奇景光電 (HIMX) 2021 Q1 法說會逐字稿

Ladies and gentlemen, welcome to the Himax Technologies, Inc. First Quarter 2021 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

女士們，先生們，歡迎來到 Himax Technologies, Inc. 2021 年第一季度收益電話會議。 （操作員說明）作為提醒，正在錄製此電話會議。

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

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

Welcome, everyone, to Himax's first quarter 2021 earnings call. Joining us from the Company are Mr. Jordan Wu, President and Chief Executive Officer; Ms. Jessica Pan, Chief Financial Officer; and Mr. Eric Li, Chief IR/PR Officer.

歡迎大家參加 Himax 的 2021 年第一季度財報電話會議。從公司加入我們的是總裁兼首席執行官 Jordan Wu 先生；首席財務官 Jessica Pan 女士；首席投資者關係/公關官 Eric Li 先生。

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 e-mail himx@mzgroup.us, access the press release on financial portals or download a copy from Himax's website at www.himax.com.tw.

在公司準備好的評論之後，我們在問答環節分配了時間進行提問。如果您還沒有收到今天的業績報告副本，請發送電子郵件至 himx@mzgroup.us，訪問金融門戶網站上的新聞稿或從 Himax 的網站 www.himax.com.tw 下載一份副本。

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

在我們開始正式發言之前，我想提醒大家，本次電話會議中的一些陳述，包括有關預期未來財務結果和行業增長的陳述，是前瞻性陳述，涉及許多風險和不確定性，可能導致實際事件或結果與本次電話會議中描述的事件或結果存在重大差異。

Factors that could cause actual events or results to differ materially from those described in this conference call include, but are not limited to, the effect of the COVID-19 pandemic on the Company's business; general business and economic conditions and the state of the semiconductor industry; market acceptance and competitiveness of the driver and non-driver products developed by the Company; demand for end-use application products; reliance on a small group of principal customers; the uncertainty of continued success in technological innovations; our ability to develop and protect our intellectual property; pricing pressures, including declines in average selling prices; changes in customer order patterns; changes in estimated full year effective tax rate; shortage in supply of key components; changes in environmental laws and regulations; changes in export license regulated by Export Administration Regulations(EAR); exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; our ability to collect accounts receivables; and manage inventory and other risks described from time to time in the Company's SEC filings, including those risks identified in the section entitled "Risk Factors" in its Form 20-F for the year ended December 31, 2020, filed with the SEC, as may be amended.

可能導致實際事件或結果與本次電話會議中描述的事件或結果存在重大差異的因素包括但不限於 COVID-19 大流行對公司業務的影響；一般商業和經濟狀況以及半導體行業的狀況；公司開發的驅動和非驅動產品的市場接受度和競爭力；對最終用途應用產品的需求；依賴一小群主要客戶；技術創新持續成功的不確定性；我們開發和保護我們的知識產權的能力；定價壓力，包括平均售價下降；客戶訂單模式的變化；估計全年有效稅率的變化；關鍵零部件供應短缺；環境法律法規的變化；出口管理條例 (EAR) 規定的出口許可證變更；匯率波動；對我們子公司進一步投資的監管批准；我們收取應收賬款的能力；管理公司向美國證券交易委員會提交的文件中不時描述的庫存和其他風險，包括向美國證券交易委員會提交的截至 2020 年 12 月 31 日止年度的 20-F 表格中標題為“風險因素”的部分中確定的那些風險，作為可能會被修改。

Except for the Company's full year of 2020 financials, which were provided in the Company's 20-F and filed with the SEC on March 31, 2021, the financial information included in this conference call is unaudited and consolidated and prepared in accordance with IFRS accounting. Such financial information is generated internally and has not been subjected to the same review and scrutiny, including internal auditing procedures and external audits by an independent auditor to which we subject our annual consolidated financial statements, and may vary materially from the audited consolidated financial information for the same period. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

除了在公司 20-F 中提供並於 2021 年 3 月 31 日向美國證券交易委員會備案的公司 2020 年全年財務數據外，本次電話會議中包含的財務信息未經審計，並根據 IFRS 會計編制。此類財務信息是內部生成的，沒有經過相同的審查和審查，包括內部審計程序和獨立審計師的外部審計，我們對年度合併財務報表進行了審計，並且可能與經審計的合併財務信息存在重大差異同一時期。公司不承擔因新信息、未來事件或其他原因而公開更新或修改任何前瞻性陳述的義務。

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

我現在想把電話轉給 Eric Li 先生。埃里克，地板是你的。

Q1 Results

第一季度結果

Thank you, Mark, and thank you, everybody, for joining us. My name is Eric Li, and I'm the Chief IR/PR Officer. Joining me are Jordan Wu, our CEO; and Jessica Pan, our CFO.

謝謝馬克，也謝謝大家加入我們。我叫 Eric Li，是首席 IR/PR 官。和我一起的是我們的首席執行官 Jordan Wu；和我們的首席財務官 Jessica Pan。

On today's call, I'll first review the Himax consolidated financial performance for the first quarter 2021, followed by the second quarter 2021 outlook. Jordan will then give an update on the status of our business. After which, we will take questions. We will review our financials on both IFRS and non-IFRS basis. The non-IFRS financials exclude share-based compensation and acquisition-related charges.

在今天的電話會議上，我將首先回顧 Himax 2021 年第一季度的綜合財務業績，然後是 2021 年第二季度的展望。然後，約旦將更新我們的業務狀況。之後，我們將進行提問。我們將在國際財務報告準則和非國際財務報告準則的基礎上審查我們的財務狀況。非 IFRS 財務數據不包括基於股份的薪酬和與收購相關的費用。

We preannounced the preliminary key financial results for the first quarter 2021 on April 7 as revenue, gross margin and EPS all exceeded the guidance issued on February 4, 2021. Today, our reported results for the revenue, gross margin and EPS are all in line with preannounced result. Revenue, gross margin and EPS all reached all-time highs in the first quarter of 2021.

我們在 4 月 7 日預先公佈了 2021 年第一季度的初步主要財務業績，收入、毛利率和每股收益均超過了 2021 年 2 月 4 日發布的指引。今天，我們報告的收入、毛利率和每股收益均符合預期與預先宣布的結果。收入、毛利率和每股收益均在 2021 年第一季度創下歷史新高。

For the first quarter, we recorded net revenue of $309 million, an increase of 12.1% sequentially and an increase of 67.4% compared to the same period last year. The 12.1% sequential increase of revenue exceeded our guidance of an increase of around 5% to 10% quarter-over-quarter, with strong demand across all of our major business segments.

第一季度，我們錄得淨收入 3.09 億美元，環比增長 12.1%，比去年同期增長 67.4%。收入環比增長 12.1%，超出我們預期的環比增長約 5% 至 10%，我們所有主要業務部門的需求都非常強勁。

Gross margin was 40.2%, exceeding guidance of 37% to 38%, and significantly improved from 31.2% of the fourth quarter 2020. IFRS profit per diluted ADS was 38.3 cents, exceeding our guidance of 30.0 cents to 34.0 cents. Strong sales and improved gross margin contributed to the better-than-expected earnings result. Non-IFRS profit per diluted ADS was 38.4 cents, exceeding our guidance of 30.1 cents and 34.1 cents.

毛利率為 40.2%，超過 37% 至 38% 的指導，與 2020 年第四季度的 31.2% 相比有顯著改善。國際財務報告準則每股攤薄 ADS 利潤為 38.3 美分，超過我們 30.0 美分至 34.0 美分的指導。強勁的銷售和改善的毛利率促成了好於預期的盈利結果。非 IFRS 每股攤薄 ADS 利潤為 38.4 美分，超過我們 30.1 美分和 34.1 美分的指導。

Revenue from large display driver was $69.9 million, up 8.8% sequentially and up 13.9% year-over-year. Notebook revenue increased more than 70% sequentially, driven by unceasing remote working and distance education demand. TV revenue was also up by around 8% quarter-over-quarter. Monitor IC sales, however, decreased sequentially due to foundry capacity shortage, as we predicted in the last earnings call. Large panel driver IC accounted for 22.6% of total revenue for this quarter compared to 23.3% in the fourth quarter of 2020 and 33.2% a year ago.

大型顯示驅動器的收入為 6990 萬美元，環比增長 8.8%，同比增長 13.9%。在不斷增長的遠程工作和遠程教育需求的推動下，筆記本電腦收入環比增長超過 70%。電視收入也環比增長了約 8%。然而，正如我們在上次財報電話會議中預測的那樣，由於代工產能短缺，監控 IC 銷售額環比下降。大面板驅動器 IC 佔本季度總收入的 22.6%，而 2020 年第四季度為 23.3%，一年前為 33.2%。

Small and medium-sized display driver continued to grow in the first quarter and came in better than expected, with revenue of $204.1 million, up 14.7% sequentially and up 133.3% year-over-year. TDDI for both smartphone and tablet saw robust growth in Q1, a continuation from high base in Q4 last year. From a year-over-year perspective, sales of both smartphone and tablet demonstrated massive growth. For automotive segment, we delivered a decent mid-teens sequential growth amidst a severe capacity shortage in automotive market worldwide. Small and medium-sized segment accounted for 66.1% of total sales for the quarter compared to 64.5% in the fourth quarter of 2020 and 47.4% a year ago.

中小尺寸顯示驅動器在第一季度繼續增長，好於預期，收入為 2.041 億美元，環比增長 14.7%，同比增長 133.3%。智能手機和平板電腦的 TDDI 在第一季度實現了強勁增長，延續了去年第四季度的高基數。從同比來看，智能手機和平板電腦的銷量都出現了大幅增長。對於汽車領域，在全球汽車市場產能嚴重短缺的情況下，我們實現了不錯的中期連續增長。中小型市場佔本季度總銷售額的 66.1%，而 2020 年第四季度為 64.5%，一年前為 47.4%。

Smartphone sales continued growing in the first quarter, with revenue reaching $80.2 million, up 20.6% sequentially and up 256.4% year-over-year. The smartphone segment represented 26% of our total sales in Q1. Our smartphone TDDI sales increased more than 30% sequentially and up five times compared to the same period last year, indicating strong market demand and our market share gains. Sales of traditional smartphone DDICs continued to decline as expected. As previously mentioned, traditional smartphone DDICs are quickly being replaced by TDDI and AMOLED.

第一季度智能手機銷量繼續增長，收入達到 8020 萬美元，環比增長 20.6%，同比增長 256.4%。智能手機部分占我們第一季度總銷售額的 26%。我們的智能手機 TDDI 銷量環比增長超過 30%，與去年同期相比增長了五倍，表明市場需求強勁，我們的市場份額也有所增加。傳統智能手機 DDIC 銷量如預期繼續下滑。如前所述，傳統的智能手機 DDIC 正在迅速被 TDDI 和 AMOLED 取代。

Our tablet revenue reached another record high of $73 million in the first quarter. Q1 sales of tablet drivers grew 8.3% sequentially and were up more than 150% year-over-year as strong demand for home working and online learning continued. The tablet revenue accounted for more than 23% of our total sales in the first quarter. The tablet TDDI revenue increased 10% sequentially, the fourth consecutive quarter of growth since its initial mass production in the first quarter of 2020. The sequential growth was due to the accelerated penetration of our leading tablet TDDI in the Android market where we are main or sole source supplier to major end customers. Revenue of traditional discrete driver IC for tablet increased 5.9% sequentially and grew 58.9% year-over-year in the first quarter.

我們的平板電腦收入在第一季度再創歷史新高，達到 7300 萬美元。由於對家庭工作和在線學習的強勁需求持續存在，平板電腦驅動器的第一季度銷售額環比增長 8.3%，同比增長超過 150%。平板電腦收入占我們第一季度總銷售額的 23% 以上。平板TDDI收入環比增長10%，自2020年第一季度首次量產以來連續第四個季度實現增長。環比增長是由於我們領先的平板TDDI在我們主要或主要終端客戶的唯一來源供應商。用於平板電腦的傳統分立驅動器 IC 收入環比增長 5.9%，第一季度同比增長 58.9%。

Our first quarter driver IC revenue for automotive amounted to $43.7 million, up 16.4% sequentially and up 44.3% year-over-year. Automotive driver IC business accounted for more than 14% of total revenue in this quarter. Notwithstanding the decent growth, we are still suffering from severe foundry capacity shortage for automotive applications. While the shortage is expected to persist, as indicated in the last earnings call, we do expect to enlarge our shipment quarter-by-quarter this year and beyond into next year. Jordan will elaborate on this in a few minutes.

