奇景光電 (HIMX) 2022 Q1 法說會逐字稿

Hello, ladies and gentlemen. Welcome to the Himax Technologies, Inc. First Quarter 2022 Earnings Conference Call (Operator Instructions) As a reminder, this conference is being recorded.

你好，女士們，先生們。歡迎參加 Himax Technologies, Inc. 2022 年第一季度收益電話會議（操作員說明） 作為提醒，本次會議正在錄製中。

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

我現在想將會議轉交給您的主持人，來自 MZ Group 的 Mark Schwalenberg 先生。

Thank you, operator. Welcome, everyone, to Himax's first quarter 2022 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.

謝謝你，接線員。歡迎大家參加奇景光電 2022 年第一季度財報電話會議。加入我們公司的是總裁兼首席執行官Jordan Wu先生；傑西卡潘女士，首席財務官；以及首席投資者關係/公關官 Eric Li 先生。

After the company's prepared comments, we've allocated time for questions in a Q&A. If you've 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.

在公司準備好評論後，我們分配了時間進行問答。如果您尚未收到今天發布的業績副本，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 網站 www.himax.com.tw 下載副本。

Unless otherwise specified, we will discuss our financials based on non-IFRS measures. You can find the related reconciliation to IFRS on our website.

除非另有說明，否則我們將根據非 IFRS 措施討論我們的財務狀況。您可以在我們的網站上找到與 IFRS 的相關對賬。

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. A list of risk factors can be found in the company's SEC filings, Form 20-F for the year ended December 31, 2021, in the section entitled Risk Factors as may be amended.

在我們開始正式發言之前，我想提醒大家，本次電話會議中的一些陳述，包括有關預期未來財務業績和行業增長的陳述，是涉及許多風險和不確定性的前瞻性陳述，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。風險因素清單可在公司提交給 SEC 的文件中找到，即截至 2021 年 12 月 31 日止年度的 20-F 表格，標題為可能修訂的風險因素部分。

Except for the company's full year of 2021 financials, which were provided in the company's 20-F and filed with the SEC on March 23, 2022, 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.

除了公司 2021 年全年財務數據（在公司 20-F 中提供並於 2022 年 3 月 23 日向 SEC 提交）外，本次電話會議中包含的財務信息未經審計，並根據 IFRS 會計進行合併和編制。此類財務信息由內部生成，並未接受相同的審查和審查，包括我們對年度合併財務報表進行審計的獨立審計師的內部審計程序和外部審計，並且可能與本年度的經審計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。

Thank you, Mark, and thank you, everyone, for joining us. My name is Eric Li, Chief IR/IP Officer at Himax. On today's call, I will first review Himax's consolidated financial performance for the first quarter of 2022, followed by our second quarter 2022 outlook. Jordan will then give an update on the status of our business, after which we will take questions.

謝謝你，馬克，也謝謝大家加入我們。我叫 Eric Li，Himax 首席 IR/IP 官。在今天的電話會議上，我將首先回顧 Himax 2022 年第一季度的綜合財務業績，然後是我們對 2022 年第二季度的展望。喬丹隨後將提供我們業務狀況的最新信息，之後我們將回答問題。

Historically, our quarter sales are seasonally the low point of year due to the Lunar New Year holidays. This year, starting from February, additional factors also weighed in, mainly new lockdowns in China to contain the spread of Omicron variant and the geographical conflict erupting in Ukraine, both causing major disruption to our supply chain. Despite these additional challenges, our first quarter revenue, gross margin and EPS were all in line with the guided range issued on February 17, 2022.

從歷史上看，由於農曆新年假期，我們的季度銷售額季節性地處於一年中的低點。今年，從 2 月開始，其他因素也受到影響，主要是中國為遏制 Omicron 變體的傳播而實施的新封鎖和烏克蘭爆發的地理衝突，都對我們的供應鏈造成了重大破壞。儘管存在這些額外挑戰，但我們第一季度的收入、毛利率和每股收益均符合 2022 年 2 月 17 日發布的指導範圍。

First quarter net revenues of $412.8 million decreased 8.6% sequentially, within our guidance of down 5% to 9%. Yet Q1 sales were up 33.6% on a year-over-year basis. Our gross margin came in at 47%, a decrease from the record high of 51.8% in the fourth quarter last year, but within our guidance of around 46% to 48%. Non-IFRS profit per diluted ADS was $0.697 a mid-range of the guidance of $0.67 to $0.73, but significantly up 81.5% from the same period last year. IFRS profit per diluted ADS was $0.663, a mid-point of the guidance of $0.635 to $0.695, but significantly up 73.1% year-over-year.

第一季度淨收入為 4.128 億美元，環比下降 8.6%，在我們預期的下降 5% 至 9% 的範圍內。然而，第一季度的銷售額同比增長了 33.6%。我們的毛利率為 47%，低於去年第四季度創下的 51.8% 的歷史新高，但在我們約 46% 至 48% 的指導範圍內。非國際財務報告準則每攤薄 ADS 利潤為 0.697 美元，處於指導值 0.67 美元至 0.73 美元的中間範圍，但比去年同期大幅增長 81.5%。 IFRS 每攤薄 ADS 利潤為 0.663 美元，是 0.635 美元至 0.695 美元指引的中點，但同比顯著增長 73.1%。

Revenue from large display drivers was $110.6 million in Q1, a decrease of 11.5% sequentially but an increase of approximately 60% year-over-year. TV revenue was flat sequentially, anchored by high-end and large-sized TV shipments to key account, despite the first quarter being a seasonally low period and the continued soft TV demand.

第一季度來自大型顯示驅動器的收入為 1.106 億美元，環比下降 11.5%，但同比增長約 60%。電視收入環比持平，主要客戶是高端和大尺寸電視出貨量，儘管第一季度是季節性低迷期且電視需求持續疲軟。

After consecutive quarters of strong growth, both monitor and the notebook IC sales decreased sequentially as we guided, on the backdrop of slowing end market sell-through. However, both grows nicely on a year-over-year basis, a reflection of our leading position across high-end display and the premium model. Large panel driver IC accounted for 26.8% of total revenue for this quarter compared to 27.7% in the first quarter of 2021 and 22.6% a year ago.

在連續幾個季度強勁增長之後，在終端市場銷售放緩的背景下，顯示器和筆記本 IC 的銷售額在我們的指導下環比下降。然而，兩者的同比增長都很好，這反映了我們在高端顯示器和高端機型方面的領先地位。大型面板驅動 IC 佔本季度總收入的 26.8%，而 2021 年第一季度為 27.7%，一年前為 22.6%。

Moving on to our small and medium-sized display driver segment. Revenue was $258.5 million, a decline of mid-single digits sequentially, but an increase of more than 25% year-over-year. The robust sales growth in our automotive segment for the past several quarters continued during Q1. Automotive IC sales increased more than 30% sequentially and more than 170% year-over-year. Our e-paper sales increased more than 15% sequentially in Q1 despite a shipment halt at the end of the quarter caused by city lockdowns in China.

繼續我們的中小型顯示驅動程序部分。收入為 2.585 億美元，環比下降中個位數，但同比增長超過 25%。過去幾個季度，我們汽車部門的強勁銷售增長在第一季度繼續保持。汽車 IC 銷售額環比增長超過 30%，同比增長超過 170%。儘管由於中國城市封鎖導致本季度末發貨停止，我們的電子紙銷售額在第一季度環比增長超過 15%。

More in the medium-sized driver IC segment accounted for 62.6% of total sales for the quarter compared to 61.2% in the previous quarter and 66.1% a year ago. In Q1, the automotive driver segment became our single largest revenue contributor, representing over 25% of total sales. We expect this upward trend in automotive contribution to continue throughout 2022. The revenue growth in automotive driver IC was backed by comprehensive design-win coverage across the panel houses, Tier-1s and the car makers alongside increased capacity for both discrete DDIC and TDDI.

中型驅動 IC 細分市場佔本季度總銷售額的 62.6%，高於上一季度的 61.2% 和一年前的 66.1%。在第一季度，汽車司機部門成為我們最大的單一收入貢獻者，佔總銷售額的 25% 以上。我們預計汽車貢獻的這種上升趨勢將在整個 2022 年持續。汽車驅動 IC 的收入增長得益於面板廠商、Tier-1 和汽車製造商的全面設計贏得覆蓋，以及分立 DDIC 和 TDDI 產能的增加。

Automotive DDIC sales, which is still predominant portion of our automotive IC revenue, enjoyed decent first quarter growth, up more than 20% sequentially with demand continuing to outpace supply. Our TDDI for automotive, we reached an impressive milestone with over 3 million units shipped during the first quarter as we previously guided. Given our leadership position in automotive driver IC, comprehensive product offerings and the growing vehicle different market, we expect sustainable, robust growth in our automotive business with further market share gains on top of fast expanding market.

汽車 DDIC 銷售仍然是我們汽車 IC 收入的主要部分，第一季度增長不錯，環比增長超過 20%，需求繼續超過供應。我們的汽車 TDDI 達到了一個令人印象深刻的里程碑，第一季度出貨量超過 300 萬台，正如我們之前指導的那樣。鑑於我們在汽車驅動 IC、綜合產品供應和不斷增長的汽車不同市場方面的領先地位，我們預計我們的汽車業務將實現可持續、強勁的增長，並在快速擴張的市場基礎上進一步增加市場份額。

After many quarters of consecutive growth, our Q1 tablet revenue slightly declined off a high base by mid-single digit. However, capital revenue was up low-teens on a year-over-year basis due to strength in our TDDI sales, which grew low single digit from the proactive adoption of all leading non-iOS tablet names. We maintained our leading market share position in the non-iOS tablet market with accelerated TDDI penetration among leading brand names.

