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What changed in Himax Technologies, Inc.'s 20-F — 2022 vs 2023

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Paragraph-level year-over-year comparison of Himax Technologies, Inc.'s 2022 and 2023 20-F annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+415 added−403 removedSource: 20-F (2024-04-02) vs 20-F (2023-04-06)

Top changes in Himax Technologies, Inc.'s 2023 20-F

415 paragraphs added · 403 removed · 307 edited across 6 sections

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed0 unchanged
Biggest changeITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 7 ITEM 3. KEY INFORMATION 7 3.A. [Reserved] 7 3.B. Capitalization and Indebtedness 7 3.C. Reason for the Offer and Use of Proceeds 7 3.D. Risk Factors 7 ITEM 4. INFORMATION ON THE COMPANY 22 4.A. History and Development of the Company 22 4.B. Business Overview 23 4.C. Organizational Structure 51 4.D.
Biggest changeITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 7 ITEM 3. KEY INFORMATION 7 3.A. [Reserved] 7 3.B. Capitalization and Indebtedness 7 3.C. Reason for the Offer and Use of Proceeds 7 3.D. Risk Factors 7 ITEM 4. INFORMATION ON THE COMPANY 22 4.A. History and Development of the Company 22 4.B. Business Overview 23 4.C. Organizational Structure 54 4.D.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

74 edited+5 added−12 removed154 unchanged
Biggest changeTechnological innovation may reduce the number of display drivers typically required for each panel, thereby reducing the number of display drivers we are able to sell per panel. If such a reduction in demand is not offset by the general growth of the industry, our market share or average selling prices, or our revenues may decline.
Biggest changeIf such a reduction in demand is not offset by the general growth of the industry, our market share or average selling prices, or our revenues may decline. In order to reduce costs, Panel Manufacturers generally seek to have display drivers with higher channel counts and new panel designs to reduce the number of display drivers required for each panel.
Our AoS CMOS image sensor is designed with proprietary architectures, readout, pixel, where the corresponding algorithms are integrated to contribute the always-on feature that consumes only several micro watts to enable people detection, eyeball tracking and many other features.
Our AoS CMOS image sensor is designed with proprietary architectures, readout, and pixel, where the corresponding algorithms are integrated to contribute the always-on feature that consumes only several micro watts to enable people detection, eyeball tracking and many other features.
Therefore, suppliers could be in a better position to bargain for higher prices, longer contract terms, higher deposit and/or higher contract breach penalties for their services and products, which could result in an increase in our average unit cost and/or penalty expenses.
Therefore, suppliers could be in a better position to bargain for higher prices, longer contract terms, higher deposit and/or higher contract breach penalties for their services and products, which could result in an increase in our average unit cost and/or penalty expenses.
Further, our customers’ business performance may fluctuate significantly due to a number of factors, many of which are beyond their control, including and not limited to: (1) consumer demand and the general economic conditions, such as recent geopolitical tensions relating to invasion of Ukraine by Russia and China city lockdowns due to Covid mandates; (2) the cyclical nature of the TFT-LCD industry in average selling price fluctuations, as well as its downstream industries; (3) the speed at which TFT-LCD panel manufacturers expand production capacity; (4) brand companies’ continued needs for original equipment manufacturing services provided by TFT-LCD panel manufacturers; (5) access to raw materials, components, equipment and utilities on a timely and economical basis; (6) technological changes; (7) the rescheduling and cancellation of large orders; (8) access to funding on satisfactory terms; and (9) fluctuations in the currencies of TFT-LCD panels exporting countries against the U.S. dollar.
Further, our customers’ business performance may fluctuate significantly due to a number of factors, many of which are beyond their control, including and not limited to: (1) consumer demand and the general economic conditions, such as recent geopolitical tensions relating to invasion of Ukraine by Russia and China city lockdowns due to Covid mandates; (2) the cyclical nature of the TFT-LCD and OLED industry in average selling price fluctuations, as well as its downstream industries; (3) the speed at which Panel Manufacturers expand production capacity; (4) brand companies’ continued needs for original equipment manufacturing services provided by Panel Manufacturers; (5) access to raw materials, components, equipment and utilities on a timely and economical basis; (6) technological changes; (7) the rescheduling and cancellation of large orders; (8) access to funding on satisfactory terms; and (9) fluctuations in the currencies of TFT-LCD and OLED panels exporting countries against the U.S. dollar.
Any potential intellectual property litigation also could force us to do one or more of the following: (1) cease and desist and/or stop selling products or using technology or manufacturing processes that contain the allegedly infringing intellectual property; (2) pay damages to the party claiming infringement; (3) attempt to obtain a license for the relevant intellectual property, which may not be available on commercially reasonable terms or at all; and (4) attempt to redesign those products that contain the allegedly infringing intellectual property with non-infringing intellectual property, which may not be possible.
Any potential intellectual property litigation also could force us to do one or more of the following: (1) desist and stop selling products or using technology or manufacturing processes that contain the allegedly infringing intellectual property; (2) pay damages to the party claiming infringement; (3) attempt to obtain a license for the relevant intellectual property, which may not be available on commercially reasonable terms or at all; and (4) attempt to redesign those products that contain the allegedly infringing intellectual property with non-infringing intellectual property, which may not be possible.
Our WiseEye AI total solution had already been adopted by one global leading notebook vendor and went into mass production from early 2022. We also see growing adoption of our WiseEye technology in a broad range of applications, covering shared bike parking, automotive, door lock, battery-powered surveillance camera, panoramic video conferencing, and medical capsule endoscope among others.
Our WiseEye AI solution had already been adopted by one global leading notebook vendor and went into mass production from early 2022. We also see growing adoption of our WiseEye technology in a broad range of applications, covering shared bike parking, automotive, door lock, battery-powered surveillance camera, panoramic video conferencing, and medical capsule endoscope among others.
Since 2020, due to the pandemic lockdown, the work-from-home and learn-from-home new lifestyles triggered increasing demands for display and display drivers related products. The surging demand in display drivers caused the severe foundry capacity shortage, while the industry has no major expansion plan especially on the mature nodes we are primarily anchored to.
However, since 2020, due to the pandemic lockdown, the work-from-home and learn-from-home new lifestyles triggered increasing demands for display and display drivers related products. The surging demand in display drivers caused the severe foundry capacity shortage, while the industry has no major expansion plan especially on the mature nodes we are primarily anchored to.
If we are unable to transfer any increase in average unit cost to our customers, our gross margin and results of operations could be adversely affected. We derive the majority of our net revenues from sales to the TFT-LCD panel industry, which is highly cyclical and subject to price fluctuations.
If we are unable to transfer any increase in average unit cost to our customers, our gross margin and results of operations could be adversely affected. We derive the majority of our net revenues from sales to the TFT-LCD and OLED panel industry, which is highly cyclical and subject to price fluctuations.
The average selling prices of TFT-LCD panels generally decline with time as a result of, among other factors, drop in demand for end products that incorporate TFT LCD panels, new capacity ramp-up or factory utilization improvement, technological advancements and cost reduction with the exception of the new high end and high-resolution products.
The average selling prices of TFT-LCD and OLED panels generally decline with time as a result of, among other factors, drop in demand for end products that incorporate TFT LCD and OLED panels, new capacity ramp-up or factory utilization improvement, technological advancements and cost reduction with the exception of the new high end and high-resolution products.
Additionally, purchase order cancelations or negative alternation by customers may lead to a reduction in future earnings or cash flows subject to each event. Our corporate actions are substantially controlled by officers, directors and affiliated entities who may take actions that are not in, or may conflict with, our or our public shareholders’ interests.
Additionally, purchase order unissued, cancelations or negative alternation by customers may lead to a reduction in future earnings or cash flows subject to each event. Our corporate actions are substantially controlled by officers, directors and affiliated entities who may take actions that are not in, or may conflict with, our or our public shareholders’ interests.
These inventory risks are exacerbated by the high level of customization of our products, which limits our ability to sell excess inventory to other customers, which could eventually lead to write-down of these excess inventory. If we do not achieve additional design wins in the future, our ability to grow will be limited.
These inventory risks are exacerbated by the high level of customization of our products, which limits our ability to sell excess inventory to other customers, which could eventually lead to write-down of these excess inventories. If we do not achieve additional design wins in the future, our ability to grow will be limited.
However, we could not assure you the success of our AMOLED driver IC as we are unable to penetrate into the mass volume existing Korean and China supplier chain and/or find new AMOLED panel manufactures to design-wins our solutions into.
However, we could not assure you of the success of our AMOLED driver IC as we are unable to penetrate into the mass volume existing Korean and China supplier chain and/or find new OLED panel manufactures to design-wins our solutions into.
As a result, the cyclicality of the TFT-LCD panel industry could adversely affect our revenues, cost of revenues and results of operations. 7 Table of Contents Our strategy of expanding our product offerings to non-driver products may not be successful.
As a result, the cyclicality of the TFT-LCD and OLED panel industry could adversely affect our revenues, cost of revenues and results of operations. 7 Table of Contents Our strategy of expanding our product offerings to non-driver products may not be successful.
Failure to grow or maintain our revenues generated from the sales of display drivers could adversely and materially affect our results of operations and financial condition. We face risks related to public health epidemics, including the recent novel coronavirus outbreaks.
Failure to grow or maintain our revenues generated from the sales of display drivers could adversely and materially affect our results of operations and financial condition. We face risks related to public health epidemics, including the novel coronavirus outbreaks.
We depend on sales of display drivers used in TFT-LCD panels, and the limited potential for further growth in both the market size of display drivers and the market share of our display drivers or the absence of continued market acceptance of our display drivers could limit our growth in revenues or harm our business.
We depend on sales of display drivers used in TFT-LCD and OLED panels, and the limited potential for further growth in both the market size of display drivers and the market share of our display drivers or the absence of continued market acceptance of our display drivers could limit our growth in revenues or harm our business.
TFT-LCD panel manufacturers, including our customers, experience significant pressure on prices and profit margins, due largely to growing industry capacity and fluctuations in demand for TFT-LCD panels.
Panel Manufacturers, including our customers, experience significant pressure on prices and profit margins, due largely to growing industry capacity and fluctuations in demand for TFT-LCD and OLED panels.
As of March 31, 2023, we are not aware of any material cyberattacks or incidents that had or would be expected to have a materially adverse effect on our business and operations, nor had we been involved in any legal proceedings or regulatory investigations related thereto. Our data centers are subject to the risk of break-ins and sabotage.
As of March 31, 2024, we are not aware of any material cyberattacks or incidents that had or would be expected to have a materially adverse effect on our business and operations, nor had we been involved in any legal proceedings or regulatory investigations related thereto. Our data centers are subject to the risk of break-ins and sabotage.
The outcome of a dispute may result in our need to develop non-infringing technology or enter into royalty or licensing agreements. We have to undertake the contractual and tort liabilities in applicable law jurisdictions, and we have agreed to indemnify certain customers for certain claims of infringement arising out of the sale of our products.
The outcome of a dispute may result in our need to develop non-infringing technology or enter into royalty or licensing agreements. We have to undertake the contractual obligations, product liabilities and tort liabilities in applicable law jurisdictions, and we have agreed to indemnify certain customers for certain claims of infringement arising out of the sale of our products.
If we borrow funds to finance acquisitions, such debt instruments may contain restrictive covenants that can, among other things, restrict us from distributing dividends. 15 Table of Contents System security risks, data protection breaches or unexpected system outage or failures could impact our business.
If we borrow funds to finance acquisitions, such debt instruments may contain restrictive covenants that can, among other things, restrict us from distributing dividends. 15 Table of Contents System security risks, data protection breaches or unexpected system outages or failures could impact our business.
TFT-LCD panel manufacturers have developed several panel designs to reduce the usage of display drivers, including gate in panel, or GIP, amorphous silicon gate, or ASG, or simply gateless designs, which integrate the gate driver function onto the glass and eliminate the need for gate drivers, as well as dual gate and triple gate panel designs, which would largely reduce the usage of source drivers.
Panel Manufacturers have developed several panel designs to reduce the usage of display drivers, including gate in panel, or GIP, amorphous silicon gate, or ASG, or simply gateless designs, which integrate the gate driver function onto the glass and eliminate the need for gate drivers, as well as dual gate and triple gate panel designs, which would largely reduce the usage of source drivers.
As of March 31, 2023, Jordan Wu and Dr. Biing-Seng Wu (who are brothers) beneficially owned approximately 2.1% and 22.0% of our ordinary shares, respectively. For information relating to the beneficial ownership of our ordinary shares, see “Item 7.A.
As of March 31, 2024, Jordan Wu and Dr. Biing-Seng Wu (who are brothers) beneficially owned approximately 2.1% and 22.0% of our ordinary shares, respectively. For information relating to the beneficial ownership of our ordinary shares, see “Item 7.A.
The TFT-LCD panel industry is intensely competitive and is vulnerable to cyclical market conditions.
The TFT-LCD and OLED panel industry is intensely competitive and is vulnerable to cyclical market conditions.
We may have to seek alternative foundries, which may not be available on commercially reasonable terms, or which may expose us to qualifying-new-foundry risks, as further discussed below. We use several foundries for different semiconductor products, and certain of our products are manufactured at only one of these foundries.
We may have to seek alternative foundries, which may not be available on commercially reasonable terms, or which may expose us to qualifying-new-foundry risks, as further discussed below. 10 Table of Contents We use several foundries for different semiconductor products, and certain of our products are manufactured at only one of these foundries.