我們第一季度的汽車驅動器 IC 收入為 4370 萬美元，環比增長 16.4%，同比增長 44.3%。汽車驅動IC業務佔本季度總收入的14%以上。儘管增長可觀，但我們仍然面臨汽車應用嚴重的代工產能短缺問題。正如上次財報電話會議所指出的，雖然短缺預計將持續存在，但我們確實預計今年和明年會逐季擴大出貨量。約旦將在幾分鐘內對此進行詳細說明。

First quarter revenue from our non-driver business was $35 million, up 4% sequentially but down 2% year-over-year. The sequential increase was mainly due to the increase of WLO shipment to an anchor customer for continuous legacy product demand as well as more Tcon shipments. The year-over-year decrease was due mainly to the decrease of WLO shipments. However, Tcon and the CMOS image sensor segments both registered an impressive year-over-year growth, up by more than 50% and 70%, respectively. Non-driver IC products accounted for 11.3% of total revenue as compared to 12.2% in the fourth quarter of 2020 and 19.4% a year ago.

我們非司機業務的第一季度收入為 3500 萬美元，環比增長 4%，但同比下降 2%。環比增長主要是由於 WLO 對主要客戶的出貨量增加，以滿足持續的遺留產品需求以及更多的 Tcon 出貨量。同比下降主要是由於WLO出貨量下降。然而，Tcon 和 CMOS 圖像傳感器領域都實現了令人印象深刻的同比增長，分別增長了 50% 和 70% 以上。非驅動 IC 產品佔總收入的 11.3%，而 2020 年第四季度為 12.2%，一年前為 19.4%。

Gross margin for the first quarter was 40.2%, up 9 percentage points sequentially and up 17.5 percentage points from same period last year. As the capacity shortage in the semiconductor industry intensified across foundry, packaging and testing, we further optimized our product mix by strategically favoring more high margin product, while pricing our products higher to reflect rising costs among all product segments. However, on a year-over-year basis, the leap of gross margin was somewhat offset by the decline in WLO shipment as the legacy product to an anchor customer gradually decreased.

第一季度毛利率為40.2%，環比上升9個百分點，比去年同期上升17.5個百分點。隨著半導體行業在晶圓代工、封裝和測試方面的產能短缺加劇，我們進一步優化了我們的產品組合，戰略上偏向於更高利潤率的產品，同時提高我們產品的定價以反映所有產品領域不斷上升的成本。然而，與去年同期相比，毛利率的飛躍在一定程度上被 WLO 出貨量的下降所抵消，因為對主要客戶的遺留產品逐漸減少。

Our IFRS operating expenses were $39.5 million in the first quarter, down 9.9% from preceding quarter but up 5.9% from a year ago. The operating expenses decreased sequentially because of a one-time cash bonus issued to the team in the fourth quarter 2020. The year-over-year increase was mainly a result of increased salary. Non-IFRS operating expenses for the first quarter were $39.2 million, down 9.9% from the previous quarter and up 6.9% from the same quarter in 2020.

我們的 IFRS 運營費用在第一季度為 3950 萬美元，比上一季度下降 9.9%，但比去年同期增長 5.9%。營業費用因2020年第四季度向團隊發放的一次性現金獎金而環比下降，同比增長主要是由於薪資增加所致。第一季度的非 IFRS 運營費用為 3920 萬美元，環比下降 9.9%，比 2020 年同季度增長 6.9%。

Reflecting higher sales and better gross margin, IFRS operating income was $84.8 million for the first quarter, with operating margin of 27.4%, up from 15.3% in prior quarter and up from 2.5% in the same quarter last year. First quarter non-IFRS operating income was $85.1 million or 27.5% of sales, higher from $42.5 million or 15.4% of sales last quarter and up from $5.3 million or 2.9% of sales for the same period last year. Both operating income and operating margin reached record highs.

反映更高的銷售額和更好的毛利率，第一季度 IFRS 營業收入為 8480 萬美元，營業利潤率為 27.4%，高於上一季度的 15.3% 和去年同期的 2.5%。第一季度非 IFRS 營業收入為 8510 萬美元，佔銷售額的 27.5%，高於上一季度的 4250 萬美元，佔銷售額的 15.4%，高於去年同期的 530 萬美元，佔銷售額的 2.9%。營業收入和營業利潤率均創歷史新高。

IFRS after-tax profit for the first quarter reached a historical high of $66.9 million or 38.3 cents per diluted ADS compared to $34 million or 19.5 cents per diluted ADS in previous quarter and $3.3 million or 1.9 cents per diluted ADS a year ago. First quarter non-IFRS profit was $67.1 million or 38.4 cents per diluted ADS compared to non-IFRS profit of $34.2 million or 19.7 cents per diluted ADS last quarter and non-IFRS profit of $3.8 million or 2.2 cents per diluted ADS for the same period last year.

第一季度的 IFRS 稅後利潤達到 6690 萬美元或每股攤薄 ADS 38.3 美分的歷史新高，而上一季度為 3400 萬美元或每股攤薄 ADS 19.5 美分，一年前為 330 萬美元或每股攤薄 ADS 1.9 美分。第一季度非 IFRS 利潤為 6710 萬美元或每份稀釋後 ADS 利潤 38.4 美分，而上一季度非 IFRS 利潤為 3420 萬美元或每份稀釋後 ADS 利潤 19.7 美分，同期非 IFRS 利潤為 380 萬美元或每份稀釋後 ADS 利潤 2.2 美分去年。

Turning to the balance sheet. We had $245.8 million of cash, cash equivalents and other financial assets as of March 31, 2021, compared to $126.6 million at the same time last year and $201.4 million a quarter ago. The higher cash balance was derived mainly from $60.3 million of operating cash inflow during the quarter. Restricted cash was $114.8 million at the end of Q1 compared to $104 million a quarter ago and $164 million a year ago. The restricted cash was mainly used to guarantee the short-term secured borrowings for the same amount. We had $57.0 million of long-term unsecured loans as of the end of Q1, of which $6.0 million was current portion.

轉向資產負債表。截至 2021 年 3 月 31 日，我們擁有 2.458 億美元的現金、現金等價物和其他金融資產，而去年同期為 1.266 億美元，上一季度為 2.014 億美元。較高的現金餘額主要來自本季度 6030 萬美元的經營現金流入。第一季度末受限制現金為 1.148 億美元，而上一季度為 1.04 億美元，一年前為 1.64 億美元。受限現金主要用於為等額短期擔保借款提供擔保。截至第一季度末，我們擁有 5700 萬美元的長期無抵押貸款，其中 600 萬美元是流動部分。

Our quarter end inventories as of March 31, 2021, were $114.9 million, up from $108.7 million last quarter and down from $148.4 million a year ago. The year-over-year decrease was a reflection of the severe supply-demand imbalance. To be more precise, the vast majority of our inventory position now is comprised of work-in-process goods, while finished goods are mostly taken up by customers as soon as they are available to meet the customer's immediate production needs. As highlighted in the last earnings call, given the foundry and back-end capacity shortage, our inventory level may still stay at a relatively low level in the quarters to come. Accounts receivable at the end of March 2021 was $289.1 million, up from $243.6 million last quarter and up from $186.7 million a year ago due to higher sales. DSO was 84 days at the quarter end as compared to 92 days a year ago and 100 days at the end of last quarter.

截至 2021 年 3 月 31 日，我們的季末庫存為 1.149 億美元，高於上一季度的 1.087 億美元，低於一年前的 1.484 億美元。同比下降反映了嚴重的供需失衡。更準確地說，我們現在絕大部分的存貨頭寸是由在製品組成的，而成品大部分是一有貨就被客戶拿走，以滿足客戶的即時生產需求。正如上次財報電話會議強調的那樣，鑑於代工和後端產能短缺，我們的庫存水平在未來幾個季度可能仍會保持在相對較低的水平。由於銷售額增加，2021 年 3 月底的應收賬款為 2.891 億美元，高於上一季度的 2.436 億美元和一年前的 1.867 億美元。 DSO 在本季度末為 84 天，而一年前為 92 天，上一季度末為 100 天。

Net cash inflow from operating activities for the first quarter amounted to $60.3 million as compared to an inflow of $67.7 million last quarter and an inflow of $10.6 million for the same period last year. First quarter capital expenditures was $2.0 million versus $0.8 million last quarter and $3.1 million a year ago. The first quarter CapEx was mainly for R&D-related equipment of our IC design business.

第一季度經營活動產生的現金流量淨額為 6030 萬美元，上一季度為 6770 萬美元，去年同期為 1060 萬美元。第一季度資本支出為 200 萬美元，上一季度為 80 萬美元，一年前為 310 萬美元。第一季度資本支出主要用於我們 IC 設計業務的研發相關設備。

As of March 31, 2021, Himax had 174.3 million ADS outstanding, little changed from last quarter. On a fully diluted basis, the total number of ADS outstanding was 174.7 million.

截至 2021 年 3 月 31 日，Himax 的 ADS 流通量為 1.743 億，與上一季度相比變化不大。在完全攤薄的基礎上，流通在外的 ADS 總數為 1.747 億股。

Q2 2021 Guidance

2021 年第二季度指南

Now turning to our second quarter 2021 guidance. For the second quarter, we expect further revenue growth from the already high level of Q1 2021 in most of our business sectors. Gross margin shall see another uptick and could reach another quarterly high.

現在轉向我們的 2021 年第二季度指南。對於第二季度，我們預計我們大部分業務部門的收入將在 2021 年第一季度的高水平基礎上進一步增長。毛利率將再次上升，並可能再創季度新高。

For the second quarter, we expect revenues to increase by 15% to 20% sequentially. Gross margin is expected to be 45.5% to 47.5%, depending on the final product mix.

對於第二季度，我們預計收入將環比增長 15% 至 20%。毛利率預計為 45.5% 至 47.5%，具體取決於最終產品組合。

With the increase of both revenue and margin, net profit shall increase substantially in second quarter. IFRS profit attributable to shareholders is expected to be in the range of 54.0 to 60.0 cents per fully diluted ADS. Non-IFRS profit attributable to shareholders is expected to be in the range of 54.2 to 60.2 cents per fully diluted ADS.

隨著收入和利潤率的雙雙增長，二季度淨利潤將大幅增長。 IFRS 股東應占利潤預計在每份完全稀釋的 ADS 54.0 至 60.0 美分之間。非 IFRS 股東應占利潤預計在每份完全稀釋的 ADS 54.2 至 60.2 美分之間。

I will now turn the call over to Jordan. Jordan, the floor is yours.

我現在將電話轉給喬丹。喬丹，地板是你的。

Q2 2021 Outlook

2021 年第二季度展望

Thank you, Eric. We are still seeing a serious supply-demand imbalance where demand far outpaces supply despite foundries running at more than 100% capacity. Accompanying the rapid growth of 5G and high-performance computing, there's a noticeable increase in demand for semiconductor for advanced processes. The trend towards an ever more connected digital world also drives higher needs for mature nodes, notably demands from display driver IC, power management IC, CMOS image sensor, automotive industry and various AIoT devices that are already all around us and still increasing rapidly in number. Adding these all up, what we have is a structural shift in demand and supply dynamics, especially for the mature nodes, which have lacked meaningful capacity expansion for many years.