經過多個季度的連續增長，我們的第一季度平板電腦收入從高基數小幅下滑至中個位數。然而，由於我們的 TDDI 銷售強勁，資本收入同比增長了十幾倍，由於積極採用所有領先的非 iOS 平板電腦名稱，該銷售額增長了低個位數。我們在非 iOS 平板電腦市場保持領先的市場份額地位，加快了 TDDI 在領先品牌中的滲透。

In line with our guidance, first quarter smartphone revenue declined double digit sequentially. The smartphone market continued to be challenged by sluggish demand on expected lockdowns in China and the geopolitical tension, resulting in significantly reduced the demand visibility at panel houses and OEMs, which have started to reduce their IC inventory. As we mentioned on last quarter's call, we expected a portion of the first quarter decline due to our strategical rate initiated product transition for key customers' new designs, which led to less production output during Q1.

根據我們的指引，第一季度智能手機收入環比下降兩位數。智能手機市場繼續受到中國預期鎖定需求低迷和地緣政治緊張局勢的挑戰，導致面板廠和原始設備製造商的需求能見度顯著降低，它們已開始減少 IC 庫存。正如我們在上個季度的電話會議中提到的那樣，我們預計第一季度的部分下降是由於我們為關鍵客戶的新設計啟動的戰略性產品過渡，導致第一季度的產量減少。

First quarter non-driver revenues came in better than expected at $43.7 million, a sequential decrease of low-teens but up around 25% year-over-year. The better-than-expected result was driven by higher shipments of our ultra-low power AI image sensing total solution to the notebook market. Our Tcon business was slightly down mid-single digits sequentially, but increased more than 50% year-over-year, a reflection of better mix towards high-end product area, such as the 4K, 8K TV, gaming monitor, low-power notebook and automotive Tcon.

第一季度非司機收入好於預期，為 4370 萬美元，連續下降，但同比增長約 25%。優於預期的結果是由於我們的超低功耗人工智能圖像傳感整體解決方案向筆記本市場出貨量增加。我們的 Tcon 業務環比略有下降中個位數，但同比增長超過 50%，這反映了對高端產品領域的更好組合，例如 4K、8K 電視、遊戲顯示器、低功耗筆記本電腦和汽車 Tcon。

Non-driver products in Q1 accounted for 10.6% of total revenue as compared to 11.1% in the fourth quarter of 2021 and 11.3% a year ago. Non-IFRS gross margin for the first quarter was 47%, a decrease from 51.8% of last quarter, but much higher than 40.2% of the same period last year. As we previously discussed, there were 2 primary factors that adversely impacted our margin profile. First, our cost of goods sold for Q1 reflected the higher foundry price from the previous quarter. Second, the expedited customer orders for which we enjoyed premium prices decreased in Q1 due to market softness. IFRS gross margins was also 47% for the quarter. Our non-IFRS operating expenses for the first quarter was $44 million, down 9.3% from the previous quarter but up 12.3% from a year ago.

第一季度非驅動產品佔總收入的 10.6%，而 2021 年第四季度為 11.1%，一年前為 11.3%。一季度非國際財務報告準則毛利率為47%，較上一季度的51.8%有所下降，但遠高於去年同期的40.2%。正如我們之前所討論的，有兩個主要因素對我們的利潤率狀況產生了不利影響。首先，我們第一季度的銷售成本反映了上一季度更高的代工價格。其次，由於市場疲軟，我們享受溢價的加急客戶訂單在第一季度有所下降。本季度的 IFRS 毛利率也為 47%。我們第一季度的非國際財務報告準則運營費用為 4400 萬美元，比上一季度下降 9.3%，但比去年同期增長 12.3%。

As a reminder, the sequential operating expenses decrease was caused by a onetime cash bonus at the end of December last year to further reward employees for our last year's remarkable financial results. The year-over-year increase was caused mainly by the increased salary and R&D expenses. IFRS operating expenses was $51.5 million for the first quarter, down 8% from the preceding quarter, but up 30.5% from a year ago. The higher IFRS figures were mainly due to the change of annual bonus compensation, which we award employees at the end of September each year.

提醒一下，營業費用的環比下降是由於去年 12 月底的一次性現金紅利，以進一步獎勵我們去年出色的財務業績的員工。同比增長主要是由於工資和研發費用增加所致。國際財務報告準則第一季度的運營費用為 5150 萬美元，比上一季度下降 8%，但比去年同期增長 30.5%。較高的國際財務報告準則數字主要是由於年度獎金薪酬的變化，我們在每年 9 月底獎勵員工。

The 2021 annual bonus compensation, including RSUs and the cash awards totaled $74.7 million, out of which $24.8 million was immediately vested and recognized in the third quarter of 2021. The remainder will be equally vested in 3 tranches at the first, second and third anniversary of the grant date. The remaining compensation expenses will be recognized on a straight-line basis over the vesting period of each tranche.

包括 RSU 和現金獎勵在內的 2021 年年度獎金薪酬總額為 7,470 萬美元，其中 2,480 萬美元在 2021 年第三季度立即歸屬和確認。其餘部分將在第一、第二和第三週年時分三批平均歸屬授予日期。剩餘補償費用將在各批次的等待期內以直線法確認。

The first quarter non-IFRS operating income was $149.9 million or 36.3% of sales versus 41.1% of sales in the last quarter and 27.5% of sales from a year ago. Non-IFRS after-tax profit was $121.9 million or $0.697 per diluted ADS, decreased from $148.4 million or $0.849 per diluted ADS last quarter, but significantly higher than $67.1 million or $0.384 for the same period last year.

第一季度非國際財務報告準則營業收入為 1.499 億美元，佔銷售額的 36.3%，而上一季度佔銷售額的 41.1%，佔去年同期銷售額的 27.5%。非國際財務報告準則稅後利潤為 1.219 億美元或每股攤薄後的 ADS 0.697 美元，低於上一季度的 1.484 億美元或每股攤薄後的 ADS 0.849 美元，但顯著高於去年同期的 6710 萬美元或 0.384 美元。

Turning to the balance sheet. We had $447.1 million of cash, cash equivalents and other financial assets as of March 31, 2022, compared to $245.8 million at the same time last year and $364.4 million a quarter ago. The higher cash balance was mainly from $72 million of operating cash inflow during the quarter and the payments received from the customer for the purpose of securing their long-term chip supply. We had $51 million of long-term unsecured loans as of the end of Q1, of which $6 million was current portion.

轉向資產負債表。截至 2022 年 3 月 31 日，我們擁有 4.471 億美元的現金、現金等價物和其他金融資產，而去年同期為 2.458 億美元，上一季度為 3.644 億美元。較高的現金餘額主要來自本季度 7,200 萬美元的經營現金流入以及為確保其長期芯片供應而從客戶那裡收到的付款。截至第一季度末，我們有 5100 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, 2022, were $253.1 million, up from $198.6 million last quarter and up from $114.9 million a year ago. Accounts receivables at the end of March 2022 was $442.2 million, up from $410.2 million last quarter and up from $289.1 million a year ago. DSO was 96 days at the quarter end as compared to 84 days a year ago and 97 days for last quarter. First quarter CapEx expenditures were $3.6 million versus $2 million for both last quarter and a year ago. The first quarter CapEx was mainly for R&D-related equipment and in-house tester for our IC design business.

截至 2022 年 3 月 31 日，我們的季度末庫存為 2.531 億美元，高於上一季度的 1.986 億美元，高於一年前的 1.149 億美元。截至 2022 年 3 月底，應收賬款為 4.422 億美元，高於上一季度的 4.102 億美元，高於一年前的 2.891 億美元。季度末 DSO 為 96 天，而去年同期為 84 天，上一季度為 97 天。第一季度資本支出為 360 萬美元，而上一季度和一年前均為 200 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和內部測試儀。

Just prior to today's call, we announced an annual cash dividend of $1.25 per ADS, totaling approximately $217.9 million and the payable on July 12, 2022. The payout ratio is 50% of net profit of last year, which is lower than our average payout ratio historically. The relatively low payout ratio reflects our decision to reserve sufficient working capital in the light of macroeconomic uncertainties and to facilitate our anticipated growth for the next few years. We are grateful for the continued support of our shareholders as we continue to execute our business objectives and strive to deliver sustainable long-term growth. As of March 31, 2022, Himax had 174.3 ADS outstanding, unchanged from last quarter. On a fully diluted basis, total number of ADS outstanding for the first quarter was $174.8 million.

就在今天的電話會議之前，我們宣布每年派發每股 ADS 1.25 美元的現金股息，總計約 2.179 億美元，將於 2022 年 7 月 12 日支付。派息率為去年淨利潤的 50%，低於我們的平均派息率歷史比例。相對較低的派息率反映了我們決定在宏觀經濟不確定性的情況下儲備足夠的營運資金並促進我們未來幾年的預期增長。我們感謝股東的持續支持，因為我們將繼續執行我們的業務目標並努力實現可持續的長期增長。截至 2022 年 3 月 31 日，Himax 有 174.3 份 ADS 未償，與上一季度持平。在完全稀釋的基礎上，第一季度未償還的 ADS 總數為 1.748 億美元。

Now turning to our second quarter 2022 guidance. We expect second quarter revenue to decline 16% to 20% sequentially. Now IFRS gross margin is expected to be around 43% to 45%, depending on the final product mix. Non-IFRs profit attributable to shareholders is expected to be in the range of $0.45 to $0.50 per fully diluted ADS. IFRS profit attributable to shareholders is estimated to be in the range of $0.415 to $0.465 per fully diluted ADS.