However, there can be no assurance that we will not be subject to more requirements under the ES Act. Uncertainties over the interpretation and implementation of the ES Act may have an adverse impact on our business and operations. 19 Table of Contents Risks Relating to Our ADSs and Our Trading Market The market price for our ADSs is volatile.
However, there can be no assurance that we will not be subject to more requirements under the ES Act. Uncertainties over the interpretation and implementation of the ES Act may have an adverse impact on our business and operations. Risks Relating to Our ADSs and Our Trading Market The market price for our ADSs is volatile.
Moreover, several TFT-LCD and AMOLED panel manufacturers have in-house design capabilities and therefore may not need to source semiconductor products from us. If our customers successfully develop in-house capabilities to design and develop semiconductors that can substitute for our products, they would likely reduce or stop purchasing our products.
Moreover, several Panel Manufacturers have in-house design capabilities and therefore may not need to source semiconductor products from us. If our customers successfully develop in-house capabilities to design and develop semiconductors that can substitute for our products, they would likely reduce or stop purchasing our products.
The rights of shareholders and the fiduciary responsibilities of directors under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, the Cayman Islands have a less developed body of securities law than the United States. ​ 21 Table of Contents
The rights of shareholders and the fiduciary responsibilities of directors under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, the Cayman Islands have a less developed body of securities law than the United States.
On 3D sensing business, we focus on Structured Light and ToF 3D module solution and 3D decoder ASIC key component, aiming at emerging markets such as facial recognition-based e-payment, business access control, biomedical inspection device, eye-tracking and gesture control applications.
On 3D sensing business, we focus on Structured Light and ToF 3D module solution and 3D decoder ASIC key component, aiming at emerging markets such as facial recognition-based e-payment, business access control, biomedical inspection device, 3D naked-eye display, eye-tracking, and hand gesture control applications.
Accordingly, holders of our ADSs may be unable to participate in our rights offerings and may experience dilution in their holdings as a result. 20 Table of Contents You may be subject to limitations on transfer of your ADSs. Your ADSs represented by the ADRs are transferable on the books of the depositary.
Accordingly, holders of our ADSs may be unable to participate in our rights offerings and may experience dilution in their holdings as a result. You may be subject to limitations on transfer of your ADSs. Your ADSs represented by the ADRs are transferable on the books of the depositary.
The anticipated demand for our products may not materialize; therefore, manufacturing based on customer forecasts exposes us to risks such as high inventory carrying costs, increased product obsolescence, erosion of the products’ market value as well as penalty incurred from unfulfillment of committed orders from capacity agreement with Company’s foundries and backend suppliers.
The anticipated demand for our products may not materialize; therefore, manufacturing based on customer forecasts exposes us to risks such as high inventory carrying costs, increased product obsolescence, erosion of the products’ market value as well as penalties incurred from unfulfillment of committed orders from capacity agreements with the Company’s foundries and backend suppliers.
Our two largest customers together accounted for over 40% of our revenues in 2022. See “Item 5.A. Operating Results—Description of Certain Statements of Profit or Loss Line Items—Revenues” for our revenues description. Our results of operations and financial condition would be significantly linked to the success and purchase policy of any such customer.
Our two largest customers together accounted for over 39% of our revenues in 2023. See “Item 5.A. Operating Results—Description of Certain Statements of Profit or Loss Line Items—Revenues” for our revenues description. Our results of operations and financial condition would be significantly linked to the success and purchase policy of any such customer.
To manufacture our display drivers used in TFT-LCD and AMOLED panels, we require foundries with high-voltage CMOS manufacturing process capacity.
To manufacture our display drivers used in TFT-LCD and OLED panels, we require foundries with high-voltage CMOS manufacturing process capacity.
There are multiple AMOLED projects under development jointly with worldwide leading panel makers for other applications, including smart phones, TV, notebook PCs and many others. The growth momentum in AMOLED driver ICs and TCON is promising, but the risk of high dependency on limited customer base amid current macro uncertainty might result in fluctuation in sales performance.
In addition, there are multiple AMOLED projects under development jointly with worldwide leading panel makers for other applications, including smart phones, TV, notebook PCs and many others. The growth momentum in AMOLED solution is promising, but the risk of high dependency on limited customer base amid current macro uncertainty might result in fluctuation in sales performance.
As of December 31, 2022, our accounts receivable from Customer A and its affiliates were $82.1 million, which represented approximately 31.5% of our accounts receivable, net. The concentration of our accounts receivable exposes us to increased credit risk. Moreover, we have at times agreed to extend the payment terms for certain of our customers.
As of December 31, 2023, our accounts receivable from Customer A and its affiliates were $67.1 million, which represented approximately 28.5% of our accounts receivable, net. The concentration of our accounts receivable exposes us to increased credit risk. Moreover, we have at times agreed to extend the payment terms for certain of our customers.
For example, in December 2022, approximately 61% of our operating expenses were denominated in NT dollars, with a small percentage denominated in Japanese Yen, Korean Won and Chinese Renminbi, and the majority of the remainder in U.S. dollars.
For example, in December 2023, approximately 70% of our operating expenses were denominated in NT dollars, with a small percentage denominated in Japanese Yen, Korean Won and Chinese Renminbi, and the majority of the remainder in U.S. dollars.
Certain of our competitors have established or may establish strategic or strong relationships with TFT-LCD and AMOLED panel manufacturers that are also our existing or potential customers. Marketing our display drivers to such TFT-LCD and AMOLED panel manufacturers that have established relationships with our competitors may be difficult.
Certain of our competitors have established or may establish strategic or strong relationships with Panel Manufacturers that are also our existing or potential customers. Marketing our display drivers to such Panel Manufacturers that have established relationships with our competitors may be difficult.
If such disruption of operation at our customers’ facilities and our customers may be required to shut down temporarily or to substantially reduce the operations of their fabs, these would seriously affect demand for our products. 17 Table of Contents Disruptions in Taiwan’s political environment could negatively affect our business and ADSs market price.
If such disruptions of operation occur at our customers’ facilities and our customers may be required to shut down temporarily or to substantially reduce the operations of their fabs, these events would seriously affect demand for our products. Disruptions in Taiwan’s political environment could negatively affect our business and ADSs market price.
Climate change concerns has led to international legislative and regulatory initiatives directed at limiting carbon dioxide and other greenhouse gas emissions.
Climate change concerns have also led to international legislative and regulatory initiatives directed at limiting carbon dioxide and other greenhouse gas emissions.
Such cyclicality and price fluctuations could negatively impact our business or results of operations. In 2021 and 2022, 88.0% and 86.8% of our revenues, respectively, were attributable to display drivers that were incorporated into TFT-LCD panels. We expect to continue to substantially depend on sales to the TFT-LCD panel industry for the foreseeable future.
Such cyclicality and price fluctuations could negatively impact our business or results of operations. In 2022 and 2023, 86.8% and 85.1% of our revenues, respectively, were attributable to display drivers that were incorporated into TFT-LCD and OLED panels. We expect to continue to substantially depend on sales to the TFT-LCD and OLED panel industry for the foreseeable future.
In 2021 and 2022, 88.0% and 86.8% of our revenues, respectively, were from the sale of display drivers used for large, small and medium-sized applications, and we expect to continue to derive a substantial portion of our revenues from these or related products.
In 2022 and 2023, 86.8% and 85.1% of our revenues, respectively, were from the sale of display drivers used for large, small and medium-sized applications, and we expect to continue to derive a substantial portion of our revenues from these or related products.
Proposed and existing efforts to address climate change by reducing greenhouse gas emissions could directly or indirectly affect our costs of compliance, including costs associated with changes to manufacturing processes or the procurement of raw materials used in manufacturing processes, increased capital expenditures to improve facilities and equipment, and higher compliance and energy costs to reduce emissions, as well as increased indirect costs resulting from our customers, suppliers or both incurring additional compliance costs that are passed on to us, which could harm our business and financial results by increasing our expenses or requiring us to alter our operations and product design activities.
Proposed and existing efforts to address climate change by reducing greenhouse gas emissions could directly or indirectly affect our costs of compliance, including costs associated with changes to manufacturing processes or the procurement of raw materials used in manufacturing processes, increased capital expenditures to improve facilities and equipment, and higher compliance and energy costs to reduce emissions, as well as increased indirect costs resulting from our customers, suppliers or both incurring additional compliance costs that are passed on to us, which could harm our business and financial results by increasing our expenses or requiring us to alter our operations and product design activities. 17 Table of Contents In addition, climate change could cause certain natural disasters to occur more frequently or with greater intensity.
The concentration of our revenues and accounts receivable and the extension of payment terms for certain of our customers exposes us to increased credit risk and could harm our operating results and cash flows. In 2022, Customer A and its affiliates accounted for 32.3% of our revenues.
The concentration of our revenues and accounts receivable and the extension of payment terms for certain of our customers exposes us to increased credit risk and could harm our operating results and cash flows. In 2023, Customer A and its affiliates accounted for 28.7% of our revenues.
The market price of our ADSs could decline as a result of sales of ADSs or shares or the perception that these sales could occur. As of March 31, 2023, we had 348,833,050 outstanding shares and a significant number of our shares were beneficially owned by certain major shareholders such as our directors and executive officers. See “Item 7.A.
The market price of our ADSs could decline as a result of sales of ADSs or shares or the perception that these sales could occur. As of March 31, 2024, we had 349,448,102 outstanding shares and a significant number of our shares were beneficially owned by certain major shareholders such as our directors and executive officers. See “Item 7.A.
We have been increasingly selling our products to customers in the PRC. In 2021 and 2022, approximately 81.5% and 77.0% of our revenues, respectively, were from customers headquartered in the PRC. We expect to continue to increase our sales to customers in the PRC in the future.
We have been increasingly selling our products to customers in the PRC. In 2022 and 2023, approximately 77.0% and 76.2% of our revenues, respectively, were from customers headquartered in the PRC. We expect to continue to increase our sales to customers in the PRC in the future.
Our financial condition and results of operations may be adversely affected if a public health epidemic interferes with our ability, or that of our employees, suppliers, customers and other business partners to perform our and their respective responsibilities and obligations related to the conduct of our business.
Our financial condition and results of operations may be adversely affected if a public health epidemic, such as the global Covid-19 pandemic, interferes with our ability, or that of our employees, suppliers, customers and other business partners to fulfill our and their respective responsibilities and obligations related to the conduct of our business.
The marketplace is increasing utilization of the AMOLED display for smartphone and other consumer electronics due to expanded AMOLED capacity. We continue to gear up for the AMOLED driver IC development in partnership with major Chinese and Korean panel makers.
The marketplace is increasing utilization of the OLED display for smartphone and other electronics areas, including notebook, tablet, TV and automotive due to expanded OLED capacity. We continue to gear up for the AMOLED driver IC development in partnership with major Chinese and Korean panel makers.
To sell new products, we will likely need to target new market segments and new customers with whom we do not have current relationships, which may require different strategies and may present difficulties that we have not encountered before.
To sell new products, we will likely need to target new market segments and new customers with whom we do not have current relationships, which may require different strategies and may present difficulties that we have not encountered before. Failure to broaden our customer base and attract new customers may limit our growth prospects.
We may be affected by the Cayman Economic Substance Law Pursuant to the International Tax Co-operation (Economic Substance) Act (2021 Revision) (as amended) of the Cayman Islands (the “ES Act”), a “relevant entity” is required to satisfy the economic substance test set out in the ES Act.
Therefore, dividend payments made by us would be subject to withholding tax in the ROC. 19 Table of Contents We may be affected by the Cayman Economic Substance Law Pursuant to the International Tax Co-operation (Economic Substance) Act (2021 Revision) (as amended) of the Cayman Islands (the “ES Act”), a “relevant entity” is required to satisfy the economic substance test set out in the ES Act.
As a result, any significant fluctuations to our disadvantage in exchange rate of U.S. dollars against such currencies, in particular a weakening of the U.S. dollar against the NT dollar, would have an adverse impact on our operating expenses as expressed in U.S. dollar and adversely affect our operating profit. 18 Table of Contents Changes in ROC tax laws would likely increase our tax expenditures and decrease our net income.
As a result, any significant fluctuations to our disadvantage in exchange rate of U.S. dollars against such currencies, in particular a weakening of the U.S. dollar against the NT dollar, would have an adverse impact on our operating expenses as expressed in U.S. dollar and adversely affect our operating profit.
On July 12, 2016, the ROC Legislative Yuan passed the third reading of anti-avoidance to establish Article 43-3 Controlled Foreign Company (“CFC”) rules and Article 43-4 Place of Effective Management (“PEM”) rules of the Income Tax Act (“ITA”).
Operating and Financial Reviews and Prospects -Operating Results-Tax Credits” for further discussion of significant tax regulation changes. On July 12, 2016, the ROC Legislative Yuan passed the third reading of anti-avoidance to establish Article 43-3 Controlled Foreign Company (“CFC”) rules and Article 43-4 Place of Effective Management (“PEM”) rules of the Income Tax Act (“ITA”).
We cannot assure you that changes in such laws and regulations, or in their interpretation and enforcement, will not have a material adverse effect on the businesses and operations of our customers in the PRC and consequently have a material adverse effect on our business and operations.
We cannot assure you that changes in such laws and regulations, or in their interpretation and enforcement, will not have a material adverse effect on the businesses and operations of our customers in the PRC and consequently have a material adverse effect on our business and operations. 18 Table of Contents Fluctuations in exchange rates could result in foreign exchange losses and affect our results of operations.