謝謝你，埃里克。我們仍然看到嚴重的供需失衡，儘管代工廠的產能超過 100%，但需求遠遠超過供應。隨著 5G 和高性能計算的快速發展，先進工藝對半導體的需求顯著增加。數字世界日益互聯的趨勢也推動了對成熟節點的更高需求，尤其是來自顯示驅動器 IC、電源管理 IC、CMOS 圖像傳感器、汽車行業和各種 AIoT 設備的需求，這些設備已經無處不在，並且數量仍在快速增長.將所有這些加起來，我們所擁有的是需求和供應動態的結構性轉變，特別是對於多年來缺乏有意義的容量擴展的成熟節點。

As I mentioned on our last earnings call, we have managed to secure more capacity for this year compared to last year, with accessible capacity expected to grow quarter-by-quarter during 2021. Looking further ahead, we are taking measures to work with our strategic foundry partners to further enlarge our long-term capacity pool. We'll give more details as they come about.

正如我在上次財報電話會議上提到的那樣，與去年相比，我們今年已經設法確保了更多的產能，預計 2021 年可用產能將逐季度增長。展望未來，我們正在採取措施與我們的合作戰略代工合作夥伴，以進一步擴大我們的長期產能池。我們會在它們出現時提供更多細節。

Separately, taking advantage of the current favorable environment, we are also making efforts to reposition ourselves towards higher-end and higher value-added products by working more directly and closely with select leading end customers. We have made tremendous progress across various industries that we serve. For large display areas, we are pleased with the results so far in switching our focus more towards high-resolution TV, high-performance monitor and low-power notebook. For smartphone, wearable and tablet, we are gearing up for the AMOLED driver IC development in partnership with strategic customers and foundry providers. For automotive market where we are already the leader in display driver IC, we are deepening our working relationships with Tier 1 players and end customers across all major markets.

另外，利用當前有利的環境，我們也正努力通過與精選的領先終端客戶更直接、更緊密地合作，重新定位於更高端、更高附加值的產品。我們在所服務的各個行業都取得了巨大進步。對於大型顯示區域，我們對迄今為止將重點更多地轉向高分辨率電視、高性能顯示器和低功耗筆記本電腦的結果感到滿意。對於智能手機、可穿戴設備和平板電腦，我們正與戰略客戶和晶圓代工供應商合作開發 AMOLED 驅動 IC。對於我們已經是顯示驅動器 IC 領導者的汽車市場，我們正在加深與所有主要市場的一級供應商和最終客戶的合作關係。

Last but not least, in our non-driver areas, we are pushing hard for the promotion of WiseEye ultralow power AI sensing solution, which have been -- which have seen a widespread adoption for numerous AIoT applications. Our 3D decoder IC is also already ramping in volume. I will elaborate on this in a few minutes.

最後但並非最不重要的一點是，在我們的非驅動領域，我們正在努力推廣 WiseEye 超低功耗 AI 傳感解決方案，該解決方案已經被廣泛應用於眾多 AIoT 應用程序。我們的 3D 解碼器 IC 也已經量產。我將在幾分鐘內對此進行詳細說明。

Display Driver IC Businesses

顯示驅動IC業務

LDDIC

低密度迪克

Now let us start with an update on the large panel driver IC business. For the second quarter, we expect large display driver IC revenue to increase by around 20% sequentially, with the 3 major product lines all set for further growth. We expect decent increase in both monitor and notebook IC sales in Q2, thanks to persisting work-from-home and learn-from-home demands. For the TV IC segment, we anticipate an impressive quarterly growth in Q2, mainly due to shipments of high-end TV products going into a world-leading end customer, an illustration of the strategy towards high-end products and leading end customers that I just mentioned. Nevertheless, our shipping quantity is constrained by capacity shortage for the large panel display driver IC business during the second quarter.

現在讓我們從大面板驅動IC業務的最新情況開始。對於第二季度，我們預計大型顯示驅動 IC 收入將環比增長 20% 左右，三大產品線都將進一步增長。由於持續的在家工作和在家學習的需求，我們預計第二季度顯示器和筆記本電腦 IC 的銷售額將有可觀的增長。對於電視 IC 部分，我們預計第二季度將出現令人印象深刻的季度增長，這主要是由於高端電視產品的出貨量進入了世界領先的終端客戶，這說明了我對高端產品和領先終端客戶的戰略剛剛提到。然而，我們的出貨量受到第二季度大型面板顯示驅動器 IC 業務產能短缺的限制。

Recently, we saw strong customer demand for high-end monitors unfolding post pandemic. When people work, study and play games at home, which they do much more than before, they are demanding higher resolution, higher frame rate, ultrawide aspect, curved view and even multiple monitors sometimes. Himax continues to lead the high-end monitor market by providing advanced driver ICs and Tcons in partnership with leading panel makers and end customers.

最近，我們看到大流行後客戶對高端顯示器的強烈需求。當人們在家工作、學習和玩遊戲時，他們比以前做的更多，他們要求更高的分辨率、更高的幀率、超寬屏幕、曲面視圖，有時甚至需要多台顯示器。 Himax 通過與領先的面板製造商和終端客戶合作提供先進的驅動器 IC 和 Tcon，繼續引領高端顯示器市場。

SMDDIC

貼片驅動芯片

Now let's turn to the small and medium-sized display driver IC business. In the second quarter, we see continuous strong demand for all 3 segments, namely smartphone, tablet and automotive. Again, we are unable to meet all customer demands due to tight foundry capacity. As the leading supplier for the Android tablet market, we are strategically allocating capacity in favor of tablet over smartphone to support the needs for home working and remote learning. For the second quarter, we expect tablet sales to grow by mid-teens and smartphone sales to be flattish compared to the previous quarter, reflecting our capacity allocation decision. With enlarged capacity as we indicated in the last earnings call, automotive driver IC business is expected to grow by more than 20%, the highest among the 3 segments in the small and medium-sized driver IC business.

再來說說中小尺寸顯示驅動IC業務。在第二季度，我們看到智能手機、平板電腦和汽車這三個領域的需求持續強勁。同樣，由於代工產能緊張，我們無法滿足所有客戶的需求。作為 Android 平板電腦市場的領先供應商，我們正在戰略性地分配容量以支持平板電腦而非智能手機，以支持家庭工作和遠程學習的需求。對於第二季度，我們預計平板電腦銷量將增長 15%，而智能手機銷量與上一季度相比持平，這反映了我們的產能分配決策。我們在上次財報電話會議上表示，隨著產能的擴大，車用驅動IC業務有望增長20%以上，是中小尺寸驅動IC業務三大板塊中最高的。

Tablet, already among our top sales contributors since 2020, continues to grow with accelerated TDDI penetration among leading Android names as well as strong demand driven by the stay-at-home economy. For the second quarter, we expect tablet TDDI sales to grow by more than 20% as our tablet customers are accelerating adoption of TDDI. TDDI for high-end tablet enjoys particularly good momentum as people crave for more advanced features such as higher frame rate, higher resolution, larger screen size and active stylus for better-quality handwriting and drawing. All these trends benefit us for higher ASP and growing market share. Again, tablet TDDI enjoys better margin, and its rapid growth helps enhance our overall gross margin. Finally, for tablet product, revenue of traditional DDIC is expected to remain flat sequentially during the second quarter.

平板電腦自 2020 年以來一直是我們最大的銷售貢獻者之一，隨著 TDDI 在領先的 Android 品牌中的加速滲透以及居家經濟推動的強勁需求，平板電腦繼續增長。對於第二季度，我們預計平板電腦 TDDI 銷售額將增長 20% 以上，因為我們的平板電腦客戶正在加速採用 TDDI。高端平板電腦的 TDDI 發展勢頭尤為強勁，因為人們渴望獲得更高級的功能，例如更高的幀速率、更高分辨率、更大的屏幕尺寸和有源手寫筆，以實現更好的手寫和繪圖質量。所有這些趨勢都使我們受益於更高的平均售價和不斷增長的市場份額。同樣，平板電腦 TDDI 享有更好的利潤率，其快速增長有助於提高我們的整體毛利率。最後，對於平板產品，傳統DDIC的收入預計在第二季度將保持環比持平。

Next a quick update on smartphone products, while customers are demanding more shipments, limited by severe capacity constraints, our smartphone TDDI sales are expected to be flat from last quarter. Discrete drivers for smartphone, running at relatively low volume, are expected to grow strongly with seasonal demand for the second quarter. As we have mentioned, DDIC of both smartphone and tablet are in a downward trend as they are being replaced by TDDI.

接下來是智能手機產品的快速更新，雖然客戶要求更多的出貨量，但受限於嚴重的產能限制，我們的智能手機 TDDI 銷量預計與上一季度持平。智能手機的離散驅動器，運行量相對較低，預計將隨著第二季度的季節性需求而強勁增長。正如我們所提到的，智能手機和平板電腦的 DDIC 都處於下降趨勢，因為它們正在被 TDDI 取代。

Turning to the automotive sector. It's been well reported that the automotive industry worldwide has recovered strongly and abruptly from its earlier slump starting later last year but also suffered from severe shortage of semiconductor supply. We have been experiencing the same for the display driver ICs we provide for automotive applications where we command a world-leading market share of well more than 30%. As the ongoing capacity shortage continues to intensify, panel makers, Tier 1 suppliers and end customers seek out Himax for more supply of automotive display driver ICs. Having foreseen the growing automotive display demand and the capacity shortage, we engaged early and have secured a meaningful increase in capacity for this year and longer term. We expect the Q2 sales into automotive industry to grow more than 20% sequentially, which would represent more than 100% growth year-over-year. Notwithstanding the impressive growth, the demand still far outpaces the foundry capacity accessible to us.

轉向汽車領域。據報導，全球汽車行業已從去年晚些時候開始的早期低迷中強勁而突然地複蘇，但也受到半導體供應嚴重短缺的影響。我們為汽車應用提供的顯示驅動器 IC 也經歷過同樣的情況，我們在這些應用中佔據了世界領先的市場份額，超過 30%。隨著持續的產能短缺持續加劇，面板製造商、一級供應商和終端客戶尋求 Himax 以獲得更多的汽車顯示驅動器 IC 供應。預見到不斷增長的汽車顯示器需求和產能短缺，我們及早參與並確保了今年和更長期的產能顯著增加。我們預計第二季度汽車行業的銷售額將環比增長 20% 以上，同比增長超過 100%。儘管增長令人印象深刻，但需求仍然遠遠超過我們可獲得的代工產能。

Along with the fast-growing electric vehicles and autonomous driving that is deemed to be the next big thing, car interior is catering to better human vehicle interaction with ever more stylish designs, made possible with increasing number of panels equipped with advanced display technologies such as TDDI and local dimming. As the market leader in automotive display driver business, we are leading the charge in answering to such demands. For instance, we dominate the design-in and design-win of automotive TDDI with direct and indirect customers across the continents for a technology that is essential for very large-sized, stylish and free-formed automotive displays.

隨著電動汽車的快速發展和被認為是下一件大事的自動駕駛，汽車內飾正以越來越時尚的設計迎合更好的人車互動，越來越多的面板配備了先進的顯示技術，例如TDDI 和局部調光。作為汽車顯示驅動器業務的市場領導者，我們在滿足此類需求方面處於領先地位。例如，我們主導汽車 TDDI 的設計導入和設計贏取，直接和間接客戶遍及各大洲，因為這項技術對於超大尺寸、時尚和自由成型的汽車顯示器至關重要。

We are also leading in the up-and-coming local dimming technology, which not only provides effective power saving, critical for EVs, but also enhances display contrast for better viewing under bright daylight. In addition, our high-speed point-to-point bridge and LTDI solutions are specially designed for very large panels up to a pillar-to-pillar display size. With these new demands unleashed for advanced display technologies, we expect exponential sales growth of automotive sector in the years to come.

我們還在新興的局部調光技術方面處於領先地位，該技術不僅提供了對電動汽車至關重要的有效節能，而且還增強了顯示對比度，以便在明亮的日光下獲得更好的觀看效果。此外，我們的高速點對點橋接和 LTDI 解決方案專為最大至柱對柱顯示尺寸的超大面板而設計。隨著對先進顯示技術的這些新需求的釋放，我們預計未來幾年汽車行業的銷售額將呈指數級增長。

Next, an update on AMOLED. As AMOLED offers better display quality, lower power consumption and plastic free form design, the technology has gained traction in the high-end market. As stated before, Himax is highly committed to AMOLED technology where our development started from smartphone and has extended to wearable, tablet and automotive. In March, we teamed up with BOE Varitronix, or BOEVx, a world-leading supplier of automotive display products, and succeeded in securing an AMOLED display design-win with a leading EV maker for its upcoming flagship model. Armed with Himax AMOLED driver IC and timing controller solution, Himax and BOEVx partnered to offer flexible AMOLED automotive display, firstly, over a 12.8-inch Center Information Display product. Small volume shipment is anticipated starting in the fourth quarter of 2021.

