃至資料中心營運商的影響可能相當複雜。所以這就是我們不在的原因。（技術難題）

However, we believe we can potentially see rather meaningful top line and bottom line contributions starting in 2027 when we expect shipments for engineering runs, that is actually, by the way, based on our assessment, it is still before MP, that is only engineering runs. But that engineering run contribution, we believe, can already contribute rather meaningfully to our top line and bottom line.

然而，我們相信，從 2027 年開始，我們可能會看到相當有意義的營收和利潤貢獻，屆時我們預計工程試生產將開始出貨，順便說一句，根據我們的評估，這實際上還不是量產，只是工程試生產。但我們相信，工程營運方面的貢獻已經能夠對我們的營收和利潤做出相當有意義的貢獻。

And after that, after 2027, we shall enter official MP when the growth will likely be explosive. But again, I want to emphasize all this, everything I said above about timetable and contribution and all that are just our own best estimate for now. Ultimately, when and how the ramp will take place is a call to be made by the customers.

之後，也就是 2027 年之後，我們將正式進入 MP 階段，屆時成長可能會爆發式成長。但是，我再次強調，我上面所說的關於時間表、貢獻等等的所有內容，都只是我們目前最好的估計。最終，坡道何時以及如何建設，將由客戶決定。

I've seen online a question submitted about potential market penetration of the CPO technology. So I would address the question online as well. Naturally, based on the (technical difficulty) it will be full blown mass production. And again, the growth will be explosive. And naturally, as the technology becomes proven and more mature, CPO adoption, we believe will rise for AI data center application. So we believe with all the obvious benefits, like substantially raising transmission bandwidth and reducing power consumption and all that, right, of data transmission, we all know the drill. And all at the relatively low cost compared to the overall cost of a complex AI system.

我在網路上看到有人提出了一個關於CPO技術潛在市場滲透率的問題。所以我也會在線上回答這個問題。當然，根據（技術難度），它將全面大規模生產。而且，成長速度將會是爆炸性的。當然，隨著技術的成熟和完善，我們相信 CPO 在 AI 資料中心應用的採用率將會上升。因此，我們相信，考慮到所有顯而易見的好處，例如大幅提高傳輸頻寬、降低功耗等等，對吧，資料傳輸，我們都知道該怎麼做。而且與複雜的人工智慧系統的總成本相比，所有這些的成本都相對較低。

The CPO technology has the potential of very, very high market penetration of data center eventually. And we're not just saying this as our own opinion, we actually got (technical difficulty) opinions from across the board, our direct customer or end customer. Everybody seems to be holding that view. So everybody is like holding their breath and watching our step by step from validation to engineering run to mass production. And so it's a very exciting time for us and we are certainly under a lot of pressure, but we are quite confident we should be able to achieve what I just mentioned. But again, the ultimate timetable will be a call to be made by the customer.

CPO技術最終有可能在資料中心市場獲得非常非常高的滲透率。我們這麼說並非出於我們自己的觀點，而是實際上從各方面（技術上來說比較困難）收集了意見，包括我們的直接客戶和最終客戶。似乎每個人都持這種觀點。所以大家都屏息凝神地關注我們從驗證到工程運作再到大量生產的每一步。所以，這對我們來說是一個非常令人興奮的時刻，我們當然也承受著很大的壓力，但我們很有信心能夠實現我剛才提到的目標。但最終的時間表將由客戶決定。

(Operator Instructions)

（操作說明）

There’s one other question about our outlook, particularly for automotive market products 2026. I guess the question is because we do hold a very significant market share in the automotive display market, so display IC market, automotive display IC market. So I guess our view is probably meaningful for investors.

關於我們的展望，特別是對於 2026 年汽車市場產品，還有一個問題。我想這個問題是因為我們在汽車顯示器市場（即顯示器 IC 市場、汽車顯示器 IC 市場）佔據了非常重要的市場。所以我覺得我們的觀點對投資人來說可能很有意義。

We believe the auto market seems to be showing signs of bottoming out, judging by the customer's low inventory levels and strong rush orders over the last few quarters, and that is also actually (technical difficulty) for our exceeding our guidance last quarter. Having said that, the automotive market is quite sensitive to the overall economic condition and tariffs. And therefore, we don't really anticipate a very strong recovery next year. And in our view and in our base, our internal (technical difficulty)