現在轉向我們的 2022 年第二季度指導。我們預計第二季度收入將環比下降 16% 至 20%。現在 IFRS 毛利率預計在 43% 至 45% 左右，具體取決於最終產品組合。股東應佔非國際財務報告準則的利潤預計在每份完全攤薄的美國存託憑證 0.45 美元至 0.50 美元之間。 IFRS 股東應占利潤估計在每份完全攤薄 ADS 0.415 美元至 0.465 美元之間。

I would now like to turn the call to Jordan. Jordan, the floor is yours.

我現在想把電話轉給喬丹。喬丹，地板是你的。

Thank you, Eric. Looking ahead to the second quarter, the host of geopolitical macroeconomic and pandemic-related factors are creating challenges and impairing our near-term outlook.

謝謝你，埃里克。展望第二季度，一系列地緣政治宏觀經濟和大流行相關因素正在帶來挑戰並損害我們的近期前景。

The war in Ukraine, rising inflation and rolling lockdowns throughout China have significantly impacted the supply chain and consumer electronics demand, leading to a particularly abnormal business environment. Murky order visibility is leading to smaller and shorter demand forecast by leading global brands. In response, starting at the end of Q1, panel makers began taking aggressive measures in an attempt to quickly reduce the IC inventories. Against the backdrop of challenging market conditions and short-term uncertainty, for the second quarter, we expect a sequential decline in gross margin, mainly because our cost of goods sold this quarter represents pricing from previous quarters when foundries were still raising their prices.

烏克蘭戰爭、通脹上升和中國各地的滾動封鎖對供應鍊和消費電子產品需求產生了重大影響，導致商業環境異常異常。模糊的訂單可見性導致全球領先品牌的需求預測越來越小。作為回應，從第一季度末開始，面板製造商開始採取積極措施，試圖迅速減少IC庫存。在充滿挑戰的市場條件和短期不確定性的背景下，我們預計第二季度毛利率將連續下降，主要是因為我們本季度的銷售成本代表了前幾個季度的定價，當時代工廠仍在提高價格。

We also have some mild price adjustment in support of our nonautomotive customers amid soft demand worldwide. However, with both foundry and back-end pricing already stabilizing, our cost of goods sales moving into the second half will unlikely continue its upward trend over the first half of the year. As COVID-induced lockdowns begin to fade and supply chain disruptions are alleviated, visibility will improve and ultimately lead to a rebound in market demand. We anticipate Q2 sales to be the low point of this year for full year, despite the murky short-term market condition, we remain upbeat of our top line for 2022, supported by the automotive business and 2 new revenue streams, which all enjoy solid business visibility.

在全球需求疲軟的情況下，我們還進行了一些溫和的價格調整，以支持我們的非汽車客戶。然而，由於代工和後端定價已經穩定，我們進入下半年的商品銷售成本不太可能在上半年繼續保持上升趨勢。隨著 COVID 引起的封鎖開始消退，供應鏈中斷得到緩解，可見度將提高，並最終導致市場需求反彈。我們預計第二季度的銷售額將是今年全年的低點，儘管短期市場狀況不明朗，但在汽車業務和兩個新的收入來源的支持下，我們仍然對 2022 年的收入持樂觀態度，這一切都享有穩健業務可見性。

We now expect our 2022 full year sales to stay at approximately the same high level of 2021. For the automotive business, regardless of the macroeconomic concerns, we are targeting sales to double from last year, which is already more than doubled from the year before. Meanwhile, backed by strong order pipeline, our ultra-low power AI image sensing and OLED business, 2 new sales streams are poised to deliver an impactful contribution. The increased contribution of these key sectors comes with the added benefit of improving our long-term product mix in terms of both profit margin and business visibility.

我們現在預計 2022 年全年銷售額將保持在 2021 年大致相同的水平。對於汽車業務，無論宏觀經濟問題如何，我們的目標是銷售額比去年翻一番，這已經比前一年翻了一倍多.同時，在強大的訂單管道、超低功耗人工智能圖像傳感和 OLED 業務的支持下，兩個新的銷售流有望帶來巨大的貢獻。這些關鍵部門的貢獻增加伴隨著改善我們在利潤率和業務可見性方面的長期產品組合的額外好處。

With that, I will begin with an update on the large panel driver IC business. For the second quarter, large display driver IC revenue is projected to be down double digits sequentially due to production disruptions in the midst of China's lockdowns, coupled with weakness in consumer demand. The outlook for large-sized driver IC business remains murky with moderating TV sell-through and muted Chromebook sales. TV and notebook IC sales are expected to decline double digits sequentially in the second quarter due to customers' inventory control in response to sluggish global demand and reduced business visibility. We expect monitor IC sales to also decline sequentially, reflecting the overall market softness in the second quarter. Yet on a year-over-year basis, monitor IC sales are expected to increase by more than 60%. This demonstrates our leading position across major customers for their higher-end displays and premium monitor models, as well as our ability to offer total solutions covering display drives and advanced Tcons.

有了這個，我將首先介紹大型面板驅動器 IC 業務的最新情況。由於中國封鎖期間生產中斷，加上消費者需求疲軟，預計第二季度大型顯示驅動器 IC 收入將環比下降兩位數。由於電視銷售放緩和 Chromebook 銷售疲軟，大型驅動 IC 業務的前景仍然不明朗。由於客戶控制庫存以應對全球需求低迷和業務能見度下降，預計第二季度電視和筆記本 IC 銷售額將環比下降兩位數。我們預計顯示器 IC 銷售額也將環比下降，反映出第二季度整體市場疲軟。然而，與去年同期相比，監控 IC 銷售額預計將增長 60% 以上。這證明了我們在主要客戶中的高端顯示器和高級顯示器型號的領先地位，以及我們提供涵蓋顯示驅動器和高級 Tcon 的整體解決方案的能力。

Turning to the small and medium-sized display driver IC business. In the second quarter, revenue is expected to decline mid-teens sequentially. Sales for automotive are foreseen to be flat sequentially and up more than 110% year-over-year. Smartphone sales are set to decline single digits sequentially, while sales for tablets are expected to decline by double digit, both due to our customers' efforts to reduce their near-term inventory. The result of the sudden deterioration of focus visibility from their customers on the backdrop of China's ongoing city lockdowns, weaker macroeconomic environment and slowing end market demand. Now for a quick update on each of the major sectors in our small and medium-sized display driver IC business. First, on the automotive segment, as Eric mentioned earlier, automotive overtook other sectors to become our largest revenue contributor during Q1, representing over 25% of our total sales. To elaborate on our success in this core segment, Himax is the market leader in automotive display driver technology with a 40% global market share.

轉向中小型顯示驅動IC業務。在第二季度，收入預計將連續下降十幾歲。預計汽車銷售將環比持平，同比增長超過 110%。智能手機銷量將連續下降個位數，而平板電腦銷量預計將下降兩位數，這都是由於我們的客戶努力減少近期庫存。在中國持續的城市封鎖、疲軟的宏觀經濟環境和終端市場需求放緩的背景下，客戶的關注焦點突然惡化的結果。現在快速了解我們中小型顯示驅動器 IC 業務中每個主要領域的最新情況。首先，在汽車領域，正如 Eric 之前提到的，汽車在第一季度超過其他行業成為我們最大的收入來源，占我們總銷售額的 25% 以上。為了詳細說明我們在這一核心領域的成功，Himax 是汽車顯示驅動器技術的市場領導者，擁有 40% 的全球市場份額。

We boast a comprehensive product portfolio with market leadership ranging from traditional DDIC to new technologies such as TDDI, local dimming, Tcon, LTDI and OLED. Despite strong consumer demand, the global car market continues to suffer from ongoing key component shortages and poor congestion, which are hurting automotive sales worldwide. However, the increase in the number, size and sophistication of displays inside vehicles is evolving at a rapid rate, all indicating much more driver IC content per vehicle. We are uniquely suited to continue to expand our footprint in this lucrative market, backed by secured multi-year foundry capacity and customer purchase agreements, as well as strong design coverage from all major panel houses, Tier- 1s, automotive OEMs. Additionally, we are the pioneer of mass production for TDDI technology that is essential for large-sized interactive, stylish and curved automotive displays.

我們擁有全面的產品組合，從傳統的 DDIC 到 TDDI、局部調光、Tcon、LTDI 和 OLED 等新技術，均具有市場領先地位。儘管消費者需求強勁，但全球汽車市場繼續遭受關鍵零部件短缺和交通擁堵狀況的困擾，這正在損害全球汽車銷售。然而，車內顯示器的數量、尺寸和復雜程度的增加正在快速發展，這一切都表明每輛車的驅動器 IC 內容要多得多。我們非常適合在這個利潤豐厚的市場繼續擴大我們的足跡，得到多年代工能力和客戶採購協議的支持，以及來自所有主要面板製造商、一級供應商、汽車原始設備製造商的強大設計覆蓋率。此外，我們是大規模生產 TDDI 技術的先驅，該技術對於大型交互式、時尚和曲面汽車顯示器至關重要。

While TDDI is still in early stage of mass deployment for automotive market, we already achieved a milestone of over 3 million units shipped in Q1 alone. While continuing to see rapid increases in TDDI design-win coverage across a broad range of automotive customers across the world for the upcoming vehicle models. In addition, our cutting-edge LTDI, which caters to larger than 30-inch displays and incorporate sophisticated touch feature with multi-chip design architecture, is yet another promising product in which we expect to see tremendous long-term results starting from 2023. We expect to double our automotive sales again in 2022 on top of the already strong 2021 sales growth of 111%.