接下來是關於 AMOLED 的更新。由於 AMOLED 提供更好的顯示質量、更低的功耗和無塑料形狀設計，該技術在高端市場獲得了吸引力。如前所述，奇景光電高度致力於AMOLED技術，我們的發展從智能手機開始，並擴展到可穿戴設備、平板電腦和汽車。今年 3 月，我們與世界領先的汽車顯示產品供應商京東方精電 (BOE Varitronix，簡稱 BOEVx) 合作，成功為其即將推出的旗艦車型贏得一家領先電動汽車製造商的 AMOLED 顯示屏設計。借助奇景光電 AMOLED 驅動 IC 和時序控制器解決方案，奇景光電與 BOEVx 合作提供柔性 AMOLED 汽車顯示器，首先是 12.8 英寸的中央信息顯示產品。預計從 2021 年第四季度開始小批量出貨。

For other AMOLED applications, we are continuing our development efforts by proactively working with leading Chinese panel makers and strategic foundry partners. We will report further progress in due course. We believe AMOLED driver IC will soon become one of the major growth drivers for our small and medium-sized panel driver IC business.

對於其他 AMOLED 應用，我們通過積極與中國領先的面板製造商和戰略代工合作夥伴合作，繼續我們的開發工作。我們將適時報告進一步的進展。我們相信 AMOLED 驅動 IC 將很快成為我們中小尺寸面板驅動 IC 業務的主要增長動力之一。

For the second quarter, revenue for the small and medium-sized driver IC business is expected to increase by low teens sequentially, with demand much higher than supply. Capacity shortage is expected to continue across all business segments in this area.

第二季度，中小型驅動IC業務收入預計環比小幅增長，供不應求。產能短缺預計將在該領域的所有業務部門繼續存在。

Non-Driver Product Categories

非驅動程序產品類別

Now let me share some of the progress we made on the non-driver IC businesses in the last quarter.

現在讓我分享一下上個季度我們在非驅動IC業務上取得的一些進展。

TCON

天控

First on timing controller. For the second quarter, we expect Tcon sales to increase more than 60% sequentially as we successfully acquired more capacity for both foundry and back end. Backed by several recent major Tcon design-wins from leading end customers for gaming monitor, low power notebook and 8K/4K TVs, our Tcon product line is on track for further growth. It is worth mentioning that we have a dominant global market share for 8K TV Tcon with adoption from literally all major TV brands. With better ASP and margin than those of display drivers, Tcon is expected to be an extensive long-term growth area and contribute more to the top and bottom line growth going forward. Similar to all display driver IC businesses, our Tcon volume is already capped by capacity shortage, both from foundry and back-end packaging.

首先是時序控制器。對於第二季度，我們預計 Tcon 銷售額將連續增長 60% 以上，因為我們成功地獲得了代工和後端的更多產能。在最近幾項主要的 Tcon 設計贏得遊戲顯示器、低功耗筆記本電腦和 8K/4K 電視等領先終端客戶的支持下，我們的 Tcon 產品線有望進一步發展。值得一提的是，我們在 8K TV Tcon 的全球市場份額中佔據主導地位，幾乎所有主要電視品牌都採用了它。憑藉比顯示驅動器更好的平均售價和利潤率，Tcon 有望成為一個廣泛的長期增長領域，並為未來的收入和利潤增長做出更大貢獻。與所有顯示驅動器 IC 業務類似，我們的 Tcon 數量已經受到代工和後端封裝產能短缺的限制。

WLO

世界勞工組織

Next is a quick update on WLO. WLO revenue increased substantially in the first quarter, thanks to resumed orders from an anchor customer for its legacy products. In the second quarter of 2021, WLO sales are expected to remain flat quarter-over-quarter, which will help sustain WLO factory utilization.

接下來是 WLO 的快速更新。 WLO 收入在第一季度大幅增長，這要歸功於其遺留產品的主要客戶恢復了訂單。 2021 年第二季度，WLO 銷售額預計環比持平，這將有助於維持 WLO 工廠利用率。

Meanwhile, we continue to collaborate with key customers and partners for new applications such as ToF 3D sensing, AR/VR gadgets, biomedical devices and others, targeting their future generation products.

同時，我們繼續與主要客戶和合作夥伴合作開發新應用，例如 ToF 3D 傳感、AR/VR 小工具、生物醫學設備等，以他們的下一代產品為目標。

Himax is a pioneer in high-precision diffraction optics technology with 15 years of experience under our belt, having worked on very different designs over a variety of applications with some of the world's most heavyweight tech names. The diffractive optical element, or DOE, enables the manipulation of phase, shape, direction and even power of incident laser light for the output of specific, pre-designed optical pattern and functions that are not feasible in standard refractive optics.

Himax 是高精度衍射光學技術的先驅，擁有 15 年的經驗，曾與一些世界上最重量級的技術品牌合作，在各種應用中進行非常不同的設計。衍射光學元件或 DOE 能夠控制入射激光的相位、形狀、方向甚至功率，以輸出特定的、預先設計的光學圖案和功能，這在標準折射光學中是不可行的。

The diffraction optics technology is now well adopted in 3D sensing, AR/VR devices, holographic display, biomedical inspection, optical communication, et cetera. We are seeing DOE plays an even more decisive role for the next-generation optical technology in light of its high-precision and lightweight characteristics.

衍射光學技術現已廣泛應用於3D傳感、AR/VR設備、全息顯示、生物醫學檢測、光通信等領域。我們看到 DOE 以其高精度和輕量化的特性在下一代光學技術中發揮著更加決定性的作用。

In addition to WLO that is suitable for small electronic devices such as wearable and portable products, we have extended our reach in diffraction optics technology to cover large-sized applications. In October 2020, we made a strategic cash investment and became the controlling shareholder of CM Visual Technology Corp., or CMVT, which is specialized in microstructure optical film design and manufacturing and is a world leader in its area. CMVT offers proprietary microstructure optical design expertise, nano-scale mold engraving capability as well as roll-to-roll nanoimprinting manufacturing capacity. CMVT's roller type nanoimprinting can support the production of large-sized film with superior production efficiency at competitive costs. This is a complementary technology to our WLO technology and by having both teams work together, we can now deliver cutting-edge solutions for different applications covering all sizes of optics.

除了適用於可穿戴和便攜式產品等小型電子設備的 WLO 之外，我們還擴展了衍射光學技術的範圍，以涵蓋大型應用。 2020年10月，我們進行戰略現金投資，成為專業從事微結構光學薄膜設計和製造的全球領先的CM Visual Technology Corp.（簡稱CMVT）的控股股東。 CMVT 提供專有的微結構光學設計專業知識、納米級模具雕刻能力以及卷對卷納米壓印製造能力。 CMVT 的輥式納米壓印可以以具有競爭力的成本以卓越的生產效率支持大尺寸薄膜的生產。這是對我們的 WLO 技術的補充技術，通過讓兩個團隊一起工作，我們現在可以為涵蓋所有尺寸光學器件的不同應用提供尖端解決方案。

Omniwide Film, which is CMVT's microstructure optical film, is the best answer to various types of optical challenges such as gray level inversion, color washout and light leakage under oblique viewing angles for better visual experience. The Omniwide Film solution can support different types of display, including TN, VA, IPS types of TFT-LCD displays and AMOLED display. These solutions are all available to the market right now.

Omniwide Film是CMVT的微結構光學薄膜，是解決傾斜視角下灰度反轉、色偏、漏光等各類光學挑戰的最佳解決方案，帶來更好的視覺體驗。 Omniwide Film解決方案可以支持不同類型的顯示器，包括TN、VA、IPS類型的TFT-LCD顯示器和AMOLED顯示器。這些解決方案現在都已上市。

3D Sensing

3D感測

Next on 3D sensing update for our non-smartphone segment. As reported in previous earnings call, our proprietary 3D decoder IC provides superior 3D depth map decoding for best-in-class secure face recognition and has been widely adopted by leading Chinese customers for e-payment device. We started volume shipments of the 3D decoder in the fourth quarter of 2020 and expect continuous growth in 2021.

接下來是我們非智能手機領域的 3D 傳感更新。正如在之前的財報電話會議上報導的那樣，我們專有的 3D 解碼器 IC 提供卓越的 3D 深度圖解碼以實現一流的安全人臉識別，並已被中國領先的電子支付設備客戶廣泛採用。我們在 2020 年第四季度開始批量出貨 3D 解碼器，預計 2021 年將持續增長。

Ultralow power smart sensing

超低功耗智能傳感

Now switching gears to the WiseEye smart sensing solution. To maximize market visibility and explore potential applications, we continue to push forward with 2 WiseEye business models, namely total solution and discrete component.

現在切換到 WiseEye 智能傳感解決方案。為了最大化市場知名度和探索潛在應用，我們繼續推進 2 WiseEye 業務模型，即整體解決方案和分立組件。

For the WiseEye total solution model where we are the owner of the solution, we integrate our proprietary AI processor and CMOS image sensor, both with an outstanding ultralow power characteristic with AI algorithms from multiple third-party software partners. These algorithm partners, which include our subsidiary Emza, come from different countries and many have special domain know-how catering for the needs of specific markets.

對於我們作為解決方案所有者的 WiseEye 整體解決方案模型，我們集成了我們專有的 AI 處理器和 CMOS 圖像傳感器，兩者都具有出色的超低功耗特性，以及來自多個第三方軟件合作夥伴的 AI 算法。這些算法合作夥伴，包括我們的子公司 Emza，來自不同的國家，許多擁有滿足特定市場需求的特殊領域知識。

We mentioned notebook, TV and air conditioner in the last earnings call as early examples of our total solution approach. I am pleased to report that recently, we were officially awarded a sizable purchase order from a top-tier household name for a mainstream application with mass production scheduled to commence at the fourth quarter of this year. This early success marked a major milestone for our WiseEye product line, which we believe will be a major growth engine for our business for many years.

我們在上次財報電話會議中提到了筆記本電腦、電視和空調作為我們整體解決方案方法的早期示例。我很高興地報告，最近，我們正式獲得了一家頂級家喻戶曉的主流應用的大筆採購訂單，計劃於今年第四季度開始量產。這一早期成功標誌著我們 WiseEye 產品線的一個重要里程碑，我們相信它將成為我們業務多年的主要增長引擎。

We are also encouraged by the progress of customer engagements for the new applications we launched, covering automotive, panoramic videoconferencing, utilities meter, QR code reader, doorbell and door lock. All these applications offer always-on and/or ultralow power AI visual sensing that are made possible by our WiseEye technology. The list of applications for our WiseEye total solution will continue to expand as we continue to reach out to key players in various industries who are working closely with our algorithm partners.

我們還對客戶參與我們推出的新應用程序的進展感到鼓舞，這些應用程序涵蓋汽車、全景視頻會議、公用事業儀表、二維碼閱讀器、門鈴和門鎖。所有這些應用程序都提供始終在線和/或超低功耗的 AI 視覺傳感，而我們的 WiseEye 技術使這些成為可能。隨著我們繼續接觸與我們的算法合作夥伴密切合作的各個行業的主要參與者，我們的 WiseEye 整體解決方案的應用程序列表將繼續擴展。

For the key component business model where we offer AI processor and/or always-on CMOS image sensors but without AI algorithm, we continue to collaborate with global AI and cloud service partners by proactively participating in their ecosystems and infrastructures. Following the successful adoption of our WE-I Plus AI processor in the Google TensorFlow Lite for Microcontrollers framework in March 2021, our WE-I Plus AIoT platform was endorsed by Microsoft and was awarded the Azure IoT PnP certificate.