我們認為，從過去幾季客戶的低庫存水準和強勁的緊急訂單來看，汽車市場似乎正在出現觸底反彈的跡象，而這實際上也是我們上個季度業績超出預期的原因（技術上困難）。話雖如此，汽車市場對整體經濟狀況和關稅相當敏感。因此，我們預計明年經濟不會強勁復甦。在我們看來，在我們的基本原則中，我們的內部（技術難題）

So our current strategy is to maintain the technology leadership and we start to further deepen customer engagement. And the very important focus for us next year is to continue to diversify our supply chain. And this is in response to the customer's request, some customer's request or need for our geographical diversification of our supply chain and our production. So we have very strong confidence over our dominant market share right now, backed by leading technology offerings and strong design-win pipelines, numbering hundreds of programs (technical difficulty) a very diverse customer base.

因此，我們目前的策略是保持技術領先地位，並開始進一步深化客戶互動。明年我們最重要的工作重點是繼續實現供應鏈多元化。這是為了回應客戶的要求，或者說是滿足客戶對我們供應鏈和生產進行地理多元化的需求。因此，我們目前對我們所佔據的市場主導地位充滿信心，這得益於我們領先的技術產品和強大的設計中標管道，其中包括數百個專案（技術難度高）以及非常多元化的客戶群。

So we feel we are probably reaching the bottom, but next year, if there's a rebound, we don't anticipate a very, very strong rebound. We believe it's a mild recovery. That's our current view.

所以我們覺得我們可能已經觸底了，但明年如果出現反彈，我們預計反彈幅度不會非常非常大。我們認為這是一次溫和的復甦。這是我們目前的觀點。

(technical difficulty) This a design win with a single large customer or multiple smaller ones? Presumably, you are talking about smart glasses. In our prepared remarks, we have three things for smart glasses, WiseEye, for always on application, both looking outward and inward for smart glasses. That covers both AR glasses and AI glasses. And the second thing is our LCoS microdisplay, which is only applicable to AR see-through glasses.

（技術難題）這是來自單一大客戶的設計方案，還是來自多個小客戶的設計方案？想必您指的是智慧眼鏡吧。在我們準備好的演講稿中，我們提出了三點關於智慧眼鏡、WiseEye、始終在線的應用、以及智慧眼鏡的內外觀察等方面的內容。這涵蓋了AR眼鏡和AI眼鏡。第二點是我們的LCoS微顯示器，它僅適用於AR透視眼鏡。

And the third one is our WLO, nano imprint technology, where we are holding a what we call optical foundry service business model, targeting only a very selected small number of customers. So the third one, involving rather complex design manufacturing process development, so it is going to be a few years away, although we are talking about some of the most significant customers, the biggest, some of the biggest names in the industry. So we still feel obligated (technical difficulty) But in terms of revenue contribution, the third thing, meaning WLO as a foundry service for waveguide targeting very big name customers, I think it's still a few years away.

第三項是我們的 WLO 奈米壓印技術，我們採用所謂的光學代工服務商業模式，只針對極少數精選客戶。第三個專案涉及相當複雜的設計製造流程開發，因此還需要幾年時間，儘管我們談論的是一些最重要的客戶，業內最大的一些知名企業。所以我們仍然感到有義務（技術困難），但就收入貢獻而言，第三點，即 WLO 作為面向知名客戶的波導代工服務，我認為還需要幾年時間。

WiseEye AI is an ongoing progress, very active ongoing progress. (technical difficulty) big and small, across not just US major names, but also Chinese, even Korean and Japanese are coming to us. And also, there are also major customers who are offering a platform of AR glass or smart glasses solution, and we have (technical difficulty) taken as their standard offering, part of their standard offering. So as that platform solution gets into more volume production, which is anticipated to take place starting next year, I think we'll see revenue contribution from our WiseEye product ramp.

WiseEye AI 正在不斷發展，而且發展勢頭非常強勁。 （技術難題）無論規模大小，不僅美國的主要公司，還有中國、韓國和日本的公司都在向我們尋求合作。此外，還有一些主要客戶提供 AR 眼鏡或智慧眼鏡解決方案平台，而我們（由於技術困難）已將其作為他們的標準產品的一部分。因此，隨著該平台解決方案進入更大規模的生產階段（預計將從明年開始），我認為我們將看到 WiseEye 產品量產帶來的收入貢獻。

And for LCoS microdisplay, which is for AR see-through glasses only, but not AI glasses. You need to have glasses with display to need our LCoS solution. We, again, in our prepare remarks, we believe we are offering a combination of factors with a real product, which is very promising and we believe it's something that is fully addressing the very difficult requirements of AR glasses for now.