AMOLED process maturity for the new manufactures and the possible specification change due to the immaturity of the AMOLED will also be a hurdle to our AMOLED share gain and success. Himax’s shipment for AMOLED driver ICs and TCON started from automotive application and then extended to tablet PC.
OLED process maturity for the new manufactures and the possible specification change due to the immaturity of the OLED will also be a hurdle to our AMOLED driver share gain and success. Himax’s solution for AMOLED includes driver ICs, TCON and touch controller ICs in automotive and tablet PC.
In addition, as a result of the worldwide financial crisis, business and manufacture disruptions caused by Covid-19 mandates and global developments relating to Russia's invasion of Ukraine, global stock markets have experienced extreme price and volume fluctuations.
In addition, the worldwide financial crisis, disruptions in business and manufacture due to sluggish demand, and global developments relating to Russia's invasion of Ukraine, global stock markets have experienced extreme price and volume fluctuations.
The market price for our ADSs is volatile and has ranged from a low of $4.81 to a high of $16.28 on the NASDAQ Global Select Market in 2022.
The market price for our ADSs is volatile and has ranged from a low of $5.22 to a high of $8.7 on the NASDAQ Global Select Market in 2023.
As a result, our dependence on high-voltage CMOS foundries presents the following, additional risks: (1) potential capacity constraints faced by the limited number of high-voltage CMOS foundries and the lack of investment in new and existing high-voltage CMOS foundries; (2) difficulty in attaining consistently high manufacturing yields from high-voltage CMOS foundries; (3) delay and time required to qualify and ramp up production at new high-voltage CMOS foundries; and (4) price increases. 11 Table of Contents As a result, we may be required to use foundries with which we have no established relationships, which could expose us to potentially unfavorable pricing, unsatisfactory quality or insufficient capacity allocation.
As a result, our dependence on high-voltage CMOS foundries presents the following, additional risks: (1) potential capacity constraints faced by the limited number of high-voltage CMOS foundries and the lack of investment in new and existing high-voltage CMOS foundries; (2) difficulty in attaining consistently high manufacturing yields from high-voltage CMOS foundries; (3) delay and time required to qualify and ramp up production at new high-voltage CMOS foundries; and (4) price increases.
Failure to broaden our customer base and attract new customers may limit our growth prospects. 10 Table of Contents As AMOLED offers brighter color, near-perfect-black, less power consumption and is thinner and lighter than TFT-LCD, it gradually penetrates the mid to high-end TFT-LCD market, especially the smartphone market. AMOLED display and related DDICs have been dominated by Korean companies.
As OLED offers brighter color, near-perfect-black, less power consumption and is thinner and lighter than TFT-LCD, it gradually penetrates the mid to high-end TFT-LCD market, especially the smartphone market. OLED display and related DDICs have been dominated by Korean companies.
Since November 2019, a novel strain of coronavirus (Covid-19) has spread across the world. The outbreak of Covid-19 has caused significant disruption not only to the financial markets but also to global supply chains, which can substantially depress global business activities, restrict access to capital and result in a long-term economic downturn that would negatively affect our operating results.
The outbreak of Covid-19 has caused significant disruption not only to the financial markets but also to global supply chains, which can substantially depress global business activities, restrict access to capital and result in a long-term economic downturn that would negatively affect our operating results. Extra export licenses may be needed for certain product or technology for certain customers.
Moreover, the scarcity and importance of services may necessitate us making investments in foundry, tape, assembly and testing service providers in order to secure capacity, which would require us to substantially increase our capital outlays and possibly raise additional capital, which may not be available to us on satisfactory terms, if at all.
Moreover, the scarcity and importance of services may necessitate us making investments in foundry, tape, assembly and testing service providers in order to secure capacity, which would require us to substantially increase our capital outlays and possibly raise additional capital, which may not be available to us on satisfactory terms, if at all. 9 Table of Contents Technological innovation may reduce the number of display drivers typically required for each panel, thereby reducing the number of display drivers we are able to sell per panel.
Moreover, the scarcity of high-voltage foundry capacity may necessitate us making investments in foundries in order to secure capacity, which would require us to substantially increase our capital outlays and possibly raise additional capital, which may not be available to us on satisfactory terms, if at all.
Moreover, the scarcity of high-voltage foundry capacity may necessitate us making investments in foundries in order to secure capacity, which would require us to substantially increase our capital outlays and possibly raise additional capital, which may not be available to us on satisfactory terms, if at all. 11 Table of Contents We generally do not enter long - term agreements with our foundry partners that guarantee production capacity, prices, lead times, or delivery schedules.
Some of them already commenced production since 2022. As we focus on scaling adoption in this relatively untapped market, we also collaborate closely with numerous AI ecosystem partners and communities to make our AI solution more diverse and accessible. Progress has been made in areas such as smart city / home / office, healthcare, smart agriculture and smart retail.
Some of these applications already commenced production since 2022. As we focus on scaling adoption in this relatively untapped market, we also collaborate closely with numerous AI ecosystem partners and communities as well as system integration companies to make our AI solution more diverse and accessible.
We may underestimate the amount of capital, personnel and other resources required to develop and commercialize our non-driver products. We may also overestimate the market potential of the end products that are utilizing or will utilize our non-driver products.
We may also overestimate the market potential of the end products that are utilizing or will utilize our non-driver products.
For tablet, we are seeing shipments on the rise for premium models that adopt advanced AMOLED display, of which Himax offers both DDIC and Tcon and has commenced production to certain leading brands. For automotive AMOLED display, we continue to win project awards for our flexible AMOLED driver and Tcon with both conventional car makers and EV/NEV vendors.
For tablet, we are seeing adoptions on the rise for premium models that adopt advanced OLED display, of which Himax offers both DDIC and TCON and has commenced production to certain leading brands.
However, we have foreign currency exposure and are primarily affected by fluctuations in exchange rates between the U.S. dollar and the NT dollar.
Our functional and reporting currency is U.S. dollars. In 2023, more than 99% of our revenues and cost of revenues were denominated in U.S. dollars. However, we have foreign currency exposure and are primarily affected by fluctuations in exchange rates between the U.S. dollar and the NT dollar.
You may face difficulties in protecting your interests as a shareholder because judicial precedents regarding shareholders’ rights are more limited under Cayman Islands law than under U.S. law, and because Cayman Islands law generally provides less protection to shareholders than U.S. law.
Therefore, our public shareholders may have more difficulty in protecting their interests through actions against our management, directors or major shareholders than shareholders of a corporation incorporated in a jurisdiction in the United States. 21 Table of Contents You may face difficulties in protecting your interests as a shareholder because judicial precedents regarding shareholders’ rights are more limited under Cayman Islands law than under U.S. law, and because Cayman Islands law generally provides less protection to shareholders than U.S. law.
Our principal foundries, tape and assembly and testing houses upon which we have relied to manufacture substantially all of our display drivers are located in Taiwan.
Most of our operations, and the operations of many of our semiconductor manufacturing service providers, suppliers and customers are located in Taiwan, which is vulnerable to natural disasters, in particular, earthquakes and typhoons. Our principal foundries, tape and assembly and testing houses upon which we have relied to manufacture substantially all of our display drivers are located in Taiwan.
A limited number of third-party tape, assembly and testing houses tape, assemble and test substantially all of our current products. There has been an increased level of industry consolidation among our suppliers in recent years.
A limited number of third-party tape, assembly and testing houses tape, assemble and test substantially all of our current products.
You may not have the same voting rights as the holders of our ordinary shares and may not receive voting materials sufficiently in advance to be able to exercise your right to vote.
Major Shareholders and Related Party Transactions—Major Shareholders.” If we, our executive officers, or directors or our shareholders sell ADSs or shares, the market price for our shares or ADSs could decline. 20 Table of Contents You may not have the same voting rights as the holders of our ordinary shares and may not receive voting materials sufficiently in advance to be able to exercise your right to vote.
The strategic relationships between certain of our competitors and their customers and the development of in-house capabilities by TFT-LCD and AMOLED panel manufacturers may limit our ability to expand our customer base and our growth prospects.
If such designs or technologies become widely adopted, demand for our display drivers may decrease significantly, which would adversely and materially affect our results of operations. The strategic relationships between certain of our competitors and their customers and the development of in-house capabilities by Panel Manufacturers may limit our ability to expand our customer base and our growth prospects.
Finally, we are making good progress with leading panel houses for the development of AMOLED display drivers for smartphone, TV and notebook applications.
For automotive OLED display, we continue to win project awards for our flexible AMOLED driver, TCON, and touch controller IC with both conventional car makers and EV/NEV vendors. Finally, we are making good progress with leading panel houses for the development of OLED display drivers for smartphone, TV and notebook applications.
For example, we have established certain in-house facilities for key manufacturing processes of our non-driver products including LCoS microdisplay, WLO and 3D sensing. Numerous uncertainties exist in developing new products and we cannot assure you that we will be able to develop our non-driver products successfully.
Developing and commercializing each of our non-driver products requires a significant amount of management, engineering and monetary resources. For example, we have established certain in-house facilities for key manufacturing processes of our non-driver products including LCoS microdisplay, WLO and 3D sensing.
Any unfavorable changes of tax laws and regulations in this jurisdiction could increase our effective tax rate and have an adverse effect on our operating results. See “Item 5.A. Operating and Financial Reviews and Prospects -Operating Results-Tax Credits” for further discussion of significant tax regulation changes.
Substantially all of the Company's taxable income is derived from the operations in the ROC and we are exposed primarily to taxes levied by the ROC government. Any unfavorable changes of tax laws and regulations in this jurisdiction could increase our effective tax rate and have an adverse effect on our operating results. See “Item 5.A.
Our non-driver technologies cover LCoS microdisplay, CMOS image sensor, wafer level optics (“WLO”), 3D sensing and ultralow power WiseEye smart image sensing, etc. For our LCoS technology, at present our main focus areas for LCoS business are AR goggle devices, projectors and head-up-displays (HUD) for automotive.
Our non-driver technologies cover Timing controller (TCON), LCoS microdisplay, CMOS image sensor, wafer level optics (“WLO”), 3D sensing and ultralow power WiseEye smart image sensing, etc. We offer TCON for large sized TV and monitor displays, automotive display and AMOLED panels.
The Company is incorporated in the Cayman Islands, a tax-free country; accordingly, pretax income generated by the group parent company is not subject to local income tax. Substantially all of the Company's taxable income is derived from the operations in the ROC and we are exposed primarily to taxes levied by the R.O.C. government.
Changes in ROC tax laws would likely increase our tax expenditures and decrease our net income. The Company is incorporated in the Cayman Islands, a tax-free country; accordingly, pretax income generated by the group parent company is not subject to local income tax.
Himax is more committed than ever to strengthening the Company’s WiseEye product roadmap and retaining the leadership position in ultralow power AI processor and image sensor for end-point AI applications. Developing and commercializing each of our non-driver products requires a significant amount of management, engineering and monetary resources.
Progress has been made in areas such as notebook, smart city / home / office, surveillance, healthcare, smart agriculture and smart retail. Himax is more committed than ever to strengthening the Company’s WiseEye product roadmap and retaining the leadership position in ultralow power AI processor and image sensor for end-point AI applications.
For CMOS image sensor business, in addition to the current shipment for notebook and webcam applications, we also extend the sensor business for the broad AI market.
For our LCoS technology, at present our main focus areas for LCoS business are AR goggle devices, projectors and head-up-displays (HUD) for automotive. For CMOS image sensor business, in addition to the current shipment for human vision applications, including notebook, multimedia and smart home cameras, we also extend the sensor business in machine vision application for the broad AI market.
Removed
As a result of the pandemic, numerous unprecedented measures are in place to try to contain the virus, such as travel restrictions, quarantines, stay-at-home and social distancing orders, and shutdowns. These measures may further impact our workforce and operations, and the operations of our customers and suppliers.
Added
Numerous uncertainties exist in developing new products and we cannot assure you that we will be able to develop our non-driver products successfully. We may underestimate the amount of capital, personnel and other resources required to develop and commercialize our non-driver products.
Removed
The ultimate impact and efficacy of measures and potential future measures is currently unknown. We have experienced and will experience disruptions to our business operations resulting from quarantines, self-isolations, or other restrictions on the ability of our employees to perform their jobs that may impact our ability to develop and design our products in a timely manner.
Added
As a result, we may be required to use foundries with which we have no established relationships, which could expose us to potentially unfavorable pricing, unsatisfactory quality or insufficient capacity allocation.
Removed
Our suppliers, sub-contractors and customers have been and will be disrupted by quarantines and social distancing measures, office and factory closures, disruptions to ports and other shipping infrastructure, border closures, or other travel-related restrictions.
Added
There is increasing concern that a gradual increase in global average temperatures due to increased concentration of carbon dioxide and other greenhouse gases in the atmosphere has, and will continue to, cause significant changes in weather patterns around the globe and an increase in the frequency and severity of natural disasters.