雖然 TDDI 仍處於汽車市場大規模部署的早期階段，但我們已經實現了僅在第一季度出貨量就超過 300 萬台的里程碑。同時繼續看到 TDDI 設計獲勝覆蓋率在全球範圍內廣泛的汽車客戶中對即將推出的車型的覆蓋率迅速增加。此外，我們尖端的 LTDI 可滿足 30 英寸以上的顯示器需求，並將復雜的觸控功能與多芯片設計架構相結合，是另一款有前景的產品，我們預計從 2023 年開始，該產品將取得巨大的長期成果。我們預計，在 2021 年已經強勁的 111% 銷售增長的基礎上，2022 年我們的汽車銷量將再次翻番。

For the second quarter, we expect the automotive DDIC sales, which are still much larger than those of TDDI and AMOLED to be flat to slightly up sequentially, but up more than 90% year-over-year. Our total IC output was adversely impacted by fab maintenance at one of our major foundry suppliers at the end of the first quarter. The maintenance was long overdue because of the heavy backlog of unmet demand. While we expect our automotive DDIC output to increase quarter-over-quarter for the rest of the year, the severe foundry capacity shortage continues to be a constraint for our automotive DDIC business. Q2 sales for automotive TDDI are expected to decline single digits sequentially as a side effect from the Russian-Ukraine War and Chinese city lockdowns, which have led to postponement of certain new projects, mass production timetable.

對於第二季度，我們預計仍遠大於 TDDI 和 AMOLED 的汽車 DDIC 銷售額將持平或環比小幅增長，但同比增長超過 90%。第一季度末，我們的主要代工供應商之一的晶圓廠維護對我們的 IC 總產量產生了不利影響。由於未滿足需求的大量積壓，維護早就應該進行了。雖然我們預計我們的汽車 DDIC 產量將在今年剩餘時間內環比增長，但嚴重的代工產能短缺仍然是我們汽車 DDIC 業務的製約因素。由於俄烏戰爭和中國城市封鎖的副作用，汽車 TDDI 的第二季度銷售額預計將環比下降個位數，這導致某些新項目和大規模生產時間表的推遲。

Nevertheless, we still see extraordinary business momentum into the second half of 2022 for our automotive TDDI. We are well prepared in terms of secured long-term foundry capacity for automotive TDDI, which is on track for exponential growth throughout 2022 and the foreseeable future.

儘管如此，我們仍然看到我們的汽車 TDDI 到 2022 年下半年的非凡業務勢頭。我們為確保汽車 TDDI 的長期代工產能做好了充分準備，該產能有望在 2022 年和可預見的未來呈指數級增長。

Next, regarding smartphone and tablet businesses. The smartphone market continues to be depressed by excess inventory for panel makers, ODMs and brands. Pandemic-induced logistics and supply chain disruptions are also weakening market sentiment, while rising inflation adversely affects household disposable income leading to a prolonged replacement cycle at the consumer end. Against this backdrop, we expect Q2 smartphone IC business to down single digits sequentially. For tablet, we expect sales to fall double digits sequentially from the high base in the first quarter driven by this slowdown in orders as our customers purchase their inventory. In addition, the mass production timetables for some of the new large-sized tablets were postponed due to China lockdowns. With that said, we believe the pandemic has fueled a secular shift towards remote work and e-learning that consequently will keep tablet demand above pre-pandemic levels.

其次，關於智能手機和平板電腦業務。智能手機市場繼續受到面板製造商、ODM 和品牌過剩庫存的抑制。大流行引發的物流和供應鏈中斷也削弱了市場情緒，而通脹上升對家庭可支配收入產生不利影響，導致消費者端的更換週期延長。在此背景下，我們預計第二季度智能手機 IC 業務將環比下降個位數。對於平板電腦，我們預計銷售額將從第一季度的高基數連續下降兩位數，這是由於我們的客戶購買庫存導致訂單放緩。此外，由於中國的封鎖，一些新的大尺寸平板電腦的量產時間表被推遲。話雖如此，我們認為大流行已經推動了向遠程工作和電子學習的長期轉變，從而使平板電腦的需求保持在大流行前的水平之上。

TDDI penetration continues to rise for tablets, which are moving towards larger-sized displays, higher frame rate and particularly active stylus features where we are seeing expanding adoption. Himax still has the leading position in non-iOS tablet market with decent market share. As soon as brands regain confidence in the outlook, we expect our sales momentum to rebound from panel makers, replenishing our inventory and preparing to launch new models. We, therefore, remain positive in our Q3 business outlook with a high likelihood of sequential rebound from the trough of Q2.

平板電腦的 TDDI 滲透率持續上升，這些平板電腦正朝著更大尺寸的顯示器、更高的幀速率和特別是主動觸控筆功能發展，我們看到這些功能正在擴大採用。奇景依然在非iOS平板市場佔據領先地位，市場佔有率不俗。一旦品牌重新對前景充滿信心，我們預計我們的銷售勢頭將從面板製造商那裡反彈，補充我們的庫存並準備推出新型號。因此，我們對第三季度的業務前景保持樂觀，很有可能從第二季度的低谷連續反彈。

Turning to the e-paper driver business, another product in our small and medium-sized driver lineup. Our e-paper business is set to grow more than 120% sequentially, representing around 2% of total sales in Q2. The phenomenal sequential growth stems from increasing demand to a leading customer as well as catch-up shipments that were delayed last quarter due to logistics disruption from the lockdown in China. On a year-over-year basis, e-paper business is expected to increase significantly by around 300% due to a growing number of awarded projects with leading customers for their ASIC product shipment. We continue to collaborate with world-class e-paper customers for certain ASIC projects with increased R&D efforts spent on their next-generation products towards larger size, higher resolution and colored e-paper displays. Backed by long-term supply agreements and lasting partnerships with industry-leading customers, we expect to capture significant market share in the ever expanding e-reading and e-signage markets throughout 2022.

談到電子紙驅動器業務，我們中小型驅動器陣容中的另一個產品。我們的電子紙業務將連續增長 120% 以上，約佔第二季度總銷售額的 2%。顯著的連續增長源於對主要客戶的需求不斷增加，以及由於中國封鎖造成的物流中斷而導致上個季度延遲的補貨。與去年同期相比，電子紙業務預計將顯著增長約 300%，原因是與主要客戶的 ASIC 產品出貨的獲獎項目越來越多。我們繼續與世界一流的電子紙客戶合作開展某些 ASIC 項目，加大研發力度，在他們的下一代產品上投入更大尺寸、更高分辨率和彩色電子紙顯示器。在長期供應協議和與行業領先客戶的持久合作夥伴關係的支持下，我們預計將在整個 2022 年在不斷擴大的電子閱讀和電子標牌市場中佔據重要的市場份額。

Next for an update on AMOLED. In partnerships with major Korean and Chinese panel makers in various applications, we continue to gear up for AMOLED driver IC development. Our AMOLED solution for tablet has commenced mass production starting this quarter where we provide both AMOLED driver and Tcon total solution and are the sole source supplier for a global leading tablet customer. We are working to secure additional capacity to meet the customers' product launch schedule and desired volume. In addition, our flexible AMOLED driver and Tcon for automotive display successfully ramped up for customers' flagship EV model in Q1. Concurrently, the number of awarded projects with worldwide conventional carmakers and EV vendors is increasing.

接下來是關於 AMOLED 的更新。通過與各種應用領域的主要韓國和中國面板製造商合作，我們繼續為 AMOLED 驅動 IC 的開發做準備。我們的平板電腦 AMOLED 解決方案已於本季度開始量產，我們提供 AMOLED 驅動器和 Tcon 整體解決方案，並且是全球領先平板電腦客戶的唯一來源供應商。我們正在努力確保額外的產能，以滿足客戶的產品發布計劃和所需的數量。此外，我們的柔性 AMOLED 驅動器和車用顯示 Tcon 在第一季度成功為客戶的旗艦 EV 車型升級。與此同時，與全球傳統汽車製造商和電動汽車供應商合作的項目數量也在增加。

As for smartphone, we continue to commit R&D resources to AMOLED driver IC through arrangements with top-tier customers. In the light of serious constraints on AMOLED display driver capacity in the next few years, we have secured meaningful capacity in this area with our secured capacity fully booked up by leading panel makers. Finally, for AMOLED TV and notebook sectors, we are encouraged by our progress in the last few quarters with designed made for leading customers and panel houses next-generation products. In the second quarter, our AMOLED business, including key content driver is expected to account for around 4% of total sales and is slated for strong growth in the next few years.

在智能手機方面，我們通過與頂級客戶的安排，繼續致力於AMOLED驅動IC的研發資源。鑑於未來幾年 AMOLED 顯示驅動器產能受到嚴重限制，我們在該領域獲得了可觀的產能，我們的安全產能已被領先的面板製造商完全預訂。最後，對於 AMOLED 電視和筆記本電腦行業，我們對過去幾個季度在為領先客戶和麵板製造商設計下一代產品方面取得的進展感到鼓舞。第二季度，我們的 AMOLED 業務，包括關鍵內容驅動，預計將佔總銷售額的 4% 左右，並預計在未來幾年內實現強勁增長。

Now let me share some of the progress we made on the non-driver IC businesses. Starting with an update on timing controller, we anticipate Q2 Tcon sales to grow low single digit sequentially, a result of higher shipment of Tcon for monitor outlet tablet and automotive sectors. The consumer market continues to expand its appetite towards advanced displays for visual enjoyment and diverse video entertainment. After years of commitment and R&D efforts, we have successfully positioned ourselves towards high-end areas, including 4K/8K TV, high-frame rate gaming monitor, low-power notebook, local dimming Tcon for automotive as well as OLED for tablet and automotive. These high-end areas not only warrant much higher content value on a per panel basis, but also represent the higher barrier to entry for late comers. As OLED displays get traction in the market due to technological advantages, we've been collaborating closely with major panel houses to joint-develop an industry-leading AMOLED tablet display solution. We provide both AMOLED Tcon and drivers with both commencing mass production in Q2.