對於我們提供 AI 處理器和/或始終在線的 CMOS 圖像傳感器但沒有 AI 算法的關鍵組件業務模型，我們通過積極參與他們的生態系統和基礎設施，繼續與全球 AI 和雲服務合作夥伴合作。繼我們的 WE-I Plus AI 處理器於 2021 年 3 月在用於微控制器的 Google TensorFlow Lite 框架中成功採用後，我們的 WE-I Plus AIoT 平台獲得了微軟的認可，並獲得了 Azure IoT PnP 證書。

Our WE-I Plus AIoT platform brings reliable, secure and long battery life edge AI to the IoT connected cloud market. WE-I Plus AIoT platform can conduct person, face or object detection computer vision functions and then output only secured metadata over NB-IoT protocol to the Azure IoT cloud for further statistical data processing and analysis. In most cases, the WE-I Plus AIoT platform can operate with just 4 AA batteries for more than 1 year lifetime. WE-I Plus is the best ultralow power battery powered edge AIoT platform solution in the Azure IoT, which targets ever-growing cloud service markets in smart buildings, manufacturing, retail, agriculture, et cetera. Implementing AI everywhere is made possible with our WE-I Plus.

我們的 WE-I Plus AIoT 平台為物聯網連接的雲市場帶來了可靠、安全和長電池壽命的邊緣人工智能。 WE-I Plus AIoT平台可以進行人臉或物體檢測計算機視覺功能，然後通過NB-IoT協議僅將安全元數據輸出到Azure IoT雲端，以進行進一步的統計數據處理和分析。在大多數情況下，WE-I Plus AIoT 平台僅需 4 節 AA 電池即可運行超過 1 年的使用壽命。 WE-I Plus 是 Azure IoT 中最好的超低功耗電池供電的邊緣 AIoT 平台解決方案，其目標是智能建築、製造、零售、農業等領域不斷增長的雲服務市場。我們的 WE-I Plus 使在任何地方實施人工智能成為可能。

In the meantime, we continued to showcase our WE-I Plus-enabled systems jointly with our ecosystem partners such as SparkFun and Edge Impulse in various webinar and marketing events to illustrate more AI use cases. People from different industries and countries approached us and applied our solutions to many applications that never occurred to us before. We are encouraged by the enthusiastic market feedback, along with streams of end customers' inquiries. In return, we provide AI developers with comprehensive supporting service, where they can easily access open source codes from Google TensorFlow Lite For Microcontrollers framework, WE-I Plus EVK and sensor accessories from SparkFun and development tools from Edge Impulse. We are delighted to bridge AI developers over the hurdles they encounter in developing their AI solutions and move with AI developers together towards an upcoming edge AI decade.

與此同時，我們繼續在各種網絡研討會和營銷活動中與我們的生態系統合作夥伴（如 SparkFun 和 Edge Impulse）聯合展示我們支持 WE-I Plus 的系統，以展示更多人工智能用例。來自不同行業和國家的人們找到我們並將我們的解決方案應用到我們以前從未想過的許多應用中。我們對熱情的市場反饋以及終端客戶的諮詢流感到鼓舞。作為回報，我們為 AI 開發人員提供全面的支持服務，他們可以輕鬆訪問來自 Google TensorFlow Lite For Microcontrollers 框架的開源代碼、來自 SparkFun 的 WE-I Plus EVK 和傳感器配件以及來自 Edge Impulse 的開發工具。我們很高興幫助 AI 開發人員克服他們在開發 AI 解決方案時遇到的障礙，並與 AI 開發人員一起邁向即將到來的邊緣 AI 十年。

CMOS Image Sensor

CMOS圖像傳感器

Now turning to our CMOS image sensor business update. In the second quarter, the CIS revenue is expected to be flattish sequentially. Our shipment has been badly capped by the foundry capacity available to us despite surging customer demand for CMOS image sensors for web camera and notebooks. Nevertheless, we expect a decent growth in the second half of 2021, thanks to a major engagement from a major existing customer.

現在轉向我們的 CMOS 圖像傳感器業務更新。第二季度，CIS 收入預計環比持平。儘管客戶對用於網絡攝像頭和筆記本電腦的 CMOS 圖像傳感器的需求激增，但我們的出貨量嚴重受到可用代工廠產能的限制。儘管如此，由於主要現有客戶的大力參與，我們預計 2021 年下半年將實現可觀的增長。

Our industry first 2-in-1 CMOS image sensor supporting videoconferencing and AI facial recognition on ultralow power has been designed into some of the most stylish slim bezel notebook models of certain major notebook names. Small volume production has started in the fourth quarter of last year. Meaningful ramp-up volume is expected for the upcoming quarters.

我們業界首款支持視頻會議和超低功耗 AI 面部識別的二合一 CMOS 圖像傳感器已被設計到某些主要筆記本品牌的一些最時尚的窄邊框筆記本型號中。去年第四季度開始了小批量生產。預計未來幾個季度將出現有意義的增長。

Regarding our ultralow power always-on CMOS image sensor that targets always-on AI applications, we are getting growing feedback and design adoptions from customers globally for various markets such as car recorders, surveillance, smart electric meters, drones, smart home applications and consumer electronics. We'll report progress in due course.

關於我們面向始終在線 AI 應用的超低功耗始終在線 CMOS 圖像傳感器，我們正在從全球客戶那裡獲得越來越多的反饋和設計採用，適用於各種市場，例如汽車記錄儀、監控、智能電錶、無人機、智能家居應用和消費者電子產品。我們會及時報告進展情況。

LCoS

LCoS

Last on the update of LCoS microdisplay. In the first quarter of 2021, our proprietary front-lit LCoS microdisplay, an integrated solution covering LCoS microdisplay, lightguide and front-lit LED, had a successful design-win with a world-leading player for a rugged headset for industrial working environment. It is an assisted-reality type hand-free head-mounted device where our front-lit LCoS microdisplay module provides a 7-inch display view below line of sight to assist workers to access real-time working information. Our front-lit LCoS microdisplay demonstrated a perfect match with the customers' application in compact form factor, low power consumption and higher brightness. We are collaborating closely with the customer for the strict industrial level qualification and expect substantial volume shipment starting from the third quarter of this year.

最後是 LCoS 微顯示器的更新。在 2021 年第一季度，我們專有的前照式 LCoS 微顯示器（一種涵蓋 LCoS 微顯示器、光導和前照式 LED 的集成解決方案）與世界領先的工業工作環境堅固耳機廠商成功設計。它是一種輔助現實型免提頭戴式設備，我們的前照式 LCoS 微顯示模塊在視線下方提供 7 英寸顯示視圖，以幫助工作人員訪問實時工作信息。我們的前照式 LCoS 微顯示器以緊湊的外形、低功耗和更高的亮度展示了與客戶應用的完美匹配。我們正在與客戶密切合作，以獲得嚴格的工業級資質，並預計從今年第三季度開始大量出貨。

For non-driver IC business, we expect revenue to increase around 40% sequentially in the second quarter.

對於非驅動 IC 業務，我們預計第二季度收入將環比增長 40% 左右。

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

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

(Operator Instructions) And our first question comes from the line of Tristan Gerra from Baird.

（操作員說明）我們的第一個問題來自 Baird 的 Tristan Gerra。

Could you quantify the price increases that you've been able to implement so far maybe on a year-over-year basis? And you expect to raise pricing further? Or do you think you're set basically with earlier year price changes?

您能否量化您迄今為止能夠實施的價格上漲，也許是在同比基礎上？您希望進一步提高價格嗎？還是您認為您基本上已經接受了早些年的價格變化？

It's a simple question. And yes, if I have to answer it like with good confidence, then I think it's a tricky question because across different applications, the price increase, especially you're asking about year-over-year actually varies by a lot. So I am afraid, I probably have to revert back to you after this about this question.

這是一個簡單的問題。是的，如果我必須充滿信心地回答這個問題，那麼我認為這是一個棘手的問題，因為在不同的應用程序中，價格上漲，尤其是你問的同比價格實際上相差很大。所以我擔心，關於這個問題，我可能不得不在這之後回复你。

But on your second part of the question, whether we think there will be further price increases from here, I think the answer is most likely yes. On the supply side, the foundry and even the back end, I think our costs still continue to be on its way up. So I think we certainly do have to transfer the cost to our customers. And I think the reception for such proposed price increases from our customer has been okay in a sense that customers right now, actually, they are hoping for more delivery. And as long as we can make the delivery, price can always be discussed. So I think at least for the foreseeable future, we have good confidence that we should be able to transfer our costs to the customers. And the fact is that costs, I think for Q3, will still be rising from somewhat from Q2.

但關於問題的第二部分，我們是否認為價格會進一步上漲，我認為答案很可能是肯定的。在供應方面，鑄造廠甚至後端，我認為我們的成本仍在繼續上升。所以我認為我們當然必須將成本轉移給我們的客戶。而且我認為，從某種意義上說，我們的客戶對此類提價提議的接受程度還不錯，因為客戶現在實際上希望獲得更多交貨。只要我們能交貨，價格總是可以討論的。所以我認為至少在可預見的未來，我們有足夠的信心將我們的成本轉移給客戶。事實上，我認為第三季度的成本仍將比第二季度有所上升。

Great. That's very useful. And then the microdisplay -- LCoS microdisplay design-win that you've mentioned, are you expanding your customer base from the traction you had back from a few years ago? Or is that a renewed program at an existing customer?

偉大的。這非常有用。然後是微顯示器——你提到的 LCoS 微顯示器設計勝利，你是否正在從幾年前的牽引力中擴大你的客戶群？還是現有客戶的更新計劃？

No. It's more of a new customer. It's the world's leading customer in this area, and it's pure industrial and business application. And we talked about in our prepared remarks is kind of designed for a very rugged robust kind of device to be used in a harsh environment. So it's a new program. We are pleased that our technology fits their needs very well, and this will be a pretty sizable volume of this kind in this market, I mean, head-mounted device.

不，它更像是一個新客戶。它是該領域的全球領先客戶，並且是純工業和商業應用。我們在準備好的評論中談到了一種設計用於在惡劣環境中使用的非常堅固耐用的設備。所以這是一個新計劃。我們很高興我們的技術能很好地滿足他們的需求，這在這個市場上將是一個相當大的市場，我的意思是，頭戴式設備。

And our next question comes from the line of Jerry Su of Crédit Suisse.

我們的下一個問題來自瑞士信貸銀行的 Jerry Su。

I think my first question is regarding the guidance for the second quarter. I think you guided a large size driver IC to grow 20% and then overall smartphone is growing at about low teens sequentially. So can you quantify how much is coming from unit shipment growth? And how should we think about your capacity in the second half of the year and also 2022?

我想我的第一個問題是關於第二季度的指導。我認為你引導大尺寸驅動器 IC 增長了 20%，然後整體智能手機的增長速度大約為十幾歲。那麼您能否量化單位出貨量增長帶來的影響？我們應該如何考慮您在下半年和 2022 年的產能？

I will be a little bit reluctant to give you a simple and straight answer because we discussed earlier, we are limited by capacity. So we have to allocate our products in 2 areas that we think are most needed by the customer for Himax to supply and also represent a favorable product mix for us. So we are actually shipping more towards higher-end higher price customers, with some of those customers are very receptive to higher prices. So I think to give you an exact quantity, percentage increase versus revenue percentage increase, I think it could be misleading in the sense that actually, the product mix is different, and we are more towards higher-end products and to where the customers' demands are most needed, and therefore, we can, in some cases, charge higher for those customers. So we are only now prepared to disclose revenue increase rather than quantity because that could be rather misleading -- quantity could be rather misleading.

我有點不願意給你一個簡單直接的答案，因為我們之前討論過，我們受到能力的限制。因此，我們必須將我們的產品分配在我們認為客戶最需要 Himax 供應的兩個領域，這也代表了對我們有利的產品組合。所以我們實際上更多地向高端更高價格的客戶發貨，其中一些客戶非常願意接受更高的價格。所以我想給你一個確切的數量，增長百分比與收入增長百分比，我認為這可能會產生誤導，因為實際上，產品組合是不同的，我們更傾向於高端產品和客戶所在的地方需求是最需要的，因此，在某些情況下，我們可以對這些客戶收取更高的費用。所以我們現在才准備披露收入增長而不是數量，因為這可能會產生誤導——數量可能會產生誤導。

Okay. And then how about your planning for the capacity in second half and also next year?