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Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeThe following table summarizes the features of our products used in automotive display applications: ​ Product Features TFT-LCD Source Drivers ​ ● 642 to 1,920 output channels ● 6-bit (262K colors), 8-bit (16.7 million colors) ● support RSDS, mini-LVDS, Point-to-Point interfaces ● output driving voltage ranging up to 15V ● support COG and COF package type ​ TFT-LCD Gate Drivers ​ ● 100 to 1,600 output channels ● output driving voltage ranging up to 40V ● support COG and COF package type ​ TFT-LCD Integrated Drivers ​ ● highly integrated chip embedded with source driver, timing controller and power circuit ● support RGB, LVDS input interfaces ● support Single Gate, Dual Gate, Triple Gate panel structure ● support 2MUX, 3MUX, 4MUX, 6MUX LTPS panel structure ● support GIP panel (a-TFT GIP or LTPS GIP or IGZO GIP) and non-GIP panel ● support resolution up to 2880 RGBx1080 (or 3840 RGBx810) with cascaded chips ● source driver output driving voltage ranging up to ±6.6V or 16V ● support Fail Detect Function, including CRC Function ● support Local Dimming Function ● support Telltale OSD function ● support COG and COF package type ​ 29 Table of Contents Product Features Timing Controllers ​ ● support LVDS, eDP 1.2 input interface ● support mini-LVDS, Point-to-Point output interfaces ● support Single Gate, Dual Gate, Triple Gate panel structure ● support 2MUX, 3MUX, 6MUX LTPS panel structure ● support GIP panel (a-TFT GIP or LTPS GIP or IGZO GIP) and non-GIP panel ● support various resolutions up to 4K2K(ICD) or 8K1K(CID) ● support Local Dimming Function ● support Dual Cell Panel Structure Function ● support Fail Detect Function, including CRC Function ● support Over Driver & De-mura function ● support Telltale OSD function ​ TFT-LCD TDDI ​ ● highly integrated chip embedded with source driver, timing controller, touch controller and power circuit ● support LVDS input interfaces ● support Single Gate, Dual Gate, Triple Gate a-TFT panel structure ● support 2MUX, 3MUX, 4MUX and 6MUX LTPS panel structure ● support GIP panel (a-TFT GIP or LTPS GIP) and non-GIP panel ● support resolution up to 5760RBx720 with 3 chips cascaded ● source driver output driving voltage ranging up to ±6.6V ● support Fail Detect Function, including CRC Function ● support Telltale OSD function ● support Color Engine function ● support COG package type ​ TFT-LCD LTDI ​ ● Large-sized Touch and Display Integration solution ● support point-to-point iSP input interface ● support resolution up to 12K1K with multi-chip cascaded ● support COF and COG package types ​ AMOLED Solutions ​ ● ASIC TCON and Driver IC chipset designed to meet customized requirements for automotive ​ Smartphone and Tablet Applications We offer display drivers for small and medium-sized displays in smartphone and tablet applications that combine source driver, gate driver, timing controller, DC to DC circuits, and optional frame buffer into a single chip or cascades chips in various display technologies, such as TFT-LCD and AMOLED.
Biggest changeThe following table summarizes the features of our products used in automotive display applications: ​ Product Features TFT-LCD Source Drivers ​ ● 642 to 1,920 output channels ● 6-bit (262K colors), 8-bit (16.7 million colors) ● support RSDS, mini-LVDS, Point-to-Point interfaces ● output driving voltage ranging up to 15V ● support COG and COF package type ​ TFT-LCD Gate Drivers ​ ● 100 to 1,600 output channels ● output driving voltage ranging up to 40V ● support COG and COF package type ​ TFT-LCD Integrated Drivers ​ ● highly integrated chip embedded with source driver, timing controller and power circuit ● support RGB, LVDS input interfaces ● support Single Gate, Dual Gate, Triple Gate panel structure ● support 2MUX, 3MUX, 4MUX, 6MUX LTPS panel structure ● support GIP panel (a-TFT GIP or LTPS GIP or IGZO GIP) and non-GIP panel ● support resolution up to 7680 RGBx810 with cascaded chips ● source driver output driving voltage ranging up to ± 6.6V or 16V ● support Fail Detect Function, including CRC Function ● support Local Dimming Function ● support Telltale OSD function ● support COG and COF package type ​ 30 Table of Contents Product Features Timing Controllers ​ ● support LVDS, eDP 1.2 input interface ● support mini-LVDS, Point-to-Point output interfaces ● support Single Gate, Dual Gate, Triple Gate panel structure ● support 2MUX, 3MUX, 6MUX LTPS panel structure ● support GIP panel (a-TFT GIP or LTPS GIP or IGZO GIP) and non-GIP panel ● support various resolutions up to 4K2K(ICD) or 8K1K(CID) ● support Local Dimming Function ● support Dual Cell Panel Structure Function ● support Fail Detect Function, including CRC Function ● support Over Driver & De-mura function ● support Telltale OSD function ​ TFT-LCD TDDI ​ ● highly integrated chip embedded with source driver, timing controller, touch controller and power circuit ● support LVDS input interfaces ● support Single Gate, Dual Gate, Triple Gate a-TFT panel structure ● support 2MUX, 3MUX, 4MUX and 6MUX LTPS panel structure ● support GIP panel (a-TFT GIP or LTPS GIP) and non-GIP panel ● support resolution up to 7680RBx900 with 4 chips cascaded ● source driver output driving voltage ranging up to ± 6.6V ● support Fail Detect Function, including CRC Function ● support Telltale OSD function ● support Color Engine function ● support COG package type ​ TFT-LCD LTDI ​ ● Large-sized Touch and Display Integration solution ● support point-to-point iSP input interface ● support resolution up to 12K1K with multi-chip cascaded ● support COF and COG package types ​ OLED Drivers ​ ● High-voltage process ● High channel and high speed interface ● Embedded P-gamma OP ● IGZO/AMOLED Solution ● Low power solution ● Support up to 4K2K/8K4K resolution ● Customized ASICs OLED TCONs ​ ● support high resolution up to 7.6Kx1K at 120Hz w/ VRR ● support eDP v1.4 1/2/4Lane 8.1Gbps, w/ DSC1.2a ● support 2-chip cascade ● passed AEC-Q100 Grade 2 ​ Smartphone and Tablet Applications We offer display drivers for small and medium-sized displays in smartphone and tablet applications that combine source driver, gate driver, timing controller, DC to DC circuits, and optional frame buffer into a single chip or cascades chips in various display technologies, such as TFT-LCD and OLED. 31 Table of Contents Smartphones and tablet have gained greater popularity among small and medium-sized display drivers and enjoyed high growth in recent years.
Among Himax’s ultralow power WiseEye smart image sensing businesses, our WiseEye for notebook solution features human presence detection and on-looker detection, offering power saving and enhancing privacy and security for notebook users. In 2021, we were highly encouraged by our WiseEye notebook solution being officially awarded by Dell, with a sizable purchase order, for a series of their new models.
Among Himax’s ultralow power WiseEye smart image sensing businesses, our WiseEye for notebook solution features human presence detection and on-looker detection, offering power saving and enhancing privacy and security for notebook users. In 2021, we were highly encouraged by our WiseEye solution being officially awarded by Dell, with a sizable purchase order, for a series of their new models.
In addition, we have registered “Himax and logo” as trademarks in Taiwan, China, Europe, Singapore, Korea, Japan and the United States. “Omniwide Film and logo” as trademarks in Taiwan, China, Europe, Korea, Japan and the United States, “CMVT” as trademarks in Taiwan and China, as well as “WISEEYE” as trademark in Israel and the United States.
In addition, we have registered “Himax and logo” as trademarks in Taiwan, China, Europe, Singapore, Korea, Japan and the United States. “Omniwide Film and logo” as trademarks in China, Europe, Korea, Japan and the United States, “CMVT” as trademarks in Taiwan and China, as well as “WISEEYE” as trademark in Israel and the United States.
When GBD connection is abnormal, which means glass was broken, the laser driver can cease the laser to prevent users from being exposed to higher power laser energy leaking from the broken glass. 41 Table of Contents The following table sets forth the features of our SLiM 3D sensing solutions: ​ ​ Product Features SLiM 3D sensing total solution ​ ● Dot projector: More than 33,000 invisible dots, the highest in the industry, projected onto object to build the most sophisticated 3D depth map among all structured light solutions ● Depth map accuracy: Error rate of ● Face recognition: Enabled by the most sophisticated 3D depth data to build unique facial map that can be used for instant unlock and secure online payment ● Indoor/outdoor sensitivity: Superior sensing capability even under total darkness or bright sunlight ● Eye safety: Certified for IEC 60825 Class 1, the international laser product standard which governs laser product safety under all conditions of normal use with naked eyes ● Glass broken detection: Patented glass broken detection mechanism in the dot projector whereby laser is shut down instantaneously in the event of broken glass in the projector ● Power consumption: Less than 400mW for projector, sensor and depth decoding combined, making it the lowest power consuming 3D sensing device by far among all structured light solutions ● Module size: the smallest structured light solution in the market, ideal for embedded and mobile device integration ​ ​ ​ HV-II 3D Decoder ASIC ​ ● Himax 3D Depth Processor with high depth accuracy ● Support up to HD resolution depth map for different applications ● 2D & 3D auto-exposure control for projector and sensor ● Frame rate conversion for different application/capability of SOC ● Scaling engine for different application/capability of SOC ● Ambient light detection and removal ● Embedded Security Engine ● Power Management Engine for power shutdown ● MIPI CSI-2 / DPHY interface ​ Ultralow power WiseEye Smart Image Sensing The demand for always-on battery-powered smart devices with AI intelligent sensing is rapidly growing.
When GBD connection is abnormal, which means glass was broken, the laser driver can cease the laser to prevent users from being exposed to higher power laser energy leaking from the broken glass. 43 Table of Contents The following table sets forth the features of our SLiM 3D sensing solutions: ​ ​ Product Features SLiM 3D sensing total solution ​ ● Dot projector: More than 33,000 invisible dots, the highest in the industry, projected onto object to build the most sophisticated 3D depth map among all structured light solutions ● Depth map accuracy: Error rate of ● Face recognition: Enabled by the most sophisticated 3D depth data to build unique facial map that can be used for instant unlock and secure online payment ● Indoor/outdoor sensitivity: Superior sensing capability even under total darkness or bright sunlight ● Eye safety: Certified for IEC 60825 Class 1, the international laser product standard which governs laser product safety under all conditions of normal use with naked eyes ● Glass broken detection: Patented glass broken detection mechanism in the dot projector whereby laser is shut down instantaneously in the event of broken glass in the projector ● Power consumption: Less than 400mW for projector, sensor and depth decoding combined, making it the lowest power consuming 3D sensing device by far among all structured light solutions ● Module size: the smallest structured light solution in the market, ideal for embedded and mobile device integration ​ ​ ​ HV-II 3D Decoder ASIC ​ ● Himax 3D Depth Processor with high depth accuracy ● Support up to HD resolution depth map for different applications ● 2D & 3D auto-exposure control for projector and sensor ● Frame rate conversion for different application/capability of SOC ● Scaling engine for different application/capability of SOC ● Ambient light detection and removal ● Embedded Security Engine ● Power Management Engine for power shutdown ● MIPI CSI-2 / DPHY interface ​ Ultralow power WiseEye Smart Image Sensing The demand for always-on battery-powered smart devices with AI intelligent sensing is rapidly growing.
The following table sets forth the features of our CMOS image sensor products: Product Features 4MP UltraSense 2 NIR Sensor ​ ● 1/3” format color type with high sensitivity BSI pixel ● 4MP resolution with 1:1 aspect ratio with Staggered HDR function at 30 frames per second for doorbell application, ● Provide ultralow power mode to support pre-rolling function with Himax WE1 AI processor ● 4-lane MIPI CSI2 outputs RAW8/10 ● ES target at 2023 Q2 ​ FHD 1/7” 1080p UltraSense Color Image Sensor ​ ● 1/7” format with high sensitivity BSI pixel ● 1080p FHD resolution at 60 frames per second ● Support Always-on mode at 480x270 ● Support line-based staggered HDR ● 2-lane MIPI CSI2 outputs ● Frame-Sync control for multiple camera system ​ ​ ​ FHD 1/4” 1080p UltraSense Color Image Sensor ​ ​ ● 1/4” format with high sensitivity BSI pixel ● 1080p FHD resolution at 30 frames per second ● Low power consumption ● Provide high NIR sensitivity and 4x4 RGB-IR option ● 2-lane MIPI CSI2 and 10bit parallel DVP outputs ● Frame-Sync control for multiple camera system ​ ​ ​ HD 720p UltraSense 2 Color Image Sensor ​ ● 1/9” format with high sensitivity BSI pixel ● 720p HD resolution at 30 frames per second ● Low power consumption ● Support LED-sync for Microsoft Windows Hello ● 1-lane MIPI CSI2 outputs RAW8/10 ​ HD 720p Ultra Low Power Color Image Sensor ​ ● 1/11” format with high sensitivity BSI pixel ● 720p HD resolution at 60 frames per second ● Ultra slim design to meet 2.2mm narrow bezel notebook computer ● Provide Ultralow Power mode ● Provide RGB for video and W-IR version for AoS + Windows Hello ● Support Motion Detection to save system power SPI and 1-lane MIPI CSI2 dual outputs for both detection and video 37 Table of Contents Product Features 1.3MP ClearSense EDR Color Image Sensor embedded with image processor for Surveillance ​ ​ ​ ● 1/4” format with ultra-high sensitivity ● ClearSense achieves higher dynamic range in color up to 84dB with on-chip tone mapping ● 800p and 720p resolution at 30 frames per second ● Flexi engine automatically controls dynamic range, exposure, gain, and white balance to balance color fidelity and contrast ● Color processing pipeline including lens shading correction, defect correction, edge enhancement, color interpolation and correction, gamma control, and saturation/hue adjustment. ● Anti-blooming and dark sun cancellation ● Built-in low dropout regulator and power on reset ● 10-bit parallel video data port supports RAW, YUV422, and RGB565/555/444 ​ 1.2MP UltraSense 2 Color Image Sensor embedded with image processor for Automotive ​ ● 1/4” format with ultra-high sensitivity ● Ultrasense 2 BSI pixel offers higher sensitivity for low light condition ● Operation up to 105ºC ● 960p and 720p resolution at 30 frames per second ● Color processing pipeline including lens shading correction, defect correction, edge enhancement, color interpolation and correction, gamma control, and saturation/hue adjustment ● Dynamic Range Optimizer offers best dynamic range of video ● Anti-blooming and dark sun cancellation ● Built-in low dropout regulator and power on reset ● 10-bit parallel video data port supports RAW, YUV422, and RGB565/555/444 ​ NTSC/PAL WVGA Color Image System on embedded with image processor for Automotive and Surveillance ​ ● High sensitivity, low noise VGA sensor operating up to 60FPS ● Visible and near infrared sensitivity ● Operation up to 105ºC ● Ultra-compact automotive package ● Advanced defect correction with built-in temperature sensor ● Embedded ISP with programmable automatic exposure and white balance ● Optical alignment pixel with crop and zoom to native resolution ● 4Kb OTP for sensor initialization, module storage, and overlay setting ● Multi-color static overlay engine ​ QVGA Ultralow Power CMOS Color Image System for Machine Vision and Detection ​ ● High sensitivity, low noise 1/11” 320x320 image area ● Under 2.5mW at QVGA 30fps and 1mW at QQVGA 15fps ● Embedded auto-exposure and motion detection ● NeoPac and CSP package ● Parallel 8bits, 4bits and 1bit data output ​ VGA Ultralow Power CMOS Color Image System for Machine Vision and Detection ​ ● High sensitivity, low noise 1/6” 640x480 image area ● Operates approximately 7mA VGA 60FPS to 140µA in QVGA 2FPS mode ● Provide high accurate motion detection ● Pre-metered exposure provides well exposed first frame and after extended sleep (blanking) period ● Automatic wake and sleep operation with programmable event interrupt to host processor ● Parallel 8bits and 1-Lane MIPI CSI2 interface ​ Wafer Level Optics Products Wafer level optics are optical products manufactured using semiconductor process on wafers.