現在讓我分享一下我們在非驅動IC業務方面取得的一些進展。從時序控制器的更新開始，我們預計第二季度 Tcon 銷售額將環比增長低個位數，這是由於顯示器出口平板電腦和汽車行業的 Tcon 出貨量增加。消費市場繼續擴大其對視覺享受和多樣化視頻娛樂的高級顯示器的需求。經過多年的投入和研發，我們已成功定位於高端領域，包括4K/8K電視、高幀率電競顯示器、低功耗筆記本、車用局部調光Tcon以及平板和車用OLED .這些高端領域不僅保證每個面板的內容價值更高，而且代表了後來者進入的更高門檻。隨著 OLED 顯示器憑藉技術優勢在市場上受到關注，我們一直與主要面板廠密切合作，共同開發行業領先的 AMOLED 平板顯示器解決方案。我們同時提供 AMOLED Tcon 和驅動程序，並在第二季度開始量產。

Additionally, we extended our Tcon product reach from higher-end tablets into notebook sector, where currently, we are initiating projects jointly with panel makers for next-generation premium OLED notebook. We are optimistic about the long-term potential for our Tcon business and continue to look to secure more capacity from our foundry partners in pursuit of sustaining the growth. Switching gears to the ultra-low power AI image sensing total solution, which incorporates Himax ultra-low power CMOS image sensor, our proprietary AI processor and CNN-based AI algorithm. On April 14, our wholly owned subsidiary, Emza, announced that its revolutionary and innovative AI-based visual sensing technology was adopted in a range of Dell's new notebook models.

此外，我們將 Tcon 產品範圍從高端平板電腦擴展到筆記本電腦領域，目前，我們正在與面板製造商聯合啟動下一代高端 OLED 筆記本電腦的項目。我們對 Tcon 業務的長期潛力持樂觀態度，並繼續尋求從我們的代工合作夥伴那裡獲得更多產能，以實現持續增長。轉向超低功耗 AI 圖像傳感整體解決方案，該解決方案包含 Himax 超低功耗 CMOS 圖像傳感器、我們專有的 AI 處理器和基於 CNN 的 AI 算法。 4 月 14 日，我們的全資子公司 Emza 宣布，其革命性和創新的基於 AI 的視覺傳感技術被用於戴爾的一系列新筆記本電腦型號。

The WiseEye AI image sensing solution, which runs Emza's algorithm on Himax's proprietary ultra-low power AI processor and AoS image sensor, features always on ultra-low power contextual-aware vision AI. The solution can detect user engagement levels based on presence, movements and facial direction. This contributes to better laptop power management, maximizing battery lives and ultimately enhancing the laptop's user experience. We are thrilled by this deployment and anticipate continuous market proliferation as we engage in ongoing discussions with worldwide notebook brands and platform partners where the number of design-in projects are increasing as we speak.

WiseEye AI 圖像傳感解決方案在 Himax 專有的超低功耗 AI 處理器和 AoS 圖像傳感器上運行 Emza 算法，始終以超低功耗上下文感知視覺 AI 為特色。該解決方案可以根據存在、運動和麵部方向檢測用戶參與度。這有助於更好地管理筆記本電腦的電源、最大限度地延長電池壽命並最終增強筆記本電腦的用戶體驗。我們對這一部署感到興奮，並預計隨著我們與全球筆記本電腦品牌和平台合作夥伴進行持續的討論，其中設計項目的數量正在增加，因為我們正在談論持續的市場增長。

Another area we are gaining momentum with our AI total solution is the automotive meter reading, sorry, AMR application, where we have seen surging adoption across the continents over the past few quarters. With greater focus on sustainability and environmental consciousness, more countries are devoting resources to water preservation and are eager to implement intelligent water conservation technology. AMR embedded with Himax ultra-low power AI image sensing technology is an ideal fit for this market. Our power-efficient AI solution installed over the existing traditional water meters can automatically collect water consumption data with AI operating locally on the AMR device itself, providing in-time detection of abnormal leakage.

我們的 AI 整體解決方案正在獲得動力的另一個領域是汽車抄表，抱歉，AMR 應用程序，在過去的幾個季度中，我們看到各大洲的採用率激增。隨著對可持續性和環保意識的日益重視，越來越多的國家將資源投入到節水上，並渴望實施智能節水技術。嵌入Himax超低功耗AI圖像傳感技術的AMR非常適合這個市場。我們安裝在現有傳統水錶上的節能人工智能解決方案可以自動收集用水量數據，人工智能在 AMR 設備本身本地運行，及時發現異常洩漏。

So far, we have received most of the inquiries from China where our AI total solution has been widely adopted by numerous customers covering a wide geographical area. Some of these projects were slated for mass production starting in Q1, but subsequently delayed due to the pandemic resurgence. In addition to China, we've also seen a growing number of inquiries from other countries in Asia and Europe as well as India, an indication that our solution is effective, easy to use and affordable for this application. The AMR application is expected to start generating sales in the near future. The rapid advancement of AI over the past few years has expanded both the function and popularity of AI applications that are now finding their way into nearly every business sector. For ultra-low power AI image sensing solution, we are seeing a wide variety of successful use cases and adoption in areas such as panoramic video conferencing, smart parking, fitness equipment, smart agriculture and medical inspection among others.

到目前為止，我們收到了來自中國的大部分諮詢，我們的人工智能整體解決方案已被眾多客戶廣泛採用，覆蓋廣泛的地理區域。其中一些項目原定於第一季度開始量產，但隨後由於大流行病死灰復燃而推遲。除了中國，我們還看到來自亞洲和歐洲其他國家以及印度的越來越多的諮詢，這表明我們的解決方案是有效的、易於使用的並且對於這個應用程序來說是負擔得起的。 AMR 應用程序有望在不久的將來開始產生銷售。過去幾年 AI 的快速發展擴大了 AI 應用程序的功能和普及度，這些應用程序現在幾乎進入了每個業務領域。對於超低功耗人工智能圖像傳感解決方案，我們在全景視頻會議、智能停車、健身設備、智能農業和醫療檢查等領域看到了廣泛的成功用例和採用。

As an illustration, in the area of smart agriculture and environmental protection, our solution was adopted by Seeed Studio, an IoT platform enabler into their 'IoT into the Wild' product launch. We expect to see many more of these types of engagements with mass production in some of these exciting new channels. Lastly, I would like to give an update on our optical related product lines covering WO, LCOS and 3D sensing. On our last earnings call, I provided a brief overview of our optical technology road map and applications in the metaverse market. In short, Himax is at the forefront of this exciting and early-stage industry, having meticulously developed technologies for many years in collaboration with leading companies in the space. We believe our optical technologies, individually or combined, will play a key role in enabling metaverse AR/VR devices.

例如，在智能農業和環境保護領域，我們的解決方案被物聯網平台推動者 Seeed Studio 採用到他們的“IoT into the Wild”產品發布中。我們希望在其中一些令人興奮的新渠道中看到更多此類大規模生產的參與。最後，我想介紹一下我們的光學相關產品線，包括 WO、LCOS 和 3D 傳感。在我們上次的財報電話會議上，我簡要概述了我們的光學技術路線圖和在 Metaverse 市場中的應用。簡而言之，Himax 處於這個令人興奮的早期行業的最前沿，多年來與該領域的領先公司合作精心開發技術。我們相信，我們的光學技術，無論是單獨的還是組合的，都將在啟用 Metaverse AR/VR 設備方面發揮關鍵作用。

Now to provide an update on our progress this quarter. First, on our LCOS micro display. I'm pleased to report that the new LCOS design-win for a projector product from a leading global player. For AR glasses, currently, we have several joint dividend projects underway with leading tech names, some of which is using our cutting-edge front-lit LCOS micro-displays for their next-generation products. front-lit LCOS micro-displays features lightweight, small form factor, high illumination and full RGB color display characteristics, making it ideal for future AR glasses.

現在提供有關我們本季度進展的最新信息。首先，在我們的 LCOS 微型顯示器上。我很高興地向大家報告，來自全球領先廠商的投影機產品的全新 LCOS 設計勝出。對於 AR 眼鏡，目前，我們與領先的科技公司有幾個聯合分紅項目，其中一些正在使用我們最先進的前照式 LCOS 微型顯示器用於他們的下一代產品。前照式 LCOS 微型顯示器具有重量輕、外形小巧、高照度和全 RGB 彩色顯示特性，使其成為未來 AR 眼鏡的理想選擇。

Next on human interface sensing for 3D gesture control. We have several AR/VR projects underway with industry leaders, aiming to achieve immersive and precise controller-free gesture recognition. Moving on to 3D eye-tracking. We're being engaged by some of the leading display companies for the adoption of our 3D eye-tracking technology, which enables immersive 3D naked eye displays free of motion sickness for monitor, notebook and medical applications, plus on 3D scanning and reconstruction. Creating virtual worlds involved huge datasets of 3D image, including avatars, objects and other environmental surroundings and 3D scanning device is required for the purpose of generating these 3D images.