好的。那麼您對下半年和明年的產能規劃如何？

Capacity increase for second half or even into next year will only be marginal because, guess what, there is simply no major addition of capacity around in the industry. So we are happy that we'll be able to keep the capacity already available to us. And also, there will be some marginal increases here and there from even different foundry suppliers. But overall, I would say it will only be marginal increase until we see, like, more structural addition of foundry capacity from cases where actually foundry partners are building new fabs. And in fact, there will be such additional foundry capacity, meaning building construction of new fabs. But if you take that into our already available foundry capacity pool, it will only still be kind of a marginal increase only.

下半年甚至明年的產能增長都將是微不足道的，因為你猜怎麼著，這個行業根本沒有大量的產能增加。因此，我們很高興能夠保持我們已經可用的容量。而且，甚至不同的代工供應商也會有一些邊際增長。但總的來說，我會說這只會是邊際增長，直到我們看到，例如，從實際代工合作夥伴正在建設新晶圓廠的案例中，更多的結構性增加代工能力。事實上，將會有額外的代工產能，這意味著要建造新的晶圓廠。但是，如果您將其納入我們已經可用的代工產能池，它仍然只是一種邊際增長。

Okay. Got it. And then next question is regarding the end demand environment. Can you give us a sense on how do you see end demand for IT, monitor, notebook, TV? And also, are you seeing any impact coming from a smartphone, tablet given the rising issue of the pandemic inside emerging markets like India or other regions?

好的。知道了。然後下一個問題是關於最終需求環境。您能否告訴我們您如何看待 IT、顯示器、筆記本電腦和電視的終端需求？此外，考慮到印度或其他地區等新興市場的流行病問題日益嚴重，您是否看到智能手機、平板電腦帶來的任何影響？

Actually, I will start with automotive, which I believe you forgot to mention, not that you intend to ignore it. I think COVID certainly changed the dynamics altogether. And how COVID is going to end, I mean, it's really nobody knows, right? But we all know, COVID certainly has triggered the surging demand, and therefore, the current imbalance of supply and demand that the industry is suffering from. So when COVID, one way or the other, kind of end, certainly, we believe there will be some implication for the IT, monitor, notebook, et cetera, right, even cellphone and tablet.

其實，我將從汽車開始，我相信你忘記提到了，而不是你打算忽略它。我認為 COVID 肯定會完全改變動態。 COVID 將如何結束，我的意思是，真的沒有人知道，對吧？但眾所周知，COVID 確實引發了需求的激增，因此，目前該行業正在遭受供需失衡。因此，當 COVID 以一種或另一種方式結束時，我們相信肯定會對 IT、顯示器、筆記本電腦等，甚至手機和平板電腦產生一些影響。

Now having said that, I think we also have to recognize the fact that after this long period of staying at home, people are kind of getting more used to working at home and being educated at home, right? So when COVID is over, it's not going to be like people will just forget about their demand by staying at home. I think this will continue. But how this is going to change and how this is going to evolve, I think, certainly, we don't know. We don't have a very good answer. We just have to watch very closely. But our customers are telling us that this COVID situation and by staying at home for so long, people are getting used to it, and that does drive the behavior. And some change of behavior may be here to stay for long or even for good.

話雖如此，我想我們也必須認識到這樣一個事實，即經過長時間的宅在家裡，人們有點習慣了在家工作和在家接受教育，對吧？因此，當 COVID 結束時，人們不會因為呆在家里而忘記自己的需求。我認為這將繼續下去。但是，這將如何改變以及如何演變，我認為，我們當然不知道。我們沒有很好的答案。我們只需要非常仔細地觀察。但是我們的客戶告訴我們，這種 COVID 情況以及長時間呆在家裡，人們已經習慣了，這確實推動了這種行為。一些行為的改變可能會長期存在，甚至永遠存在。

For example, monitors, people used to prefer a notebook rather than monitor, but now they have to like work or have to participate in conference for so long or being educated, right? So monitor becomes a very important tool. And people not only demand for higher-quality monitor, they actually demand for multiple monitors. And I think this kind of behavior change is likely to stay for good.

比如顯示器，以前大家更喜歡筆記本而不是顯示器，現在要喜歡工作或者要參加這麼長時間的會議或者接受教育，對吧？所以monitor成為一個非常重要的工具。而人們不僅需要更高質量的顯示器，他們實際上需要多台顯示器。而且我認為這種行為改變可能會永遠持續下去。

However, having said that, how the COVID is going to end and when it is going to end, certainly, it's going to impact the industry somewhat. But certainly, I don't have the answer. Automotive, however, in our view, we really are talking about a paradigm shift in terms of the demand for more displays and higher displays and larger display for automotive with or without COVID. Actually, if you think about it over the world, there are still many, many places, which are under lockdown or semi lockdown. And yet, the automotive demand is already fast increasing. And as we all know, right, I mean, these shortage semiconductor products here and there, all over the place.

然而，話雖如此，COVID 將如何結束以及何時結束，當然，它會對這個行業產生一定的影響。但當然，我沒有答案。然而，在我們看來，汽車業實際上是在談論一種範式轉變，即無論有沒有 COVID，汽車都需要更多顯示器、更高顯示器和更大顯示器。實際上，如果您在全球範圍內考慮一下，仍然有很多很多地方處於封鎖或半封鎖狀態。然而，汽車需求已經在快速增長。眾所周知，對，我的意思是，到處都是這些短缺的半導體產品。

So I think this new demand of automotive driven by EVs first and the autonomous driving in the future, I think, is here to stay for a very, very long time. And all these new trends are going to accelerate the other demand for display and display driver IC. And not just the volume, also the features, people will be demanding higher end features. And that is very, very good news for us, right? So like TDDI and the local dimming, as we highlighted in our prepared remarks.

因此，我認為這種首先由電動汽車驅動的汽車和未來自動駕駛的新需求將持續很長時間。所有這些新趨勢都將加速對顯示器和顯示驅動器 IC 的其他需求。不僅是體積，還有功能，人們會要求更高端的功能。這對我們來說是非常非常好的消息，對吧？正如我們在準備好的評論中強調的那樣，就像 TDDI 和局部調光一樣。

So in summary, my point is that we are super confident about the upside potential for automotive even way before the Covid situation unfolds. And that is why we were actually engaged very early on, and we were very prepared. And if you look at the revenue upside, if you look at the first half, you take our midpoint for second quarter guidance and you compare year-over-year, you're talking about 80% or 90% kind of growth. And I think you'll probably see even higher growth for the second half. So for the whole year, we are shooting for like double the revenue year-over-year for this year. And I think we have good confidence that the growth is going to continue.

因此，總而言之，我的觀點是，甚至在 Covid 局勢出現之前，我們就對汽車的上行潛力充滿信心。這就是為什麼我們實際上很早就參與了，而且我們做好了充分的準備。如果你看一下收入的上升空間，如果你看上半年，你會採用我們第二季度指導的中點，然後與去年同期相比，你說的是 80% 或 90% 的增長。而且我認為您可能會在下半年看到更高的增長。因此，對於全年，我們的目標是今年的收入同比翻一番。而且我認為我們對增長將繼續下去充滿信心。

Bear in mind, I mean, for example, smartphone is not increasing in size. Tablet, slightly, but not very, very much, ditto for TV and notebook, right? But automotive is really growing in size and also growing in number and growing in features. If you look at the TDDI and AMOLED contribution for display driver IC industry, overall, over the past few years for smartphone and tablet, right, and you kind of apply that to the potential upside for automotive by adopting TDDI and advanced features like local dimming, I think the upside potential for us will be tremendous. So we are very excited about automotive.

請記住，我的意思是，例如，智能手機的尺寸並沒有增加。平板電腦，有點，但不是非常非常多，電視和筆記本電腦也是如此，對吧？但汽車的規模確實在增長，數量也在增長，功能也在增長。如果你看看 TDDI 和 AMOLED 對顯示驅動器 IC 行業的貢獻，總體而言，在過去幾年中對智能手機和平板電腦的貢獻，是的，你可以通過採用 TDDI 和局部調光等高級功能將其應用於汽車的潛在優勢，我認為我們的上行潛力將是巨大的。所以我們對汽車感到非常興奮。

And then for other applications, certainly, how COVID is going to play out, I think, will play some factor. But I think fundamentally, however, I think we are really dealing with a structural imbalance of supply and demand, especially for mature technology nodes, where semiconductor industries didn't want to under invest in their capacity expansion for the past. And new applications keep coming up, and this Covid situation just triggered for it to happen more quickly and in a more dramatic way. But I think the demand and supply imbalance is really a fundamental issue that the industry needs to try and get resolved, right?

然後對於其他應用程序，當然，我認為 COVID 將如何發揮作用將發揮一定的作用。但我認為從根本上說，我認為我們確實在處理供需結構性失衡，尤其是對於成熟的技術節點，半導體行業過去不想在產能擴張方面投資不足。新的應用程序不斷湧現，而這種 Covid 情況只是觸發它以更快、更戲劇性的方式發生。但我認為供需失衡確實是行業需要努力解決的根本問題，對吧？

So the Covid situation is certainly going to change the dynamics of demand and supply. But I think, importantly, for mature technology nodes, even when the Covid ends, I think for the industry to resolve the supply and demand imbalance, I think we still have a long way to go because of the structural imbalance situation.

因此，Covid 的情況肯定會改變需求和供應的動態。但我認為，重要的是，對於成熟的技術節點，即使Covid結束，我認為對於行業解決供需失衡，我認為我們還有很長的路要走，因為結構失衡的情況。

And our next question comes from the line of Donnie Teng of Nomura Securities.

我們的下一個問題來自野村證券的Donnie Teng。

Congrats on the good results. The first question is also regarding to capacity. So I remember maybe last month, I discussed with management about the capacity outlook into second half. And the answer previously I had is like the second half capacity is getting even tighter. So there could be some more severe shortage. But today's prepared remarks said that Himax has secured more capacity for this year and will grow quarter-by-quarter during 2021. So just wondering if you have secured some more foundry capacity, in the past month or is there anything changed in terms of our foundry capacity plan?

恭喜取得好成績。第一個問題也是關於容量的。所以我記得也許上個月，我與管理層討論了下半年的產能前景。我之前得到的答案是下半年的產能越來越緊張。所以可能會出現更嚴重的短缺。但是今天準備好的評論說，Himax 今年已經獲得了更多的產能，並將在 2021 年逐季度增長。所以只是想知道你是否在過去一個月內獲得了更多的代工產能，或者我們的產能有什麼變化嗎？代工產能計劃？

And also another frequently asked question is that, as you know, foundry, they are also raising their wafer price for different kinds of ICs. I think driver ICs price has been raised a lot. So theoretically speaking, foundries driver IC wafer price has been raised a lot as well. But it seems like some foundries still diversify away from driver IC to other products such as like maybe power or memory products. So just wondering, in terms of foundry's cost structure, why driver IC has been always the one who cannot get enough capacity? This is the first question.

還有一個經常被問到的問題是，如你所知，代工廠，他們也在提高不同種類 IC 的晶圓價格。我認為驅動器 IC 的價格已經提高了很多。所以從理論上講，代工廠的驅動IC晶圓價格也提高了很多。但似乎一些代工廠仍然從驅動器 IC 轉向其他產品，例如電源或內存產品。那麼就想知道，在晶圓代工廠的成本結構上，為什麼驅動IC一直是產能不夠的那一塊？這是第一個問題。

Okay. So shall I start with your first question, i.e., your understanding from management about a month ago about the industry's second half outlook for tighter capacity versus our remarks about our ability to enlarge our capacity.

好的。那麼我應該從你的第一個問題開始，即大約一個月前你從管理層對行業下半年產能收緊前景的理解與我們關於我們擴大產能能力的言論的對比。

Yes, yes. Because previously, it sounds like -- yes. Please.