The following table sets forth the features of our CMOS image sensor products: Product Features 4MP UltraSense 2 NIR Sensor ​ ● 1/3” format color type with high sensitivity BSI pixel ● 4MP resolution with 1:1 aspect ratio with Staggered HDR function at 30 frames per second for doorbell application, ● Provide ultralow power mode to support pre-rolling function with Himax WiseEye1 AI processor ● 4-lane MIPI CSI2 outputs RAW8/10 ● ES target at 2023 Q2 ​ FHD 1/7” 1080p UltraSense Color Image Sensor ​ ● 1/7” format with high sensitivity BSI pixel ● 1080p FHD resolution at 60 frames per second ● Support Always-on mode at 480x270 ● Support line-based staggered HDR ● 2-lane MIPI CSI2 outputs ● Frame-Sync control for multiple camera system ​ ​ ​ 39 Table of Contents Product Features FHD 1/4” 1080p UltraSense Color Image Sensor ​ ​ ● 1/4” format with high sensitivity BSI pixel ● 1080p FHD resolution at 30 frames per second ● Low power consumption ● Provide high NIR sensitivity and 4x4 RGB-IR option ● 2-lane MIPI CSI2 and 10bit parallel DVP outputs ● Frame-Sync control for multiple camera system ​ ​ ​ HD 720p UltraSense 2 Color Image Sensor ​ ● 1/9” format with high sensitivity BSI pixel ● 720p HD resolution at 30 frames per second ● Low power consumption ● Support LED-sync for Microsoft Windows Hello ● 1-lane MIPI CSI2 outputs RAW8/10 ​ HD 720p Ultra Low Power Color Image Sensor ​ ● 1/11” format with high sensitivity BSI pixel ● 720p HD resolution at 60 frames per second ● Ultra slim design to meet 2.2mm narrow bezel notebook computer ● Provide Ultralow Power mode ● Provide RGB for video and W-IR version for AoS + Windows Hello ● Support Motion Detection to save system power SPI and 1-lane MIPI CSI2 dual outputs for both detection and video ​ 1.3MP ClearSense EDR Color Image Sensor embedded with image processor for Surveillance ​ ​ ​ ● 1/4” format with ultra-high sensitivity ● ClearSense achieves higher dynamic range in color up to 84dB with on-chip tone mapping ● 800p and 720p resolution at 30 frames per second ● Flexi engine automatically controls dynamic range, exposure, gain, and white balance to balance color fidelity and contrast ● Color processing pipeline including lens shading correction, defect correction, edge enhancement, color interpolation and correction, gamma control, and saturation/hue adjustment. ● Anti-blooming and dark sun cancellation ● Built-in low dropout regulator and power on reset ● 10-bit parallel video data port supports RAW, YUV422, and RGB565/555/444 ​ 1.2MP UltraSense 2 Color Image Sensor embedded with image processor for Automotive ​ ● 1/4” format with ultra-high sensitivity ● Ultrasense 2 BSI pixel offers higher sensitivity for low light condition ● Operation up to 105ºC ● 960p and 720p resolution at 30 frames per second ● Color processing pipeline including lens shading correction, defect correction, edge enhancement, color interpolation and correction, gamma control, and saturation/hue adjustment ● Dynamic Range Optimizer offers best dynamic range of video ● Anti-blooming and dark sun cancellation ● Built-in low dropout regulator and power on reset ● 10-bit parallel video data port supports RAW, YUV422, and RGB565/555/444 ​ 40 Table of Contents Product Features NTSC/PAL WVGA Color Image System on embedded with image processor for Automotive and Surveillance ​ ● High sensitivity, low noise VGA sensor operating up to 60FPS ● Visible and near infrared sensitivity ● Operation up to 105ºC ● Ultra-compact automotive package ● Advanced defect correction with built-in temperature sensor ● Embedded ISP with programmable automatic exposure and white balance ● Optical alignment pixel with crop and zoom to native resolution ● 4Kb OTP for sensor initialization, module storage, and overlay setting ● Multi-color static overlay engine ​ QVGA Ultralow Power CMOS Color Image System for Machine Vision and Detection ​ ● High sensitivity, low noise 1/11” 320x320 image area ● Under 2.5mW at QVGA 30fps and 1mW at QQVGA 15fps ● Embedded auto-exposure and motion detection ● NeoPac and CSP package ● Parallel 8bits, 4bits and 1bit data output ​ VGA Ultralow Power CMOS Color Image System for Machine Vision and Detection ​ ● High sensitivity, low noise 1/6” 640x480 image area ● Operates approximately 7mA VGA 60FPS to 140µA in QVGA 2FPS mode ● Provide high accurate motion detection ● Pre-metered exposure provides well exposed first frame and after extended sleep (blanking) period ● Automatic wake and sleep operation with programmable event interrupt to host processor ● Parallel 8bits and 1-Lane MIPI CSI2 interface ​ Wafer Level Optics Products Wafer level optics are optical products manufactured using semiconductor process on wafers.
Moreover, its built-in over-temperature and over-current protections help prevent components from being damaged under certain abnormal conditions. As integrating an increasing number of components into a power management IC is likely to be a continuing trend, we believe power management ICs will continue to be critical components of a TFT-LCD panel module.
Moreover, its built-in over-temperature and over-current protections help prevent components from being damaged under certain abnormal conditions. As integrating an increasing number of components into a power management IC is likely to be a continuing trend, we believe power management ICs will continue to be critical components of a TFT-LCD and OLED panel module.
For management purpose, Himax Semiconductor Inc. was merged into Himax Taiwan on July 2, 2018. In March 2007, we established Himax Imaging, Inc., or Himax Imaging, which develops and markets CMOS image sensors with an initial focus on camera applications used in cell phones and notebook computers.
For management purpose, Himax Semiconductor Inc. was merged into Himax Taiwan on July 2, 2018. In March 2007, we established Himax Imaging, Inc., which develops and markets CMOS image sensors with an initial focus on camera applications used in cell phones and notebook computers.
We believe key factors that differentiate the competition in our industry include: ● customer relations; ● product performance; ● design customization; ● development time / product release; ● product integration; ● technical services; ● manufacturing costs; ● supply chain management; ● timely delivery; ● economies of scale; and ● broad product portfolio. 49 Table of Contents We continually face intense competition from fabless display driver companies, including Fitipower Integrated Technology, Inc., FocalTech Systems Co., Ltd., Novatek Microelectronics Corp., Raydium Semiconductor Corporation, Sitronix Technology Co., Ltd., Ilitek Corp., LX Semicon., ESWIN, Chipone, Newvision, Ribbon Display Japan, Hisilicon and Synaptics Incorporated.
We believe key factors that differentiate the competition in our industry include: ● customer relations; ● product performance; ● design customization; ● development time / product release; ● product integration; ● technical services; ● manufacturing costs; ● supply chain management; ● timely delivery; ● economies of scale; and ● broad product portfolio. 52 Table of Contents We continually face intense competition from fabless display driver companies, including Fitipower Integrated Technology, Inc., FocalTech Systems Co., Ltd., Novatek Microelectronics Corp., Raydium Semiconductor Corporation, Sitronix Technology Co., Ltd., Ilitek Corp., LX Semicon., ESWIN, Chipone, Newvision, Ribbon Display Japan, Hisilicon and Synaptics Incorporated.
Himax has also been tirelessly reducing impacts to the environment and improving safety in its operations, specifically targeting product design and waste handling. 47 Table of Contents Semiconductor Manufacturing Service Providers and Suppliers Through our relationships with leading foundries, assembly, gold bumping and testing houses and processed tape suppliers, we believe we have established a supply chain that enables us to deliver high-quality products to our customers in a timely manner.
Himax has also been tirelessly reducing impacts to the environment and improving safety in its operations, specifically targeting product design and waste handling. 50 Table of Contents Semiconductor Manufacturing Service Providers and Suppliers Through our relationships with leading foundries, assembly, gold bumping and testing houses and processed tape suppliers, we believe we have established a supply chain that enables us to deliver high-quality products to our customers in a timely manner.
Our expertise in precision assembly in optics also helps us to provide a more complete solution to our customers. 44 Table of Contents Customers Our customers for display drivers are primarily panel manufacturers and mobile device module manufacturers, who in turn design and market their products to manufacturers of end-use products such as notebook computers, desktop monitors, televisions, smartphone, tablet, automotive and consumer electronics products.
Our expertise in precision assembly in optics also helps us to provide a more complete solution to our customers. 47 Table of Contents Customers Our customers for display drivers are primarily Panel Manufacturers and mobile device module manufacturers, who in turn design and market their products to manufacturers of end-use products such as notebook computers, desktop monitors, televisions, smartphone, tablet, automotive and consumer electronics products.
Other than 3D sensing total solution, we also provide key component, including3D decoder IC and 3D vision processors. Our proprietary 3D decoder IC can accelerate local image processing for face recognition and offer best-in-class security authentication, therefore it- is particularly suitable for customers who wish to design their own structured light-based 3D sensing solution.
Other than 3D sensing total solution, we also provide key component, including 3D decoder IC and 3D vision processors. Our proprietary 3D decoder IC can accelerate local image processing for face recognition and offer best-in-class security authentication, therefore it is particularly suitable for customers who wish to design their own structured light-based 3D sensing solution.
It was already certified by the leading Chinese electronic payment standard with requirements of accurate data decoding, timely operation and strict privacy and now it’s well-adopted by many China e-payment solution providers. We entered into volume production of our proprietary 3D decoder IC in 2020, followed by meaningful volume shipments into 2021 and 2022.
It was already certified by the leading Chinese electronic payment standard with requirements of accurate data decoding, timely operation and strict privacy and now it’s well-adopted by many China e-payment solution providers. Our proprietary 3D decoder IC entered into volume production starting in 2020, followed by meaningful volume shipments into 2021 and 2022.
Our engineers are highly skilled in designing power efficient and compact display drivers that enhance the performance of TFT-LCD/AMOLED. We are leveraging our know-how of display drivers and driving system technology to develop display drivers for panels utilizing other technologies such as next generation AMOLED and electronic paper displays. High-Voltage CMOS Circuit Design.
Our engineers are highly skilled in designing power efficient and compact display drivers that enhance the performance of TFT-LCD/OLED. We are leveraging our know-how of display drivers and driving system technology to develop display drivers for panels utilizing other technologies such as next generation OLED and electronic paper displays. High-Voltage CMOS Circuit Design.
We have other sales and technical support offices in Hefei, Beijing, Shanghai, Fuzhou, Foshan, Fuqing, Ningbo, Wuhan, Nanjing, Chongqing, Chengdu, Xi’an and Xiamen, China; Tokyo, Japan; Asan-si and Bundang-gu, South Korea, Munich, Germany; and Irvine and San Jose, California and Minneapolis, Minnesota, USA, all in close proximity to our customers.
We have other sales and technical support offices in Hefei, Beijing, Shanghai, Fuzhou, Foshan, Fuqing, Ningbo, Wuhan, Nanjing, Chongqing, Chengdu, Xi’an and Xiamen, China; Tokyo, Japan; Asan-si and Bundang-gu, South Korea, Munich, Germany; and Irvine and San Jose, California, Minneapolis, Minnesota and Detroit, Michigan, USA, all in close proximity to our customers.