而 LCoS 微顯示器僅適用於 AR 透視眼鏡，不適用於 AI 眼鏡。您需要一副帶有顯示器的眼鏡才能使用我們的LCoS解決方案。我們再次重申，在準備演講稿中，我們相信我們提供的是一款真正的產品，它結合了多種因素，前景非常光明，我們相信它能夠完全滿足目前 AR 眼鏡的非常苛刻的要求。

However, that product, we are only in sampling stage. So from sampling stage to ultimate mass production it is going to take some time. So, I don't really anticipate meaningful sales contribution from LCoS next year (technical difficulty) because again, we are only in sampling stage and customers need to take our LCoS solution to match waveguides and then with that, as a display solution that developed the full set of smart glasses products.

然而，對於該產品，我們目前還處於樣品階段。因此，從樣品製作階段到最終的大規模生產，需要一些時間。因此，我並不指望 LCoS 明年能帶來實質的銷售貢獻（技術難題），因為我們目前仍處於樣品階段，客戶需要將我們的 LCoS 解決方案與波導匹配，然後以此作為顯示解決方案，開發出全套智慧眼鏡產品。

So that is still going to take some time, although (technical difficulty) across the board. Again, this is very new and we are in the sampling stage, so it's going to be still quite an effort for us to take that to mass production together with our customers.

所以這仍然需要一些時間，儘管（技術困難）是普遍存在的。再次強調，這項技術非常新穎，我們目前還處於樣品階段，因此要與客戶一起將其推向大規模生產，我們還需要付出相當大的努力。

(technical difficulty) Could you give us an update on the second-generation CPO progress, do you expect a higher revenue number with second gen?

（技術難題）能否介紹一下第二代 CPO 的進展？您預計第二代產品的收入會更高嗎？

I cannot comment on specifics, but the key difference of first gen and second gen is the number of channels, right? And basically, we are more than doubling up from first gen to second gen. And actually (technical difficulty) is tremendous. And that also involves a pretty fundamental revision of our optical design to achieve that goal. And customers have made it very specific that, they are, key customers are very helpful for the success of our second gen because with the success of our second gen, it will be a very good product idea for GPU, which, as you know, is something requiring high bandwidth transmission.

我無法評論具體細節，但第一代和第二代的主要區別在於頻道數量，對嗎？基本上，我們第二代產品的產量比第一代產品翻了一番還多。實際上，（技術難度）非常大。為了實現這一目標，還需要對我們的光學設計進行相當根本性的修改。客戶們非常明確地表示，他們是關鍵客戶，對我們第二代產品的成功非常有幫助，因為第二代產品的成功將使其成為GPU領域一個非常好的產品理念，而GPU，正如您所知，需要高頻寬傳輸。

So upon the success and mass production of second gen, we believe certainly the (technical difficulty) as I mentioned in my earlier Q&A, I stick to our timetable for next year, the year after and 2026. So again, we don't want to over promise and let people feel that it is going to be immediate revenue contribution, but second gen is a big deal, it's a huge deal for us, for our partner and our customer.

因此，在第二代產品成功量產之後，我們相信（技術難題）肯定會像我在先前的問答中提到的那樣，我堅持我們明年、後年和 2026 年的時間表。所以，我們不想過度承諾，讓人們覺得它會立即帶來收入，但第二代產品意義重大，對我們、我們的合作夥伴和客戶來說都意義非凡。

Okay then thank you for all your questions. I think that will be the end of the Q&A session. And I'll pass the call back to Mr. Jordan Wu. Thank you.

好的，謝謝你們提出的所有問題。我想問答環節就到此結束了。我會把電話轉回吳喬丹先生。謝謝。

Thank you, operator. As a final note, Karen Tiao, our Head of IR/PR will maintain investor marketing activities and continue to attend investors conferences. We will announce the details as they come about. Thank you.

謝謝接線生。最後要說明的是，我們的投資人關係/公共關係主管 Karen Tiao 將繼續進行投資人行銷活動，並繼續參加投資人會議。我們會根據情況公佈具體細節。謝謝。

Thank you, Jordan. Ladies and gentlemen, this concludes third-quarter 2025 earnings conference. You may now disconnect. Thank you again. Goodbye.

謝謝你，喬丹。女士們、先生們，2025年第三季財報電話會議到此結束。您現在可以斷開連線了。再次感謝。再見。