是的是的。因為以前，這聽起來像是——是的。請。

Okay, okay. I think -- my guess is there could be understanding. Actually, if you look at our last quarter's earnings call, in our prepared remarks, we actually have already announced that we feel confident that our accessible capacity over this year will increase quarter-over-quarter, and we are sticking to that view. So we are actually repeating that in this quarter's prepared remarks.

好吧好吧。我想——我猜可能會有諒解。實際上，如果你看看我們上一季度的財報電話會議，在我們準備好的評論中，我們實際上已經宣布，我們有信心今年我們的可用容量將環比增長，我們堅持這一觀點。所以我們實際上在本季度準備好的評論中重複了這一點。

I guess the management's reference for a tighter capacity situation for the second half, I think, I guess, that probably is about the situation of the industry overall. I think across different segments for foundry, talking about large panel and, certainly, smartphone and automotive, all pretty serious. Actually, we are seeing capacity shortage all across all our major applications, and in some cases, even packaging, especially for logic devices, such as our Tcon.

我猜管理層對下半年產能緊張的參考，我想，我猜，這可能是關於整個行業的情況。我認為在代工的不同領域，談論大面板，當然還有智能手機和汽車，都非常嚴肅。實際上，我們在所有主要應用程序中都看到產能短缺，在某些情況下甚至是包裝，特別是對於邏輯設備，例如我們的 Tcon。

So I think we are staying with our view that this year, our prediction is accessible foundry capacity to increase quarter-over-quarter, and there was no surprise taking place over last month or something. We always feel we are prepared for that, and that has been our view since last quarter.

因此，我認為我們堅持我們的觀點，即今年，我們的預測是可獲得的晶圓代工產能將環比增長，並且上個月或其他事情沒有發生意外。我們總覺得我們已經為此做好了準備，自上個季度以來我們一直這麼認為。

And your second question about foundry's capacity tightness, resulting price hikes, and yet they are still diversifying away from driver IC and how it started, what is the implication. I think, unfortunately, that is probably true. And if you ask me, I would say that is because with driver ICs, we are all using what they call mature nodes, right? And mature nodes over the years have lacked enough application to fill up their demand. And driver IC happens to be an application, which brings very big volume and also very predictable and steady volume to foundry for them to rely upon as a very solid filler for the long term. So in return, we ask for very demanding price because that's what our customers ask for.

你的第二個問題是代工廠的產能緊張，導致價格上漲，但他們仍在從驅動 IC 轉向多元化，它是如何開始的，這意味著什麼。不幸的是，我認為這可能是真的。如果你問我，我會說那是因為對於驅動 IC，我們都在使用他們所謂的成熟節點，對嗎？而這些年的成熟節點都缺乏足夠的應用來滿足他們的需求。而驅動器 IC 恰好是一種應用，它為代工廠帶來了非常大的體積，也帶來了非常可預測和穩定的體積，使他們可以長期依賴作為非常堅固的填充物。因此，作為回報，我們要求非常苛刻的價格，因為這是我們客戶的要求。

Now over time, over these years, again, there was a significant lack of investment for capacity expansion for mature nodes because we have something called Moore's law, as we all know, and when people invest, they invest in advanced nodes. So for mature nodes, there's lack of investment. And yet, they are collecting more and more demand. So to start with, probably our margin historically has been low for them, but we provide the volume. And this time around is a good opportunity for them to raise the overall margin by lowering their allocation to driver IC, right?

現在隨著時間的推移，這些年來，對於成熟節點的擴容投資再次顯著缺乏，因為我們有一個叫做摩爾定律的東西，眾所周知，當人們投資時，他們投資於先進的節點。所以對於成熟的節點來說，是缺乏投資的。然而，他們正在收集越來越多的需求。因此，首先，我們的利潤率可能在歷史上對他們來說一直很低，但我們提供了數量。而這次是他們通過降低對驅動IC的分配來提高整體利潤率的好機會，對嗎？

And secondly, guess what, it's always a good thing for them to diversify anyway and given that driver IC really historically has accounted for a very big chunk of their total output. So it's a good timing, good opportunity for them to diversify, right? So we are actually trying to convince our foundry partners to support us more because the characteristics of display driver IC or the demand for panel hasn't changed. We are very steady, and the demand is always there. And we can provide the volume. And certainly, when the industry is so tight, that puts us in a disadvantageous situation. But overall, in the long term, I think driver IC will still be needed to be the filler.

其次，你猜怎麼著，無論如何，對他們來說，多樣化總是一件好事，而且考慮到驅動器 IC 在歷史上確實佔了他們總產量的很大一部分。所以這是他們多元化的好時機，好機會，對吧？所以我們實際上是在試圖說服我們的代工合作夥伴更多地支持我們，因為顯示驅動IC的特性或面板的需求沒有改變。我們很穩定，需求一直都在。我們可以提供體積。當然，當行業如此緊張時，這使我們處於不利境地。但總的來說，從長遠來看，我認為驅動IC仍然需要作為填充物。

So it's a double-edged sword for us, right? On the one hand, the tightness enables us to allocate our capacity in a way that is more favorable to us, and our product becomes more sought after and therefore, our pricing power is enhanced. On the other hand, we are suffering from capacity shortage. And I'm just afraid, while as hard as we try to convince our foundry partners to enlarge their support for display driver, I think there is indeed admittedly a limitation. So in the foreseeable future, we are still seeing mature nodes, especially for driver IC being in a tight situation. I hope that answers your question, Donnie.

所以這對我們來說是一把雙刃劍，對吧？一方面，緊張使我們能夠以對我們更有利的方式分配產能，我們的產品更受歡迎，因此我們的定價能力得到增強。另一方面，我們正遭受產能短缺的困擾。我只是擔心，雖然我們努力說服我們的代工合作夥伴擴大對顯示驅動程序的支持，但我認為確實存在一個不可否認的局限性。所以在可預見的未來，我們還是會看到成熟的節點，尤其是驅動IC吃緊的情況。我希望這能回答你的問題，唐尼。

And the last one is when entering into the second half, based on current visibility, wondering if you could just rank the supply tightness by different kind of driver ICs as well as different kind of technology nodes, like 12 inch or 8 inch per your perspective.

最後一個是進入下半年，根據目前的可見性，想知道您是否可以根據不同類型的驅動 IC 以及不同類型的技術節點對供應緊張程度進行排名，例如 12 英寸或 8 英寸，按照您的觀點.

Good question. I think 8 inch in the long-term will be more severe than 12 inch. I'm not sure -- well, firstly, I have to admit, there's got to be some overbooking from our customers, right? However, I mean and it's very difficult for one to gauge how much is there exactly for the so-called overbooking portion. What we know is that even if we take all of that overbooking away, their "actual demand," we are still far from being able to meet them all, right? So , it is therefore, the customer knows even if they give us just the actual demand, we cannot meet the demand, and therefore, that kind of encourages them to give us more forecast.

好問題。我認為從長遠來看，8英寸會比12英寸更嚴重。我不確定——好吧，首先，我必須承認，我們的客戶一定會超額預訂，對吧？但是，我的意思是，很難判斷所謂的超額預訂部分到底有多少。我們所知道的是，即使我們取消所有超額預訂，即他們的“實際需求”，我們仍遠不能滿足他們的需求，對嗎？因此，客戶知道即使他們只給我們實際需求，我們也無法滿足需求，因此，這鼓勵他們給我們更多的預測。

So when we talk about the degree of shortage, we have to be slightly careful because in different sectors, people do behave slightly different, and overbooking here may play a part. But I think whether it's the second half or longer term, I think 8 inch will be more serious than 12 inch because, I mean, who is really building a new 8-inch tools? It's very difficult to even get new tools, and it's equally difficult to get secondhand tools. And people have little incentive to build new 8-inch tools, right? So I think there's a structural fundamental issue here.

所以當我們談到短缺程度時，我們必須稍微小心一點，因為在不同的部門，人們的行為確實略有不同，這裡超額預訂可能起到了一定的作用。但我認為無論是下半年還是更長期，我認為 8 英寸將比 12 英寸更嚴重，因為，我的意思是，誰真正在製造新的 8 英寸工具？甚至獲得新工具都非常困難，獲得二手工具也同樣困難。人們沒有什麼動力去製造新的 8 英寸工具，對吧？所以我認為這裡有一個結構性的基本問題。

And for that reason, I think automotive, which for traditional DDIC is entirely 8 inch, not just Himax, but across the whole industry, right? So I think the situation is pretty severe over there. And that is why we are encouraging our customers, including end customers, to accelerate and accelerate the adoption and mass production of TDDI because, guess what, for TDDI, we are switching to mature nodes of 12 inch. And we are going to replace or occupy some of the capacity that is being occupied right now by smartphone, which is going to migrate further into more advanced nodes, right? So for example, 80 nanometer into 50 nanometer, when the TDDI for smartphone right now is primarily 55 and will be migrating to 40 and so on, right? And there'll be a bigger chunk of AMOLED for smartphone, which is primarily 40 right now, will be migrated to 28, et cetera, right?

出於這個原因，我認為汽車，傳統 DDIC 完全是 8 英寸，不僅僅是 Himax，而是整個行業，對吧？所以我覺得那邊的情況還是比較嚴峻的。這就是為什麼我們鼓勵我們的客戶，包括最終客戶，加速和加速 TDDI 的採用和量產，因為，猜猜看，對於 TDDI，我們正在轉向 12 英寸的成熟節點。我們將取代或占據智能手機目前佔用的部分容量，智能手機將進一步遷移到更先進的節點，對嗎？因此，例如，80 納米變為 50 納米，此時智能手機的 TDDI 主要是 55 並且將遷移到 40 等等，對嗎？而且智能手機的 AMOLED 將會更大，目前主要是 40 個，將遷移到 28 個，等等，對吧？

So there will be a certain portion of TDDI, which are now being used by smartphone and tablet being likely tight. So I think it is a good idea for automotive to go and pick it up. So we have actually secured a very good long-term capacity commitment for TDDI 12 inch for the next few years, Although TDDI today for smartphone is already so full, but we have got a very good strong commitment from our foundry partners for the rationale I just tried to explain, right? So therefore, we can offer with good confidence to our customers that if you switch to TDDI, that is going to help alleviate the serious shortage of 8 inch DDIC for automotive, which is really badly in shortage right now.

所以會有一部分TDDI，現在被智能手機和平板電腦使用的可能很緊張。所以我認為讓汽車去接它是個好主意。因此，我們實際上已經為未來幾年的 TDDI 12 英寸獲得了非常好的長期產能承諾，雖然今天用於智能手機的 TDDI 已經如此滿，但我們的代工合作夥伴為我提供了非常好的強有力的承諾。只是試圖解釋，對吧？因此，我們可以滿懷信心地向我們的客戶提供，如果您改用 TDDI，那將有助於緩解汽車用 8 英寸 DDIC 的嚴重短缺，而汽車目前確實非常短缺。

And then if you talk about others, we are certainly suffering from a very big shortage gap for smartphone/tablet. For 2 of those areas, we share the same capacity pool. And as we repeat it again and again, we are allocating our capacity in favor of table because that is our stronghold. And also, we feel that is where people need the device to work and get educated, right, versus smartphone, which is probably less urgent. So we kind of make that decision. But our shortage for smartphone is very, very severe and also shortage for TDDI as well.

然後如果你談論其他人，我們肯定會遭受智能手機/平板電腦的巨大短缺缺口。對於其中兩個領域，我們共享同一個容量池。當我們一次又一次地重複它時，我們正在分配我們的容量以支持餐桌，因為那是我們的據點。而且，我們認為這是人們需要設備工作和接受教育的地方，對，而不是智能手機，後者可能不那麼緊迫。所以我們有點做出那個決定。但是我們的智能手機短缺非常非常嚴重，TDDI 也很短缺。

I would say probably less so for large panel, although I have to say, I mean, my large panel customers hear about this, they'll be upset, right, because what they are seeing is also pretty bad shortage as well. So it's slightly difficult to quantify, but I would say automotive, long term, looks difficult to resolve, unless people switch faster to TDDI. And for smartphone and tablet, foundries are building new 28 nanometers, but that is not going to come along until probably 2 or 3 years later. And that will help resolve some of the pressure. And before then, we are seeing this fundamental structural shortage still being very difficult to get resolved.