The table below sets forth the features of our products for large-sized applications: Product Features TFT-LCD Source Drivers ● 384 to 1920 output channels ● 6-bit (262K colors), 8-bit (16 million colors) or 10-bit (1 billion colors) ● one gamma-type driver ● two gamma-type drivers to improve display quality ● three gamma-type drivers (RGB independent gamma curve to enhance color image) ● output driving voltage ranging from 7 up to 20V ● input logic voltage ranging from standard 3.3V to low power 1.8V and support half VDDA ● low power consumption and low EMI ● support COF and COG package types ● support TTL, RSDS, mini-LVDS (up to 460MHz), cascade modulated driver interface, or CMDI, point-to-point high speed interface (up to 4Gbps for 8K 120Hz) and customized interface technologies ● support dual gate and triple gate panel designs ​ ​ 27 Table of Contents Product Features TFT-LCD Gate Drivers ● 192 to 1600 output channels ● output driving voltage ranging from 10 up to 40v ● input logic voltage ranging from standard 3.3V to low power 1.8V ● low power consumption ● support COF and COG package types ● support dual gate and triple gate panel designs ​ ​ ​ Timing Controllers ● product portfolio supports a wide range of resolutions, from VGA (640 x 480 pixels) to full HD, UHD and 8K4K (1,920 x 1,080 pixels, 1,920 x 1,200 pixels, 3840 x 2160 and 7680 x 4320) ● support mini-LVDS, point-to-point high speed interface and customized output interface technologies ● embedded overdrive function to improve response time ● support CABC and local dimming to save power and color engine to enhance color and sharpness ● support LVDS, eDP, MIPI and V-by-one input interface technologies ● support dual-gate, triple-gate, GOA (gate on array) and RGBW panel designs ● support amorphous silicon, IGZO and LTPS panel ● ASIC AMOLED Timing Controller ● ASIC uLED Timing Controller ​ ​ ​ Programmable Gamma OP ● 8 to 16 channel gamma buffer outputs ● channel VCOM buffer output ● Internal non-volatile memory ● 2 gamma bank selection, setting time ● Analog power supply voltage: 9.0V to 20.0V ● Digital power supply voltage: 2.7V to 3.6V ● Peak current on gamma channels: 200mA ● Peak current on VCOM channel: 400mA ● Programmable VCOM limit ● 12C speed up to 1MHz ​ Small and Medium -Sized Applications Automotive Display Applications We offer source drivers, gate drivers, timing controllers and integrated drivers for the fast-ramping automotive display applications, such as instrument cluster display (ICD), center stack display (CSD), head-up display (HUD), rear seat entertainment display (RSE), rearview mirror display and sideview mirror display. 28 Table of Contents The automotive display drivers can support various display resolutions to meet the customized needs of automotive display, including GIP panel and non-GIP panel, a-Si TFT panel and LTPS panel.
For high-end gaming requirement, we have developed eDP 8.1G TCON to increase bandwidth. 27 Table of Contents The table below sets forth the features of our products for large-sized applications: Product Features TFT-LCD Source Drivers ● 384 to 1920 output channels ● 6-bit (262K colors), 8-bit (16 million colors) or 10-bit (1 billion colors) ● one gamma-type driver ● two gamma-type drivers to improve display quality ● three gamma-type drivers (RGB independent gamma curve to enhance color image) ● output driving voltage ranging from 7 up to 20V ● input logic voltage ranging from standard 3.3V to low power 1.8V and support half VDDA ● low power consumption and low EMI ● support COF and COG package types ● support TTL, RSDS, mini-LVDS (up to 460MHz), cascade modulated driver interface, or CMDI, point-to-point high speed interface (up to 4Gbps for 8K 120Hz) and customized interface technologies ● support dual gate and triple gate panel designs ​ ​ 28 Table of Contents Product Features TFT-LCD Gate Drivers ● 192 to 1600 output channels ● output driving voltage ranging from 10 up to 40v ● input logic voltage ranging from standard 3.3V to low power 1.8V ● low power consumption ● support COF and COG package types ● support dual gate and triple gate panel designs ​ ​ ​ Timing Controllers ● product portfolio supports a wide range of resolutions, from VGA (640 x 480 pixels) to full HD, UHD and 8K4K (1,920 x 1,080 pixels, 1,920 x 1,200 pixels, 3840 x 2160 and 7680 x 4320) ● support mini-LVDS, point-to-point high speed interface and customized output interface technologies ● embedded overdrive function to improve response time ● support CABC and local dimming to save power and color engine to enhance color and sharpness ● support LVDS, eDP, MIPI and V-by-one input interface technologies ● support dual-gate, triple-gate, GOA (gate on array) and RGBW panel designs ● support amorphous silicon, IGZO and LTPS panel ● ASIC AMOLED Timing Controller ● ASIC uLED Timing Controller ​ ​ ​ Programmable Gamma OP ● 8 to 16 channel gamma buffer outputs ● channel VCOM buffer output ● Internal non-volatile memory ● 2 gamma bank selection, setting time ● Analog power supply voltage: 9.0V to 20.0V ● Digital power supply voltage: 2.7V to 3.6V ● Peak current on gamma channels: 200mA ● Peak current on VCOM channel: 400mA ● Programmable VCOM limit ● 12C speed up to 1MHz ​ Small and Medium -Sized Applications Automotive Display Applications We offer source drivers, gate drivers, timing controllers and integrated drivers for the fast-ramping automotive display applications, such as instrument cluster display (ICD), center stack display (CSD), head-up display (HUD), rear seat entertainment display (RSE), rearview mirror display and sideview mirror display. 29 Table of Contents The automotive display drivers can support various display resolutions to meet the customized needs of automotive display, including GIP panel and non-GIP panel, a-Si TFT panel and LTPS panel.
Lastly, our P2P driver and TCON ICs with 13.3" FHD can meet Intel 1W project requirements. We also made tremendous progress in TCON product lines in 2022. The UHD TV penetration rate is larger than 65% in 2022, and we developed competitive UHD TV TCON to seize this market.
Lastly, our P2P driver and TCON ICs with 13.3” FHD can meet Intel 1W project requirements. We also made tremendous progress in TCON product lines in 2022. The UHD TV penetration rate is larger than 65% in 2022, and we developed competitive UHD TV TCON to seize this market.
We expect volume production starting in 2023. 39 Table of Contents The following table sets forth the features of our wafer level optics products: ​ Product Features Refractive Optical Lens ​ ● for Micro Lens Array(MLA) illumination diffuser, lighting control, flux illumination lens, collimation lens, and compact size camera lens ● provide multi-layer solution including optical AR coating, IR-cutting filter coating, aspheric surface ● double-side manufacture process ● already in mass production ​ Diffractive Optical Element (DOE) ​ ● computational imaging, flux illumination, dot projector for 3D sensing, 3D reconstruction, gesture and illumination control ● using WLO process to integral multi-layers DOE and refractive lens ● provide customized solution for specific application ● the smallest form factor and reflowable component ● eye safety detect circuit embedded ​ Diffuser element for flood illumination and TOF ​ ● using WLO process to integral multi-layers DOE technology ● the smallest form factor and reflowable component ● eye safety detect circuit embedded ​ ​ ​ Near Infrared (NIR) Projector Module ​ ● dot projector module solution for computer vision, 3D sensing, 3D reconstruction, gesture and illumination control ● integral NIR Laser (830/850/940nm), optical system (refractive+ diffractive lens) and high precise active alignment assembly solution to provide the smallest form factor ● module design for smartphone and other mobile devices ● provide customized module solution for different application ● the smallest form factor and reflowable device ● including active eye safety solution (Class-1) ​ ​ ​ Flood illumination Module ​ ● provide customized solution for specific application integral NIR Laser (830/850/940nm), and high precise active alignment assembly solution ● module design for smartphone and other mobile devices ● the smallest form factor and reflowable device ● including active eye safety solution (Class-1) ​ ​ ​ ​ 3D Sensing Business We continue to participate in most of the smartphone OEMs’ ongoing time-of-flight (ToF) 3D sensing projects.
The following table sets forth the features of our wafer level optics products: ​ Product Features Refractive Optical Lens ​ ● for Micro Lens Array(MLA) illumination diffuser, lighting control, flux illumination lens, collimation lens, and compact size camera lens ● provide multi-layer solution including optical AR coating, IR-cutting filter coating, aspheric surface ● double-side manufacture process ● already in mass production ​ Diffractive Optical Element (DOE) ​ ● computational imaging, flux illumination, dot projector for 3D sensing, 3D reconstruction, gesture and illumination control ● using WLO process to integral multi-layers DOE and refractive lens ● provide customized solution for specific application ● the smallest form factor and reflowable component ● eye safety detect circuit embedded ​ Diffuser element for flood illumination and TOF ​ ● using WLO process to integral multi-layers DOE technology ● the smallest form factor and reflowable component ● eye safety detect circuit embedded ​ ​ ​ Near Infrared (NIR) Projector Module ​ ● dot projector module solution for computer vision, 3D sensing, 3D reconstruction, gesture and illumination control ● integral NIR Laser (830/850/940nm), optical system (refractive+ diffractive lens) and high precise active alignment assembly solution to provide the smallest form factor ● module design for smartphone and other mobile devices ● provide customized module solution for different application ● the smallest form factor and reflowable device ● including active eye safety solution (Class-1) ​ ​ ​ Flood illumination Module ​ ● provide customized solution for specific application integral NIR Laser (830/850/940nm), and high precise active alignment assembly solution ● module design for smartphone and other mobile devices ● the smallest form factor and reflowable device ● including active eye safety solution (Class-1) ​ ​ ​ ​ 3D Sensing Business We continue to participate in most of the smartphone OEMs’ ongoing time-of-flight (ToF) 3D sensing projects.
Higher speed interface technologies are also key for 4Kx2K and 8Kx4K high-resolution TVs. Greater color depth, thermal solution, high data rate and high driving, are particularly important for advanced televisions and certain monitors. Our large display driver IC business achieved several milestones from 2019.
Higher speed interface technologies are also key for 4Kx2K and 8Kx4K high-resolution TVs. Greater color depth, thermal solution, high data rate and high driving, are particularly important for advanced televisions and certain monitors. Our large display driver IC business achieved several milestones since 2019.
The gold bumps are plated onto each wafer to connect the die to the processed tape, in the case of TAB package, or the glass, in the case of COG package. 46 Table of Contents Chip Probe Testing : Each die is electrically tested, or probed, for defects. Dies that fail this test are discarded.
The gold bumps are plated onto each wafer to connect the die to the processed tape, in the case of TAB package, or the glass, in the case of COG package. 49 Table of Contents Chip Probe Testing : Each die is electrically tested, or probed, for defects. Dies that fail this test are discarded.
The ultralow power WiseEye smart image sensing solution is being engaged in a variety of applications, such as notebook, home appliances, utility meter, automotive, battery-powered surveillance camera, panoramic video conferencing, and medical, just to name a few.
The ultralow power WiseEye smart image sensing solution is being engaged in a variety of applications, such as notebook, home appliances, utility meter, automotive, door lock, battery-powered surveillance camera, panoramic video conferencing, and medical, just to name a few.
In addition, we have entered into various agreements with certain customers whereby we have agreed to indemnify them, and in certain cases, their customers, for any claims made against them for hazardous material violations that are found in our products. 50 Table of Contents 4.C.
In addition, we have entered into various agreements with certain customers whereby we have agreed to indemnify them, and in certain cases, their customers, for any claims made against them for hazardous material violations that are found in our products. 53 Table of Contents 4.C.
Instead of 3D sensing, most of the Android phone makers have chosen the lower cost fingerprint technology which can achieve similar phone unlock and online payment functions with somewhat compromised user experience. As a leading provider of 3D sensing technology, Himax is also an active participant in smartphone OEMs’ design projects for new devices involving ToF technology.
Instead of 3D sensing, most of the Android phone makers have chosen the lower cost fingerprint technology which can achieve similar phone unlock and online payment functions with somewhat compromised user experience. 42 Table of Contents As a leading provider of 3D sensing technology, Himax is also an active participant in smartphone OEMs’ design projects for new devices involving ToF technology.
We started mass production for the world’s first 12.4” WQXGA super high-resolution in-cell tablet PC with a leading end customer in 2021 and expanded collaborations with more brands into more models in 2022. Tablet in-cell TDDI offers the benefits of lower cost and a simplified supply chain that represents an easier manufacturing process for panel makers.
We started mass production for the world’s first 12.4” WQXGA super high-resolution in-cell tablet PC with a leading end customer in 2021 and expanded collaborations with more brands into more models moving forward. Tablet in-cell TDDI offers the benefits of lower cost and a simplified supply chain that represents an easier manufacturing process for panel makers.
Through our collaboration with panel manufacturers, we have developed extensive knowledge of circuit design, TFT-LCD/AMOLED driving systems, high-voltage CMOS processes and display systems, all of which are important to the design of high-performance TFT-LCD/AMOLED display drivers.
Through our collaboration with Panel Manufacturers, we have developed extensive knowledge of circuit design, TFT-LCD/OLED driving systems, high-voltage CMOS processes and display systems, all of which are important to the design of high-performance TFT-LCD/OLED display drivers.
Display driver companies must work closely with their customers to develop semiconductors that meet their customers’ specific needs in order to optimize the performance of their products. Mixed-Signal Design and High-Voltage CMOS Process Technology Display drivers have specific design and manufacturing requirements that are not standard in the semiconductor industry.
Display driver companies must work closely with their customers to develop semiconductors that meet their customers’ specific needs in order to optimize the performance of their products. 24 Table of Contents Mixed-Signal Design and High-Voltage CMOS Process Technology Display drivers have specific design and manufacturing requirements that are not standard in the semiconductor industry.