接下來介紹用於 3D 手勢控制的人機界面傳感。我們與行業領導者正在開展多個 AR/VR 項目，旨在實現身臨其境和精確的無控制器手勢識別。繼續進行 3D 眼動追踪。我們正在與一些領先的顯示公司合作，採用我們的 3D 眼動追踪技術，該技術可以在顯示器、筆記本電腦和醫療應用中實現沉浸式 3D 裸眼顯示而不會出現暈動病，以及 3D 掃描和重建。創建虛擬世界涉及大量 3D 圖像數據集，包括化身、物體和其他環境環境，並且需要 3D 掃描設備來生成這些 3D 圖像。

Currently, we have a few projects underway with leading virtual object companies, whose 3D scanning devices adopt Himax proprietary dual 3D sensing architecture to reconstruct 3D virtual objects on a real-time basis. As I mentioned last quarter, metaverse development is still in early stage, yet Himax is well positioned with years of research and development. The strong product portfolio, production history and key partnerships to capitalize on its growth in the years to come. For non-driver IC business, we expect revenue to be up low single digits sequentially in the second quarter.

目前，我們與領先的虛擬物體公司有幾個項目正在進行中，他們的3D掃描設備採用Himax專有的雙3D傳感架構，實時重建3D虛擬物體。正如我在上個季度提到的，元界的開發仍處於早期階段，但 Himax 經過多年的研發已處於有利地位。強大的產品組合、生產歷史和關鍵合作夥伴關係，以利用其在未來幾年的增長。對於非驅動IC業務，我們預計第二季度收入將環比增長低個位數。

That concludes my report for this quarter. Thank you for your interest in Himax. We appreciate your 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 Himax 的關注。感謝您加入今天的電話會議，我們現在準備回答問題。

(Operator Instructions) Your first question comes from the line of Donnie Teng from Nomura.

（操作員說明）您的第一個問題來自野村的 Donnie Teng。

My first question is regarding to our comment on the sales pattern into the second half. So I'm just curious, I know second quarter looks like to be a deep. But for the recovery of third quarter and fourth quarter, you are seeing more like a shipment driven or more like ASP recovery? That's my first question.

我的第一個問題是關於我們對下半年銷售模式的評論。所以我只是好奇，我知道第二季度看起來很深。但是對於第三季度和第四季度的複蘇，您看到更像是出貨驅動還是更像是 ASP 復甦？這是我的第一個問題。

I think it's primarily shipment driven. Tony, I think we actually mentioned that we feel confident that we should be able to achieve at least a flat 2022 total revenue versus the high level of last year. Now how do we arrive at that number and how do we get our confidence? I guess this is another way of addressing your question. Actually, we can conceptually divide our products into 2 groups. The first group being the ones with high visibility. They are automotive, obviously, timing controller, which is very strong visibility. And also, there are the second group. Sorry, that's the first group, right? The first group includes these 2 existing product lines with very strong visibility. And also, we have 2 major new revenue stream kind of product line, right, being AMOLED drivers or related products and also ultra-low power AI sensor, this new revenues, which didn't exist the year before.

我認為主要是出貨驅動。托尼，我認為我們實際上提到了我們有信心，與去年的高水平相比，我們應該能夠至少實現 2022 年的總收入持平。現在我們如何得出這個數字以及我們如何獲得信心？我想這是解決您問題的另一種方式。實際上，我們可以在概念上將我們的產品分為兩組。第一組是具有高知名度的。它們是汽車，顯然，時序控制器，具有很強的可見性。而且，還有第二組。對不起，那是第一組，對吧？第一組包括這兩條現有的產品線，具有很強的知名度。而且，我們有兩個主要的新收入來源類型的產品線，對，是 AMOLED 驅動器或相關產品以及超低功耗 AI 傳感器，這是前一年不存在的新收入。

So that is the first group, right? They enjoy good visibility because of the nature of our product in the industry or because of the fact that they are actually new revenue streams in which we are always the sole source provider where the customer is launching new products. So the visibility for their business plan is actually quite good. Now there are also the second group of products, which are primarily all the consumer electronics, the TVs, computers, cell phones and the like. Honestly, the visibility currently is lower than usual, right? But if I take my existing projection for my customer for the first group, and I put in a number into my whole year's projection. And if I assume my whole year revenue to be flat compared to last year, then that implies the second group, i.e., the low visibility group. The revenue is actually represent a pretty material decline from year-over-year basis.

所以這是第一組，對吧？由於我們產品在行業中的性質，或者因為它們實際上是新的收入來源，我們始終是客戶推出新產品的唯一來源供應商，因此它們享有良好的知名度。所以他們的商業計劃的知名度實際上是相當不錯的。現在還有第二類產品，主要是消費類電子產品，電視、電腦、手機等。老實說，現在的能見度比平時低，對吧？但是，如果我將我現有的客戶預測用於第一組，並在我的全年預測中輸入一個數字。如果我假設我的全年收入與去年相比持平，那麼這意味著第二組，即低能見度組。收入實際上與去年同期相比出現了相當大的下降。

The number -- I mean, obviously, no visibility, being no visibility. That means we don't have a great deal of confidence one way or the other. However, the good news is that we actually recently analyzed customers' inventory level, rather thoroughly and particularly inventory level towards the end of the second quarter across this second group of products. And we come to an easy conclusion that the panel customers' inventory towards the second quarter will be unusually low, right? So while I don't have the crystal ball to predict when and how -- whether China will lift its locked down or whatever. But given the fact that our panel customers shipment during through to the low season are actually slightly down, but they are making regular shipments without major disruption. While their inventory control has resulted in a very, very unusually low inventory level towards the end of the quarter.

數字——我的意思是，很明顯，沒有可見度，沒有可見度。這意味著我們在任何方面都沒有很大的信心。然而，好消息是我們最近實際上分析了客戶的庫存水平，相當徹底，特別是第二組產品的第二季度末庫存水平。我們得出一個簡單的結論，面板客戶第二季度的庫存將異常低，對吧？因此，雖然我沒有水晶球來預測中國何時以及如何解除封鎖或其他什麼。但考慮到我們的面板客戶在淡季期間的出貨量實際上略有下降，但他們在正常出貨，沒有出現重大中斷。雖然他們的庫存控制導致本季度末的庫存水平非常非常低。

Let's give us the good confidence that there's a good likelihood we may see a good rebound from Q3 or at least for the second half. So actually -- so what I'm trying to say is if we predict the whole year revenue to be flat, it actually implies the second group, that will be the visibility consumer electronics group to suffer from a pretty severe decline year-over-year, while we're actually seeing very promising signs that you may actually do better than that. So we are actually targeting or let me say, we actually believe the flat revenue this year versus last year will be a low target for us for this year. And that is basically our analysis. And I'm pretty sure within a month or 2, the visibility for the second group will be much enhanced. And there are a lot of discussions going on with the customers in that regard at the moment.

讓我們充滿信心，我們很可能會從第三季度或至少在下半年看到良好的反彈。所以實際上 - 所以我想說的是，如果我們預測全年收入持平，這實際上意味著第二組，這將是可見度消費電子集團遭受相當嚴重的同比下降 -年，而我們實際上看到了非常有希望的跡象，表明您實際上可能做得更好。所以我們實際上的目標是或者讓我說，我們實際上相信今年與去年持平的收入將是我們今年的低目標。這基本上就是我們的分析。而且我很確定在一兩個月內，第二組的知名度將會大大提高。目前在這方面與客戶進行了很多討論。

And lastly, let me just add the first group, we now only have good visibility from customers, all the visibility. We either have a very strong position on our sole source provider for those products, and we are very much backed by our (inaudible) support. And last but not least, all these products coincidently are still suffering from capacity shortage. That means our supply will still be lower than the demand for the second half, and that is another reason why we feel very confident about the visibility of the first group. So (inaudible) inventory but it's not the ASP driven primarily based on our assumption.

最後，讓我添加第一組，我們現在只有來自客戶的良好知名度，所有的知名度。我們要么在這些產品的唯一來源供應商中擁有非常強大的地位，而且我們的（聽不清）支持非常支持我們。最後但並非最不重要的一點是，所有這些產品不約而同地仍然受到產能不足的困擾。這意味著我們的供應仍將低於下半年的需求，這也是我們對第一組的知名度非常有信心的另一個原因。所以（聽不清）庫存，但它不是主要基於我們假設的 ASP 驅動的。

And the follow-up should be on the gross margin side because it seems like you are like positive from a volume recovery and potentially, as you mentioned, like the first group product like long visibility as well. But for the ASP side or for foundry cost perspective, are we able to like pass the cost to customers or to negotiate the new price with foundries or what kind of normalized the gross margin you're expecting for the second half?

後續行動應該是在毛利率方面，因為看起來你對銷量恢復持積極態度，並且可能，正如你提到的，第一組產品也像長期可見性一樣。但對於 ASP 方面或代工成本方面，我們是否能夠將成本轉嫁給客戶或與代工廠商協商新價格，或者您對下半年的毛利率預期如何？

Well, thank you, Tony. Again, to follow my previous analysis of the second group versus the first group as in second group, the high visibility and no visibility. On the high visibility area, we are certainly not lowering our price in any meaningful way because of the simple fact that we have a very, very strong position. And as I said earlier, the demand still outpaces supply. So there's no reason for us to lower our price, right. The second group low visibility is harder to say, to be honest. Now if I look at the supply side, we have been through at least half year, 2, 4 quarters of rising cost of goods sold that leads directly to our gross margin erosion. So if you look at our second quarter guidance, I can tell you, our guided gross margin decline is pretty much the same as our expected cost of goods sales increase percentage-wise, right? Now how is the cost of goods sold going to be like in the second half? I think we are seeing very much foundry prices have stabilized. And the fact that is that our Q1 and Q2, those are prices fixed much earlier. But because of the production lead time, we are making shipments of those products where the prices were actually fix much earlier when the foundry prices is on its way up constantly.