對於大型面板，我會說可能不那麼重要，儘管我不得不說，我的意思是，我的大型面板客戶聽說了這一點，他們會很不高興，對吧，因為他們看到的也是非常嚴重的短缺。所以量化有點困難，但我想說汽車，從長遠來看，看起來很難解決，除非人們更快地轉向 TDDI。對於智能手機和平板電腦，代工廠正在製造新的 28 納米，但這可能要到 2 或 3 年後才會出現。這將有助於解決一些壓力。而在此之前，我們看到這種根本性的結構性短缺仍然很難得到解決。

And our next question comes from the line of John Lopez.

我們的下一個問題來自 John Lopez。

My first question is, I guess I want to come back to the calendar Q2 guidance and perhaps ask you this way. Across the board, most, not all, but most semiconductor companies are guiding kind of flattish. And those companies have pretty reasonable exposure to market like TVs and PCs and automotive. You guys are guiding your display driver IC sales, if we take the other category out, you're guiding your DDIC sales up about 15% roughly, give or take, quarter-to-quarter. Is that mostly price? I know you don't want to get into specifics and it sounds like there's some competition, but is it mostly price? Or are you also growing units at a time when it doesn't appear like others are?

我的第一個問題是，我想我想回到日曆 Q2 指南，也許這樣問你。總體而言，大多數（不是全部，但大多數）半導體公司都在指導持平。這些公司在電視、個人電腦和汽車等市場上的曝光率相當合理。你們正在指導您的顯示驅動器 IC 銷售，如果我們剔除其他類別，您將指導您的 DDIC 銷售額按季度大致增長約 15%，或多或少。這主要是價格嗎？我知道您不想詳細說明，聽起來好像存在一些競爭，但主要是價格嗎？還是您也在增加單位的時間看起來不像其他人？

I think, Jonathan, yes, you're right, I don't want to get into specifics. But to give you a sense of -- I mean simple mathematics, right? If you look at our gross margin, right, we are guiding for increase from 40% to 46%, 47%, right? There's 6, 7 percentage points increase. And yet for our revenue is 15% to 20%. And the cost increase, I can assure you, is not really that much, meaning the growth is still primarily driven by quantity rather than price. But yes, definitely, there's an element of price. But I mean, if it's all about price, then you would expect our margin will grow accordingly, right?

我想，喬納森，是的，你是對的，我不想談細節。但是為了讓你感覺——我的意思是簡單的數學，對吧？如果你看一下我們的毛利率，對吧，我們正在指導從 40% 增加到 46%、47%，對嗎？有 6、7 個百分點的增長。然而我們的收入是 15% 到 20%。我可以向你保證，成本增加並沒有那麼多，這意味著增長仍然主要是由數量而不是價格驅動的。但是，是的，肯定有價格因素。但我的意思是，如果一切都與價格有關，那麼您會期望我們的利潤率會相應增長，對嗎？

Got you. Okay. That helps. And actually, you're hitting on the second topic I wanted to try and get out a little bit, which is if we look at the last couple of quarters, let's say, from the middle of last year until right now, you guys have talked and others have talked about this very acute tightness and the ability or the requirement for foundry prices to go up. So over these last couple of quarters, the foundries have increased their gross margins. And by foundries, I mean, 200-millimeter heavy foundries, by maybe 5, 6 percentage points. Your gross margin is up by 2,000 basis points. So how do we think about the difference between those 2? In other words, why is your gross margin increasing so much faster than, say, the rate of change of the supplier?

明白了好的。這有幫助。事實上，你談到了我想嘗試的第二個話題，那就是如果我們看看過去幾個季度，比方說，從去年年中到現在，你們有談論和其他人談論了這種非常嚴重的緊張以及代工價格上漲的能力或要求。因此，在過去的幾個季度中，代工廠的毛利率有所提高。而鑄造廠，我的意思是，200 毫米重型鑄造廠，可能增加 5、6 個百分點。您的毛利率上升了 2,000 個基點。那麼我們如何看待這兩者之間的區別呢？換句話說，為什麼您的毛利率增長速度比供應商的變化率快得多？

I really can't talk on behalf of my suppliers, and I think that is just the reality. And certainly, I mean, there is -- from taking the goods from foundry to our output, right, there's a time difference. That probably partially explained it, but I don't know. Honestly, I don't know, but that is just a fact. I think certainly, panel industry is also enjoying good margin expansion and profit expansion. And they are in desperate need for display driver IC, which is really their major, major bottleneck for them to produce more panels, right?

我真的不能代表我的供應商說話，我認為這就是現實。當然，我的意思是，從鑄造廠到我們的產出，是有時間差的。這可能部分解釋了它，但我不知道。老實說，我不知道，但這只是事實。我認為當然，面板行業也正在享受良好的利潤擴張和利潤擴張。他們迫切需要顯示驅動IC，這真的是他們生產更多面板的主要瓶頸，對吧？

And if you look at the display driver IC, notwithstanding the recent price hikes, driver IC still represents a relatively small portion of their bill of material. Let alone, if you take into account their depreciation costs and utilities and overhead, right, that is a lot, meaning for a relatively small portion of their cost, if they don't get their IC support, they can't make the shipment. So meaning they are probably more eager than a lot of other industries because their overhead being so heavy, right? And the market is still pretty healthy to "bid up" the driver IC price.

如果您查看顯示驅動器 IC，儘管最近價格上漲，但驅動器 IC 仍然只佔其物料清單的一小部分。更不用說，如果你考慮到他們的折舊成本和水電費和管理費用，對，那是很多，意味著對於他們成本的相對較小的一部分，如果他們沒有得到他們的 IC 支持，他們就無法發貨.所以這意味著他們可能比許多其他行業更渴望，因為他們的開銷太重了，對吧？而且市場仍然非常健康，可以“抬高”驅動器 IC 的價格。

And yes, so I think there's a fundamental difference in the sense that foundries -- not foundries -- sorry, panel makers, when they make the new fab, these days, you're talking about, I don't know, close to $10 billion dollars, right? So they are not going to wait and sit around empty idle with their $10 billion investment because they are not willing to pay 20% or 10% more for driver IC. I think that is probably a good explanation.

是的，所以我認為代工廠——而不是代工廠——抱歉，面板製造商，當他們建造新工廠時，這些天，你在談論，我不知道，接近100 億美元，對嗎？因此，他們不會坐以待斃，因為他們不願意為驅動器 IC 多支付 20% 或 10% 的費用，因此他們的 100 億美元投資將空無一人。我認為這可能是一個很好的解釋。

Sure. And that makes sense. And sorry, just one last one, if I could. I want to talk about automotive for a second, and maybe I want to frame it this way. If we forget last year, if we forget Covid 2020 and go back to 2019, at that point, your automotive -- if our numbers are right, your automotive revenue was around $115 million, give or take, and actually had declined a bit. And my recollection at that time was there was some discussion about maturity, sort of maturity of the automotive industry and maybe some penetration thresholds. So now if we kind of fast forward to this year, it sounds like you're going to, I don't know, maybe not double, but come pretty close to doubling. So you're going to be about double versus what you were in 2019. Can you just help us understand the factors there? Is it all sort of a resurgence of demand? Or what are maybe the other variables that maybe bridges from 2019 to today?

當然。這是有道理的。抱歉，如果可以的話，就最後一個。我想談一談汽車，也許我想這樣構想。如果我們忘記去年，如果我們忘記 Covid 2020 並回到 2019 年，那時候，你的汽車——如果我們的數字是正確的，你的汽車收入大約為 1.15 億美元，或多或少，實際上已經下降了一點。我當時的回憶是，有一些關於成熟度的討論，汽車行業的成熟度，也許還有一些滲透門檻。所以現在如果我們快進到今年，聽起來你會，我不知道，也許不會翻倍，但非常接近翻倍。所以你將比 2019 年翻一番。你能幫助我們了解其中的因素嗎？是需求的複蘇嗎？或者從 2019 年到今天可能還有哪些其他變量？

I think it's primarily because in -- especially the first half of 2020, the Covid situation really drove the auto industry way down, and they are actually laying off their workers and shutting down their factories and suspended their purchase orders for semiconductor parts. And then towards the end of last year, they kind of all of a sudden wake up, and ever since, they've been playing catch up, right? So on a year-over-year basis, you are talking about a particularly bad year last year, which was actually unusual.

我認為這主要是因為在 - 特別是 2020 年上半年，Covid 的情況確實推動了汽車行業的下滑，他們實際上正在裁員並關閉工廠並暫停他們的半導體零件採購訂單。然後在去年年底，他們突然醒來，從那以後，他們一直在追趕，對吧？因此，與去年同期相比，你說的是去年特別糟糕的一年，這實際上是不尋常的。

So if you extend the time frame a little bit longer to cover the few years earlier than last year, then you'll see our display driver business for automotive have been growing very, very steadily and nicely almost quarter after quarter. And that is simply because in everybody's cars, the new models have more panels and larger panels and high resolution panels than older models, and that's just a simple effect. It's a very, very long growing trend. And I will see last year, especially the the first 3 quarters of last year as an exception, driven by COVID.

因此，如果你將時間框架延長一點，涵蓋比去年早的幾年，那麼你會看到我們的汽車顯示驅動器業務一直在非常、非常穩定地增長，幾乎每個季度都在增長。這僅僅是因為在每個人的汽車中，新車型比舊車型有更多的面板、更大的面板和高分辨率的面板，這只是一個簡單的效果。這是一個非常非常長的增長趨勢。我會看到去年，尤其是去年的前三個季度，在 COVID 的推動下是一個例外。

Now from here and going forward, as I mentioned, right, with the EV really coming into mainstream, when your passenger room becomes larger and people demand for better quality display, larger display, even more displays, I think in terms of volume and complexity of display, meaning display demanding higher-end features, I think this is a very, very long-term growth opportunity for us. So this year, I think 2 factors. This is kind of a turning point, right? One is the Covid, and now it's recovery and catching up in terms of volume; and two, the adoption of EV. And therefore, more advanced panels and more panels. I think they kind of hit at the same point, start -- pretty much starting from this year, being the turning point. So that is why we are very excited about automotive, and that is why we actually -- we prepared pretty early, as I mentioned earlier, before even Covid where we didn't know Covid is going to have such a big impact for the automotive industry, but we will gear up pretty aggressively in terms of getting ourselves ready for more capacity.

現在從現在開始，正如我提到的，隨著電動汽車真正成為主流，當你的乘客空間變得更大，人們需要更好質量的顯示器、更大的顯示器、甚至更多的顯示器時，我認為就體積和復雜性而言顯示，意味著顯示要求更高端的功能，我認為這對我們來說是一個非常非常長期的增長機會。所以今年，我認為有兩個因素。這是一個轉折點，對吧？一個是 Covid，現在它正在恢復並在數量上迎頭趕上；第二，電動汽車的採用。因此，更高級的面板和更多的面板。我認為他們在同一點上受到打擊，開始——幾乎從今年開始，成為轉折點。所以這就是為什麼我們對汽車行業感到非常興奮，這就是為什麼我們實際上 - 正如我之前提到的那樣，我們很早就做好了準備，甚至在我們不知道 Covid 會對汽車行業產生如此大的影響之前行業，但我們將在為更多產能做好準備方面相當積極地做好準備。

And at this time, I would like to turn it back to our President, CEO and Director, Mr. Jordan Wu, for the closing remarks.

在這個時候，我想把它轉回我們的總裁、首席執行官兼董事 Jordan Wu 先生的閉幕詞。

As a final note, Eric Li, our Chief IR/PR Officer, will maintain investor marketing activities and continue to attend investor conferences. So we will announce the details as they come about. Thank you, and have a nice day.

最後一點，我們的首席投資者關係/公關官 Eric Li 將維持投資者營銷活動並繼續參加投資者會議。所以我們會在細節出現時公佈。謝謝你，祝你有美好的一天。

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect.

女士們，先生們，感謝你們參加今天的會議。程序到此結束。您現在可以斷開連接。