Leveraging on our WLO technology, we have provided our partners with spot projectors or optics components for their reference design. 40 Table of Contents 3D sensing can have a wide range of applications beyond smartphone. We have started to explore business opportunities in various industries by leveraging our structured light 3D sensing total solution.
Leveraging on our WLO technology, we have provided our partners with spot projectors or optics components for their reference design. 3D sensing can have a wide range of applications beyond smartphone. We have started to explore business opportunities in various industries by leveraging our structured light 3D sensing total solution.
Organizational Structure The following chart sets forth our corporate structure and ownership interest in each of our principal operating subsidiaries and affiliates as of March 31, 2023. ​ ​ The following table sets forth summary information for our subsidiaries as of March 31, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage of ​ ​ ​ Jurisdiction of Our Ownership ​ Subsidiary Main Activities Incorporation Interest ​ ​ ​ ​ ​ ​ ​ ​ ​ Himax Technologies Limited IC design and sales ROC 100.0 % Himax Technologies Korea Ltd.
Organizational Structure The following chart sets forth our corporate structure and ownership interest in each of our principal operating subsidiaries as of March 31, 2024. ​ ​ The following table sets forth summary information for our subsidiaries as of March 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage of ​ ​ ​ Jurisdiction of Our Ownership ​ Subsidiary Main Activities Incorporation Interest ​ ​ ​ ​ ​ ​ ​ ​ ​ Himax Technologies Limited IC design and sales ROC 100.0 % Himax Technologies Korea Ltd.
WE1 is especially suitable for resource-constrained and battery powered context-aware application, such as motion detection, human detection and face detection. ● Computer vision algorithm is based on tiny machine learning framework, which is trainable for desired use cases (human presence detection, attention detection and on-looker detection for notebook applications; occupancy detection, gesture recognition etc. for AIoT applications) on ultralow power and resource-constrained compute platform (CPU clock, internal memory) ​ For the other business model, we provide key components, such as proprietary ultralow power WE1 AI processor or Always-On CMOS image sensor (AoS).
WiseEye is especially suitable for resource-constrained and battery powered context-aware application, such as motion detection, human detection and face detection, face mesh, face landmark and gesture. ● Computer vision algorithm is based on tiny machine learning framework, which is trainable for desired use cases (human presence detection, attention detection and on-looker detection for notebook applications; occupancy detection, gesture recognition etc. for AIoT applications) on ultralow power and resource-constrained compute platform (CPU clock, internal memory) ​ For the other business model, we provide key components, such as proprietary ultralow power WiseEye1 AI processor or Always-On CMOS image sensor (AoS).
Our engineers collaborate with our customers’ engineers to create products that comply with their specifications and provide a high level of performance at competitive prices and also create customized features for end brand customers. Our end market for large-sized panels is concentrated among a limited number of major panel manufacturers.
Our engineers collaborate with our customers’ engineers to create products that comply with their specifications and provide a high level of performance at competitive prices and also create customized features for end brand customers. Our end market is concentrated among a limited number of major Panel Manufacturers.
The lease contracts may be renewed upon expiration. We have established under Himax Taiwan an in-house WLO facility for the key process of our products, with 1,171 square meters of floor space in a building leased from Innolux, which already produced and shipped over 50 million optics to Tier-1 customer from 2010.
The lease contracts may be renewed upon expiration. We have established an in-house WLO facility under Himax Taiwan for the key process of our products. The facility occupies 1,171 square meters of floor space in a building leased from Innolux, which was already produced and shipped over 50 million optics to Tier-1 customer since 2010.
The major application of display driver IC is used on TFT-LCDs. Other than display drivers for TFT-LCDs, we also offer display drivers for AMOLED and Electronic Paper (e-paper) Displays.
The major application of display driver IC is used on TFT-LCDs. Other than display drivers for TFT-LCDs, we also offer display drivers for OLED and Electronic Paper (e-paper) Displays.
The timing controller also generates controlling signals for gate and source drivers. Typically, the timing controller is a discrete semiconductor in large-sized TFT-LCD, AMOLED and e-paper panels. For certain small and medium-sized applications, however, the timing controller may be integrated with display drivers. ● Operational Amplifier.
The timing controller also generates controlling signals for gate and source drivers. Typically, the timing controller is a discrete semiconductor in TFT-LCD, OLED and e-paper panels. For certain small and medium-sized applications, however, the timing controller may be integrated with display drivers. ● Operational Amplifier.
Additionally, we expect that as the flat panel semiconductor industry expands, more companies may enter and compete in our markets. For In-cell TDDI, we compete with Novatek Microelectronics Cop., Synaptics Incorporated, FocalTech Systems Co., Ltd., and Ilitek Corp., etc. For LCoS microdisplay products, we face competition from OmniVision, Jasper, Citizen, Syndiant, Kopin, and RAONTECH.
Additionally, we expect that as the flat panel semiconductor industry expands, more companies may enter and compete in our markets. For In-cell TDDI, we compete with Novatek Microelectronics Cop., Synaptics Incorporated, FocalTech Systems Co., Ltd., ESWIN, Chipone, OmniVision and Ilitek Corp., etc. For LCoS microdisplay products, we face competition from OmniVision, Syndiant, Kopin, and RAONTECH.
The output circuitry has been designed to achieve high rise and fall times when driving the capacitive loads typically encountered in TFT-LCD display applications. ​ ​ Product Features 16- channel output level shifter for GOA TFT-LCD ​ ● Support 1 or 2 of T-con input signals ● Support 1 or 2 input and 4/6/8/10 clock channel output ● 2 channel STV ● 2 channel LC ● Reset function ● OTP/ SCP and OCP function by I2C or Resistor adjustment ​ LED driver A light-emitting diode (LED) is a semiconductor light source that is widely used in lighting, display and TFT LCD backlight nowadays.
The output circuitry has been designed to achieve high rise and fall times when driving the capacitive loads typically encountered in TFT-LCD display applications. ​ ​ Product Features 16- channel output level shifter for GOA TFT-LCD ​ ● Support 1 or 2 or 6 input and 4/6/8/10 clock channel output ● 2 channel STV ● 2 channel LC ● Reset and charge sharing function ● OTP/ SCP and OCP function by I2C or Resistor adjustment ​ LED driver A light-emitting diode (LED) is a semiconductor light source that is widely used in lighting, display and TFT LCD backlight nowadays.
LCoS and MEMS design, manufacturing and sales ROC 83.5 % (1) Integrated Microdisplays Limited LCoS design Hong Kong 83.5 % (3) Himax Display (USA) Inc. LCoS and MEMS design, sales and technical support Delaware, USA 83.5 % (3) Himax Analogic, Inc. IC design and sales ROC 98.6 % (1) Himax Imaging, Inc. Investments Cayman Islands 100.0 % Himax Imaging, Ltd.
LCoS and MEMS design, manufacturing and sales ROC 92.0 % (1) Integrated Microdisplays Limited LCoS design Hong Kong 92.0 % (3) Himax Display (USA) Inc. LCoS and MEMS design, sales and technical support Delaware, USA 92.0 % (3) Himax Analogic, Inc. IC design and sales ROC 98.6 % (1) Himax Imaging, Inc. Investments Cayman Islands 100.0 % Himax Imaging, Ltd.
The following table summarizes certain features of our power management IC products: ​ ​ Product Features Integrated Multi-Channel Power Solutions for Notebooks ​ ● PMIC, PGOP 2-in-1 and Level Shifter ● 2ch programmable gamma voltage inside ● PAVDD Synchronous Boost Converter ● NAVDD Synchronous Inverting Converter ● VGH / VGL Synchronous SIBO Converter ● built-in power MOSFET ● step-up PWM converter ● charge pump regulator ● LDO regulator ● programmable voltage detector ● gate pulse modulator ● Vcom operational amplifier ● I2C programmable ● low frame rate control for power saving solution ● built in UVLO, UVP, OVP, SCP and OTP protection ​ ​ ​ Integrated Multi-Channel Power Solutions for Monitors ​ ● PMIC, PGOP and Level Shifter 3-in-1 ● built-in power MOSFET ● step-up PWM converter ● HV LDO regulator ● programmable voltage detector ● gate pulse modulator ● programmable Vcom voltage / Vcom operational amplifier ● programmable gamma voltage with operational amplifier ● built in UVLO, UVP, OVP, SCP and OTP protection ​ ​ ​ Integrated Multi-Channel Power Solutions for TVs ​ ● PMIC, PGOP 2-in-1 and Level Shifter ● built-in power MOSFET ● step-up PWM converter ● step-down PWM converter ● charge pump and buck-boost regulator ● HV LDO regulator ● programmable voltage detector ● gate pulse modulator ● Vcom operational amplifier ● I2C programmable ● programmable gamma voltage with operational amplifier ● built in UVLO, UVP, OVP, SCP and OTP protection ​ 35 Table of Contents Programmable Gamma OP ICs It is a Programmable Gamma, DVR and VCOM IC.
The following table summarizes certain features of our power management IC products: ​ ​ Product Features Integrated Multi-Channel Power Solutions for TFT-LCD and OLED Notebooks ​ ● PMIC, PGOP 2-in-1 and Level Shifter ● 2ch programmable gamma voltage inside ● PAVDD Synchronous Boost Converter ● NAVDD Synchronous Inverting Converter ● VGH / VGL Synchronous SIBO Converter ● 3ch Vint OP for OLED Panel ● built-in power MOSFET ● step-up PWM converter ● charge pump regulator ● LDO regulator ● programmable voltage detector ● gate pulse modulator ● Vcom operational amplifier ● I2C programmable ● low frame rate control for power saving solution ● built in UVLO, UVP, OVP, SCP and OTP protection ​ ​ ​ Integrated Multi-Channel Power Solutions for Monitors ​ ● PMIC, PGOP and Level Shifter 3-in-1 ● built-in power MOSFET ● step-up PWM converter ● HV LDO regulator ● programmable voltage detector ● gate pulse modulator ● programmable Vcom voltage / Vcom operational amplifier ● programmable gamma voltage with operational amplifier ● built in UVLO, UVP, OVP, SCP and OTP protection ​ ​ ​ 37 Table of Contents Integrated Multi-Channel Power Solutions for TVs ​ ● PMIC, PGOP 2-in-1 and Level Shifter ● built-in power MOSFET ● step-up PWM converter ● step-down PWM converter ● charge pump and buck-boost regulator ● HV LDO regulator ● programmable voltage detector ● gate pulse modulator ● Vcom operational amplifier ● I2C programmable ● programmable gamma voltage with operational amplifier ● built in UVLO, UVP, OVP, SCP and OTP protection ​ Programmable Gamma OP ICs It is a Programmable Gamma, DVR and VCOM IC.
Additionally, Himax Taiwan maintains a color filter facility and a wafer level optics facility and Himax Display maintains a facility for our LCoS products.
Additionally, Himax Taiwan maintains a CP tester facility, a color filter facility and a wafer level optics facility and Himax Display maintains a facility for our LCoS products.
Starting in 2020, Himax extended our product offerings with high frame rate TDDI solution and has started shipping to top-tier smartphone OEMs. 30 Table of Contents A major development we are seeing in the marketplace is increased utilization of the AMOLED display for smartphone, smart watch, automotive and tablet.
Starting in 2020, Himax extended our product offerings with high frame rate TDDI solution and has started shipping to top-tier smartphone OEMs. A major development we are seeing in the marketplace is increased utilization of the OLED display for smartphone, smart watch, automotive and tablet.
Output voltage may be higher or lower depending on the characteristics of the liquid crystal (or diode), in the case of source drivers, or TFT device, in the case of gate drivers. ● Gamma Curve.
Output voltage may be higher or lower depending on the characteristics of the liquid crystal (or diode), in the case of source drivers, or TFT device, in the case of gate drivers. 26 Table of Contents ● Gamma Curve.
Our telephone number at this address is +886-6-505-0880. Our registered office in the Cayman Islands is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands. Our telephone number at this address is +1-345-945-3901.
Our registered office in the Cayman Islands is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands. Our telephone number at this address is +1-345-945-3901.
AMOLED display is getting more and more popular in recent years, starting from high-end smartphone and TV applications, while e-paper display mimics traditional paper sheet and holds static text and images indefinitely without electricity. Detailed display driver IC specification for LCD, AMOLED and e-paper are different due to panel characteristics.
OLED display is getting more and more popular in recent years, starting from high-end smartphone and TV applications towards tablet, notebook and automotive, while e-paper display mimics traditional paper sheet and holds static text and images indefinitely without electricity. Detailed display driver IC specification for LCD, OLED and e-paper are different due to panel characteristics.
Starting in 2021, we shipped small volume of business access control and biomedical inspection devices with more design-ins and engagements currently under progress. To strengthen our offers in 3D sensing total solution, we have been collaborating closely mainly with two types of partners: those with industry-leading expertise in facial recognition algorithm and those offering application processors with strong AI capability.
Starting in 2021, we shipped small volume of business access control and biomedical inspection devices. To strengthen our offers in 3D sensing total solution, we have been collaborating closely mainly with two types of partners: those with industry-leading expertise in facial recognition algorithm and those offering application processors with strong AI capability.
Uniquely designed for ultralow power Computer Vision applications with always on scanning as low as 100uW. ● WE1 AI processor is a uniquely designed ultralow power computer vision processing silicon, targeting always on applications with a sub 1mW capabilities.
Uniquely designed for ultralow power Computer Vision applications with always on scanning as low as 100uW. ● WiseEye AI processor (WiseEye1 / WiseEye2) is a uniquely designed ultralow power computer vision processing silicon, targeting always on applications with a sub 1mW capabilities.