好吧，謝謝你，托尼。再次，按照我之前對第二組與第一組的分析，就像在第二組中一樣，高能見度和無能見度。在高能見度區域，我們當然不會以任何有意義的方式降低價格，因為我們擁有非常非常強大的位置這一簡單事實。正如我之前所說，需求仍然超過供應。所以我們沒有理由降低我們的價格，對吧。老實說，第二組低能見度很難說。現在，如果我看一下供應方面，我們已經經歷了至少半年、2、4 個季度的銷售成本上升，這直接導致我們的毛利率下降。因此，如果您查看我們的第二季度指導，我可以告訴您，我們的指導毛利率下降與我們預期的商品銷售成本增長百分比幾乎相同，對吧？現在下半年的商品銷售成本將如何？我認為我們看到很多代工價格已經穩定下來。事實上，我們的第一季度和第二季度，這些價格是更早固定的。但是由於生產提前期，當代工價格不斷上漲時，我們正在出貨那些價格實際上更早確定的產品。

But I mean, foundry people also realize the fact that the market is soft right now, the demand is weak. So through our discussions with sponsors, we are not seeing – we are not expecting any meaningful foundry price increase. The same for back end. And if anything, I think we and our peers will try to get a better price for the second half. I mean, certainly, a lot of negotiation going on. I cannot make any promises, but I think that is a trend. So that is on the cost side and on our pricing side, I talked about the high visibility group already. We are not going to lower our price. And selectively, in some selective areas, we may be able to raise our price a bit, I think. On the second group, it's harder to tell the low visibility group. Right now, even during Q2, the very, very bottom season, here and there, small amount of selectively small amount of price downs have been offered to us, but they are in a very limited scope.

但我的意思是，代工們也意識到現在市場疲軟，需求疲軟。因此，通過我們與讚助商的討論，我們沒有看到——我們並不期待任何有意義的代工價格上漲。後端也一樣。如果有的話，我認為我們和我們的同行將努力在下半年獲得更好的價格。我的意思是，當然，很多談判正在進行。我不能做出任何承諾，但我認為這是一種趨勢。所以這是在成本方面和我們的定價方面，我已經談到了高知名度組。我們不會降低價格。我認為，有選擇地，在某些特定領域，我們可能會稍微提高價格。在第二組，更難分辨低能見度組。現在，即使是在第二季度，非常非常低谷的季節，這里和那裡，我們也提供了少量選擇性的少量降價，但它們的範圍非常有限。

What happens is that I think everybody, our customers included, recognize the fact that if you look ahead into next year or the year after, for mature processes, the foundry capacity is still likely to be tight. And I mentioned earlier, right, towards the middle of the year, our customers' inventory level is look to be much lower than normal. So this factor is combined. I think I don't expect any major price fluctuation for the second group even during the second half. And you asked me whether we'll be able to pass through the additional costs? I think there will be no such issue as pass through additional cost because I said earlier in the second half, the cost is unlikely to continue to rise. So I guess our gross margin for the second year will depend largely on our final product mix, which obviously is harder to predict, especially given the fact that, as I mentioned in the second group, the visibility is low. Meaning the revenue, the actual revenue, the actual outcome can come higher or lower than our numbers right now. But I think as a conclusion, we don't expect gross margin to deteriorate in any material way from the level of Q2 or Q1, I think.

發生的情況是，我認為每個人，包括我們的客戶，都認識到一個事實，如果你展望明年或後年，對於成熟的工藝，代工產能可能仍然很緊張。而且我之前提到過，對，到了年中，我們客戶的庫存水平看起來比正常水平低得多。所以這個因素是結合在一起的。我認為即使在下半年，我也不認為第二組的價格會有任何重大波動。你問我是否可以轉嫁額外的費用？我認為不會出現轉嫁額外成本的問題，因為我在下半年早些時候說過，成本不太可能繼續上漲。所以我想我們第二年的毛利率將在很大程度上取決於我們的最終產品組合，這顯然更難預測，特別是考慮到正如我在第二組中提到的那樣，可見度很低。這意味著收入，實際收入，實際結果可能高於或低於我們現在的數字。但我認為作為一個結論，我們預計毛利率不會從第二季度或第一季度的水平以任何實質性方式惡化，我認為。

May I ask one last follow-up is that, what's the sales breakdown you are expecting for the group 1 and group 2 this year?

請問最後一個後續問題是，您對今年第 1 組和第 2 組的銷售細目預期是多少？

Okay, about 4% to 6%. Group 1 being 4, and group 2 being 6. A small correction. 4 to 6 being in the first half, that's the actual number. And in the second half, the first group will outgrow the second group based on our current projection pipeline. So the first group will rise to somewhere around 45%. So it's going to be 45 to 40 against 55. So the whole year will be 40-plus something against 50-plus something.

好的，大約 4% 到 6%。第 1 組為 4，第 2 組為 6。一個小的修正。上半場4比6，這是實際數字。而在下半年，根據我們目前的預測管道，第一組將超過第二組。因此，第一組將上升到 45% 左右。所以這將是 45 到 40 對 55。所以全年將是 40 多對 50 多。

(Operator Instructions) Your next question comes from the line of Jerry Su from Credit Suisse.

（操作員說明）您的下一個問題來自瑞士信貸的 Jerry Su。

I think my first question is regarding your -- I think, Jordan you had mentioned quite a few times about the inventory level as your customers has been -- could be -- go to a pretty low level by the end of this quarter. But when we look at your inventory level in Q1, I think inventory has increased another 25% from 4Q and then more than double from a year ago. So how should we think about your inventory exceeding the second quarter? Are you taking any further steps to control your inventory or you are comfortable with your current inventory level?

我認為我的第一個問題是關於你的 - 我認為，喬丹，你已經多次提到庫存水平，因為你的客戶已經 - 可能 - 在本季度末達到相當低的水平。但是，當我們查看您在第一季度的庫存水平時，我認為庫存比第四季度又增加了 25%，然後比一年前增加了一倍多。那麼我們應該如何看待您的庫存超過第二季度？您是否採取任何進一步的措施來控制您的庫存，或者您對當前的庫存水平感到滿意？

Thank you, Jerry. Let me just say it's not a good idea to compare the inventory level with loss of last year because last year was unhealthy in the sense that we had literally no finished goods inventory, and our customers are chasing us for shortage like on a daily basis, right, from everywhere. So last year's inventory was unusually low and actually unhealthily low. If you look at our history, let's say, we look at the past 5 -- excluding last year, right, our last 5 to 10 years, our inventory days, meaning inventory compared to cost of goods sold, the range is in between 90 to about 110 days. And if you look at our end of Q1, it's 104 days, slightly on the upside, but still within the range, right? So we are not worried about our Q1 inventory because particularly given the fact that we still filling the capacity, foundries capacity will remain short at least in the next year or 2. Now with the expected dip of Q2 revenue, our end of Q2 inventory will still be higher than north of the end of the first quarter. But I said earlier, on the other hand, our customers' inventory level, IC inventory level will be lower than usual.

謝謝你，傑瑞。我只想說，將庫存水平與去年的損失進行比較並不是一個好主意，因為去年是不健康的，因為我們實際上沒有成品庫存，而且我們的客戶每天都在追逐我們的短缺，對，來自任何地方。因此，去年的庫存異常低，實際上低得不健康。如果你看看我們的歷史，比如說，我們看看過去 5 年——不包括去年，對，我們過去 5 到 10 年，我們的庫存天數，即庫存與銷售成本相比，範圍在 90到大約 110 天。如果你看看我們第一季度末的情況，這是 104 天，略有上升，但仍在範圍內，對吧？所以我們並不擔心我們的第一季度庫存，因為特別是考慮到我們仍在填補產能，代工廠產能至少在未來一兩年內仍將保持短缺。現在隨著第二季度收入的預期下降，我們第二季度末的庫存將仍高於一季度末的北方。但我之前說過，另一方面，我們客戶的庫存水平，IC 庫存水平會比平時低。

So I think we are hoping in Q3 or Q4, our inventory level with the 2 factors combined, we'll get back to a more normal status. So for now, we are watching our inventory level, like we are monitoring our -- I mean, I myself is monitoring our inventory level at this weekly basis. So I'm not saying I'm not worried. We are watching it very closely, but there's nothing to indicate that we are reaching a healthy level, so to speak. And in fact, we think it's probably still appropriate that we take a slightly more aggressive inventory preparation approach compared to normal, given the -- our view that the foundry capacity in any foreseeable future will still remain tight.

所以我認為我們希望在第三季度或第四季度，我們的庫存水平與兩個因素相結合，我們會回到更正常的狀態。所以現在，我們正在關注我們的庫存水平，就像我們正在監控我們的 - 我的意思是，我本人正在每週監控我們的庫存水平。所以我並不是說我不擔心。我們正在密切關注它，但沒有任何跡象表明我們正在達到健康水平，可以這麼說。事實上，我們認為，與正常情況相比，我們採取稍微更積極的庫存準備方法可能仍然是合適的，因為我們認為在任何可預見的未來，代工產能仍將保持緊張。

And then just to follow-up on your comments on the foundries. If the foundry supply is going to remain tight for the next few years, why the foundry pricing will not further increase in the second half, especially I think in the past few days, we have saw the news about one of the largest foundry in the world has been raising the price in 2023. So what is your view on the foundry pricing maybe into the second half of next year? Do you expect even if it's going to be flattish later in the year, it could further increase in the longer term?

然後只是跟進您對代工廠的評論。如果未來幾年代工供應仍然緊張，為什麼下半年代工價格不會進一步上漲，尤其是我想這幾天，我們看到了關於中國最大的代工廠之一的消息。 2023年世界一直在提高價格。那麼您對明年下半年的代工定價有何看法？您是否預計即使今年晚些時候會持平，但從長遠來看可能會進一步增加？

I know you're talking about TSMC price. Let's just say TSMC announced publicly and we got a notice as well. Currently, they sent notice at the same time to every customer that's starting the beginning of next year, they're going to raise their price by 6%. Actually, for mature node, that is the node we are in. Ironically, it is actually very good news for Himax because TSMC in mature node, they are actually just playing catch up for pricing. Right now, I mean, it is common market knowledge that TSMC is less expensive. They price their mature node wafers less than literally all their peers. So I'm not going to comment on advanced nodes where TSMC is clearly the leader. But on the mature nodes, TSMC position is not as dominant as their position in advanced nodes. They are actually playing catch-up.

我知道你在談論台積電的價格。就說台積電公開宣布，我們也收到了通知。目前，他們同時向每個客戶發出通知，從明年年初開始，他們將把價格提高6%。其實對於成熟節點，就是我們所處的節點。諷刺的是，這對奇景來說其實是一個非常好的消息，因為台積電在成熟節點，其實只是在打價格戰。現在，我的意思是，眾所周知，台積電的成本較低。他們對成熟節點晶圓的定價低於所有同行。所以我不打算評論台積電顯然是領導者的先進節點。但在成熟節點上，台積電的地位不如他們在先進節點上的地位。他們實際上是在追趕。

And our exposure to TSMC compared to our peers, we are the lowest, meaning we are using other foundries more heavily compared to our peers. That actually implies that historically compared to our competitors, our cost burden is actually higher, right? Now the reason why I say it's good news for us is not really about comparing with our competitors. It's mainly because we are hoping through TSMC raising their price, they will be able to squeeze out those weaker demands. And I just mentioned the first group against second group, right? A good portion of the first group, especially the OLED products, the ultra-low power AI sensor products, we are using TSMC heavily. And we are suffering still pretty big time from shortage. And we are hoping through TSMC's raising their price, they get to squeeze out some of the weaker demand that we can enjoy business supply where we actually welcome such price increase. And whether we will decide to pass it on to our customers is our core. But I think at the moment, to get more supplier from TSMC is far more important than price.

與同行相比，我們對台積電的曝光率最低，這意味著與同行相比，我們更多地使用其他代工廠。這實際上意味著，從歷史上看，與我們的競爭對手相比，我們的成本負擔實際上更高，對吧？現在，我之所以說這對我們來說是個好消息，並不是真的要與我們的競爭對手進行比較。這主要是因為我們希望通過台積電提高價格，他們將能夠擠出那些較弱的需求。我剛剛提到了第一組對抗第二組，對吧？第一組很大一部分，特別是OLED產品，超低功耗AI傳感器產品，我們大量使用台積電。而且我們仍然遭受著相當長的時間短缺。我們希望通過台積電提高價格，他們能夠擠出一些疲軟的需求，我們可以享受商業供應，我們實際上歡迎這樣的價格上漲。而我們是否會決定將其傳遞給我們的客戶是我們的核心。但我認為目前，從台積電那裡獲得更多供應商遠比價格重要。

Now get back to your question. So TSMC's being able to raise their price, does that mean the whole industry will follow suit? Again, they are playing catch-up. And I think everybody knows that. So I'm certainly hoping and I don't believe other foundries for their mature nodes will follow TSMC's price hike, further price hike because they've already had their price hike much earlier on. And I mean, again, everybody recognize the market demand is soft. And foundries customers, guys like us are having a harder time passing on the cost to our customers because there's only so much the customer can take. So I think for the industry to remain healthy in the long-term, through my various discussions with different foundries, I think the consensus is pretty clear so far to me that people are just going to stay put on pricing for the remainder of the year.

現在回到你的問題。那麼台積電能夠漲價，是不是意味著整個行業都會效仿呢？再次，他們正在追趕。我想每個人都知道這一點。所以我當然希望並且我不相信其他成熟節點的代工廠會跟隨台積電的漲價，進一步漲價，因為他們已經在更早的時候漲價了。我的意思是，每個人都承認市場需求疲軟。而代工廠客戶，像我們這樣的人很難將成本轉嫁給我們的客戶，因為客戶只能拿走這麼多。因此，我認為為了讓行業長期保持健康，通過我與不同代工廠的各種討論，我認為到目前為止我的共識非常明確，人們將在今年剩餘的時間裡保持定價.

I mean, unless there's a major market rebound, right? That is then maybe another story because again, the foundry in the foreseeable future, I think, at least 1 to 2 years for mature nodes is going to still be tight.

我的意思是，除非市場出現重大反彈，對吧？那可能是另一個故事，因為在可預見的未來，鑄造廠，我認為，至少 1 到 2 年的成熟節點仍然會很緊張。

Then maybe just one other question, if I may. Regarding the current competition landscape, what are you seeing for the competition coming from the Chinese foundries? I think, especially during the foundry supply constraint on this kind of environment, do you think Chinese outlet, they can come in and then create more impacted volatility or take share from the existing [IT] players?

那麼也許只是另一個問題，如果可以的話。對於當前的競爭格局，您如何看待來自中國代工廠的競爭？我認為，尤其是在這種環境下代工供應受限的情況下，你認為中國的出口，他們可以進來，然後創造更大的波動性，或者從現有的 [IT] 玩家那里分一杯羹嗎？

I think there is no straight answer, simple answer to cover all sectors. It varies depending on the sector. For example, automotive, where we enjoy the best position, there's very, very little, if any, Chinese presence. It's a much harder -- much higher (inaudible) area and it takes much longer to see even any revenue contribution, right? So I think for various reasons, that is not their priority. So we feel little stress from there. For consumer electronics, I think their presence is much less in the areas of notebook and monitor and more in the area of smartphone and TV. For the simple reason that with smartphone and TV, there is a very strong Chinese brand name presence in the marketplace compared to those in notebook and monitor, right? So I think they came in easier through TV and smartphone because they probably get better support from the end customer. So I think those 2 areas, honestly, especially on the low-end market, there will be more competition. But I think our presence, certainly, we enjoy the best presence and highest presence in automotive. And we also enjoy a very good presence in monitor, probably to a slightly lesser extent in notebook, but our shares in notebook are still increasing. Our presence honestly speaking, is lowest in smartphone. This actually being one of the reason. And certainly, we mentioned repeatedly in the previous earnings call, our presence is lower in smartphone than before right now because we are limited by capacity. So with the limited capacity, we are allocating more capacity to support tablet compared to smartphone.

我認為沒有直接的答案，簡單的答案可以涵蓋所有領域。它因行業而異。例如，在我們享有最佳地位的汽車領域，中國的存在非常非常少，如果有的話。這是一個更難——更高（聽不清）的領域，甚至需要更長的時間才能看到任何收入貢獻，對吧？所以我認為出於各種原因，這不是他們的優先事項。所以我們從那裡感到壓力很小。對於消費電子產品，我認為它們在筆記本和顯示器領域的存在要少得多，而在智能手機和電視領域則更多。原因很簡單，與筆記本電腦和顯示器相比，智能手機和電視在市場上的中國品牌佔有率非常高，對吧？所以我認為他們通過電視和智能手機更容易進入，因為他們可能會從最終客戶那裡得到更好的支持。所以我認為這兩個領域，老實說，尤其是在低端市場，會有更多的競爭。但我認為我們的存在，當然，我們在汽車領域享有最好的存在和最高的存在。而且我們在顯示器方面也有很好的存在感，在筆記本方面可能略遜一籌，但我們在筆記本方面的份額仍在增加。老實說，我們的存在感在智能手機中是最低的。這實際上是原因之一。當然，我們在之前的財報電話會議中反复提到，我們現在在智能手機中的存在比以前低，因為我們受到產能的限制。因此，由於容量有限，與智能手機相比，我們分配了更多容量來支持平板電腦。

We state again less Chinese presence compared to smartphone and brand names, right. I think we are going to regain our smartphone presence once we start the AMOLED driver IC production, which we feel pretty good about. It will still take a little bit of time, but I think that is our strategy. We only come back hopefully with more presence once we start AMOLED. But with traditional TDDI, it's pretty bloody competition right now.

我們再次聲明，與智能手機和品牌相比，中國的存在更少，對。我認為一旦我們開始生產 AMOLED 驅動 IC，我們將重新獲得智能手機的存在，我們對此感覺非常好。這仍然需要一點時間，但我認為這是我們的策略。一旦我們開始 AMOLED，我們只會希望有更多的存在。但是對於傳統的 TDDI，現在的競爭非常激烈。

There are no further questions at this time. You may continue.

目前沒有其他問題。你可以繼續。

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

謝謝你，接線員。最後，我們的首席 IR/PR 官 Eric Li 將維持投資者營銷活動並繼續參加投資者會議。我們將在它們出現時公佈細節。謝謝你，祝你有美好的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。