COF and TCP are two types of TAB packages, of which COF packages have become predominantly used in recent years. Customers typically determine the package type required according to their specific mechanical and electrical considerations.
The assembly of display drivers typically uses TAB and COG package types. COF and TCP are two types of TAB packages, of which COF packages have become predominantly used in recent years. Customers typically determine the package type required according to their specific mechanical and electrical considerations.
Himax IGI operates under the designated facility related for 3D mask production, to the best of Himax’s knowledge, we have taken the necessary steps to obtain the appropriate permits and believe that we are in compliance with the existing environmental laws and regulations in the applicable ROC and US jurisdictions.
Himax IGI operates under the designated facility related for 3D mask production, where we have taken the necessary steps to obtain the appropriate permits and, to extents of Himax knowledge, believe that we are in compliance with the existing environmental laws and regulations in the Taiwan ROC and US jurisdiction applicable.
In November 2002, we received ISO 9001 certification, which was renewed in March 2021 and will expire in March 2024. In February 2006, we received ISO 14001 certification, which was renewed in December 2020 and will expire in December 2023.
In November 2002, we received ISO 9001 certification, which was renewed in March 2024 and will expire in March 2027. In February 2006, we received ISO 14001 certification, which was renewed in December 2023 and will expire in December 2026.
The following table summarizes the features of our products for smartphone and tablet applications: Product Features TFT-LCD TDDI for smartphone and tablet ​ ● In-cell TDDI (Touch and Display Driver Integration) as a highly integrated single chip embedded with the source driver, gate driver, power circuit, timing controller and memory, touch sensor ADCs and microcontroller ● Mainstream smartphone single chip for HD+ (720RGB x Y pixels) or FHD+ (1080RGB x Y pixels) ● Mainstream tablet PC resolutions for WXGA (800RGB x Y) with single chip or WUXGA (1200RGB x Y), WQXGA (1600RGB x Y) with 2-chip cascaded ● Conventional 60Hz and up to 144Hz new high frame rate solutions ● Support MIPI interface and VESA DSC ● Support up to 16 million colors ● Support active stylus for tablet PC ● COG and COF solutions for super slim bottom border ​ 31 Table of Contents Product Features TFT-LCD Tablet Display Drivers ​ ● highly integrated single chip embedded with the source driver, power circuit, and timing controller ● suitable for a wide range of resolutions from WSVGA (600 x 1024), WXGA (800 x 1280), WUXGA (1200x1920) to WQXGA (1600 x 2560) ● support up to 16 million colors ● support RGB separated gamma adjustment ● support CABC ● support color enhancement features ● support MIPI interface ● touch display driver integrated circuit (TDDI) for advanced in-cell touch display ● supporting TDDI with active stylus ● COG and COF solutions for super slim bezel ​ AMOLED Solutions ​ ● ASIC TCON and Driver IC chipset designed to meet customized requirements for tablet ● Flagship tablet resolutions WQXGA (1600RGB x Y) with multi-chip cascaded, up to 3Kx2K resolution and 144Hz refresh rate ● Support MIPI interface and VESA DSC with 1 billion colors (10bit grayscale) ● Smartphone single chip with sub-pixel rendering, Demura-IPs for FHD+ resolution with up to 144Hz high frame rate ● Support MIPI interface and VESA DSC with 1 billion colors (10bit grayscale) ​ Electronic Paper Display Applications We offer display driver for the Electronic Paper Display (EPD) applications, Electronic Shelf Label (ESL) and Signage Display.
TDDI for tablet application continues to broaden its market, representing a potential upside for Himax into 2023 and beyond. 32 Table of Contents The following table summarizes the features of our products for smartphone and tablet applications: Product Features TFT-LCD TDDI for smartphone and tablet ​ ● In-cell TDDI (Touch and Display Driver Integration) as a highly integrated single chip embedded with the source driver, gate driver, power circuit, timing controller and memory, touch sensor ADCs and microcontroller ● Mainstream smartphone single chip for HD+ (720RGB x Y pixels) or FHD+ (1080RGB x Y pixels) ● Mainstream tablet PC resolutions for WXGA (800RGB x Y) with single chip or WUXGA (1200RGB x Y), WQXGA (1600RGB x Y) with 2-chip cascaded ● Conventional 60Hz and up to 144Hz new high frame rate solutions ● Support MIPI interface and VESA DSC ● Support up to 16 million colors ● Support active stylus for tablet PC ● COG and COF solutions for super slim bottom border ​ TFT-LCD Tablet Display Drivers ​ ● highly integrated single chip embedded with the source driver, power circuit and timing controller ● suitable for a wide range of resolutions from WSVGA (600 x 1024), WXGA (800 x 1280), WUXGA (1200x1920) to WQXGA (1600 x 2560) ● support up to 16 million colors ● support RGB separated gamma adjustment ● support CABC ● support color enhancement features ● support MIPI interface ● touch display driver integrated circuit (TDDI) for advanced in-cell touch display ● supporting TDDI with active stylus ● COG and COF solutions for super slim bezel ​ AMOLED Solutions ​ ● Smartphone single chip with sub-pixel rendering, Demura-IPs for FHD+ resolution with up to 144Hz high frame rate ● Support MIPI interface and VESA DSC with 1 billion colors (10bit grayscale) ● TCON and Source driver IC for tablet with high resolution of 3.2Kx2K 144Hz with VRR ● customized ASICs ​ Electronic Paper Display Applications We offer display driver for the Electronic Paper Display (EPD) applications, Electronic Shelf Label (ESL) and Signage Display.
We do not have insurance for business interruptions, nor do we have key person insurance. Environmental Matters Himax is required to ensure that its products comply with valid regulations and governmental authorities’ regulatory directives in applicable jurisdictions relating to environmental protection regulations.
We do not have insurance for business interruptions, nor do we have key person insurance. Environmental Matters Himax is required to ensure its products are obligated to comply with valid regulations and governmental authorities’ regulatory directives in applicable jurisdictions relating to environmental protection regulations and subject to the topic of Environmental Protection.
In 2020, 2021 and 2022, our two largest customers accounted for 10% or more of our net revenue: customer A and its affiliates accounted for 32.6%, 32.1% and 32.3% of our revenues, respectively; and customer C accounted for 12.7%, 19.1% and 9.4%, respectively.
In 2021, 2022 and 2023, our two largest customers accounted for 10% or more of our net revenue: customer A and its affiliates accounted for 32.1%, 32.3% and 28.7% of our revenues, respectively; and customer C accounted for 19.1%, 9.4% and 11.0%, respectively.
Stemco., Ltd. ​ Chipbond Technology Corporation Chipbond Technology Corporation ​ Chipmore International Trading Company Ltd. ​ ChipMOS Technologies Inc. ​ Global Testing Corporation ​ Greatek Electronics Inc. ​ Jiangsu Changjiang Electronics Technology Co., Ltd. ​ King Yuan Electronics Co., Ltd. ​ Micro Silicon Electronics Corp. ​ Nepes Corporation ​ Taiwan IC Packaging Corporation ​ LB Lusem Co., Ltd. ​ Union Semiconductor Co., Ltd. ​ ​ 48 Table of Contents ​ ​ Chip Probe Testing ​ Chipbond Technology Corporation ​ ​ Chipmore International Trading Company Ltd. ​ ​ ChipMOS Technologies Inc. ​ ​ Global Testing Corporation ​ ​ Greatek Electronics Inc. ​ ​ King Yuan Electronics Co., Ltd. ​ ​ Micro Silicon Electronics Corp. ​ ​ LB Semicon, Inc. ​ ​ Union Semiconductor Co., Ltd. ​ ​ YoungTek Electronics Corp. ​ ​ ​ ​ ​ ​ Intellectual Property As of March 31, 2023, we held a total of 2,900 patents, including 1,268 in Taiwan, 967 in the United States, 564 in China, and 101 in other countries.
Stemco., Ltd. ​ Chipbond Technology Corporation Chipbond Technology Corporation ​ Chipmore International Trading Company Ltd. ​ ChipMOS Technologies Inc. ​ Global Testing Corporation ​ Greatek Electronics Inc. ​ Jiangsu Changjiang Electronics Technology Co., Ltd. ​ King Yuan Electronics Co., Ltd. ​ Micro Silicon Electronics Corp. ​ Nepes Corporation ​ Taiwan IC Packaging Corporation ​ LB Lusem Co., Ltd. ​ Union Semiconductor Co., Ltd. ​ ​ 51 Table of Contents ​ ​ Chip Probe Testing ​ Chipbond Technology Corporation ​ ​ Chipmore International Trading Company Ltd. ​ ​ ChipMOS Technologies Inc. ​ ​ Global Testing Corporation ​ ​ Greatek Electronics Inc. ​ ​ King Yuan Electronics Co., Ltd. ​ ​ Micro Silicon Electronics Corp. ​ ​ LB Semicon, Inc. ​ ​ Union Semiconductor Co., Ltd. ​ ​ YoungTek Electronics Corp. ​ ​ ​ ​ ​ ​ Intellectual Property As of March 31, 2024, we held a total of 2,772 patents, including 1,182 in Taiwan, 916 in the United States, 560 in China, and 114 in other countries.
This consolidates our market presence in the emerging e-reading and e-signage segments from 2022 and onward. ​ 32 Table of Contents The following table summarizes the features of our Electronic Paper Display (EPD) solutions: ​ Product Features Electronic Paper Display (EPD) Source Drivers ​ ● Features 320 to 1296 output channels ● output driving voltage ranging from 15 up to 50v ● input logic voltage ranging from standard 3.3V to low power 1.8V ● low power consumption and low EMI ● support TTL, mini-LVDS cascade modulated driver interface, or MIPI high-speed interface and customized interface technologies ● support COF and COG package types ​ ​ ​ Electronic Paper Display (EPD) Gate Drivers ​ ​ ● 100 to 972 output channels ● output driving voltage ranging from 10 up to 50v ● input logic voltage ranging from standard 3.3V to low power 1.8V low power consumption ● support COF and COG package types ​ ​ ​ Electronic Paper Display (EPD) Timing Controller ​ ● Support MIPI 4 lane input interface ● Support TTL, mini-LVDS output interface ● Support maximum resolution 3840x2160 ● Use USB/SPI/I2C control interface ● Support LPDDR2 memory ​ ​ ​ Electronic Shelf Label (ESL) Integrated Drivers ​ ● Highly integrated chip embedded with source driver, timing controller and power circuit ● Source driver output driving voltage ranging up to 30V ● Support COG package types ​ ASIC service From 2012, we successfully completed several ASIC service projects for Japan top TV, Projector and HMD makers with advanced and high-performance customized video processing chips.
This consolidates our market presence in the emerging e-reading and e-signage segments from 2022 and onward. ​ 33 Table of Contents The following table summarizes the features of our Electronic Paper Display (EPD) solutions: ​ Product Features Electronic Paper Display (EPD) Source Drivers ​ ● Features 320 to 1296 output channels ● output driving voltage ranging from 15 up to 50v ● input logic voltage ranging from standard 3.3V to low power 1.8V ● low power consumption and low EMI ● support TTL, mini-LVDS cascade modulated driver interface, or MIPI high-speed interface and customized interface technologies ● support COF and COG package types ​ ​ ​ Electronic Paper Display (EPD) Gate Drivers ​ ​ ● 100 to 972 output channels ● output driving voltage ranging from 10 up to 50v ● input logic voltage ranging from standard 3.3V to low power 1.8V low power consumption ● support COF and COG package types ​ ​ ​ Electronic Paper Display (EPD) Timing Controller ​ ● Support MIPI 4 lane input interface ● Support TTL, mini-LVDS output interface ● Support maximum resolution 3840x2160 ● Use USB/SPI/I2C control interface ● Support LPDDR2 memory ​ ​ ​ Electronic Shelf Label (ESL) Integrated Drivers ​ ● Highly integrated chip embedded with source driver, timing controller and power circuit ● Source driver output driving voltage ranging up to 30V ● Support COG package types ​ Touch Controller ICs We offer touch controller solutions for capacitive touch panels.
The following table summarizes the features of our ASIC service: ​ ​ ​ Product Features ASIC Service ​ ● Well-established ASIC development platform, based on our unique video processor and image processing technologies. ● offer a wide variety of video interface IPs, like LVDS, HDMI, DVI, V-by-one, Display port, MIPI, MHL, etc. ● built-in 8/32- bit microprocessor built-in video processing algorithm like super-high resolution, sun-light readable, MEMC, FRC, etc. ● built-in 3D feature technologies like 2D-to-3D, Glasses-free 3D, 3D multi-view, 3D visual protection, etc. ● support 4K x 2K/ 5K x 2K/ 8K x 4K display ● Depth sensing algorithm and hardware accelerator for 3D sensing and AR/VR applications ​ ​ LCoS and MEMS Products Himax Display, our subsidiary, has contributed to our microdisplay products lines: Color-filter LCoS, Color-sequential LCoS, Front-Lit LCoS, Phase modulation LCoS and MEMS. 33 Table of Contents The latest development of Front-Lit LCoS enables an ultra-compact and extremely power-efficient optical engine by consolidating and integrating LED illumination system and the polarization beam splitter (PBS) into the micro display module itself.
The following table summarizes the features of our ASIC service: ​ ​ ​ Product Features ASIC Service ​ ● Well-established ASIC development platform, based on our unique video processor and image processing technologies. ● offer a wide variety of video interface IPs, like LVDS, HDMI, DVI, V-by-one, Display port, MIPI, MHL, etc. ● built-in 8/32- bit microprocessor built-in video processing algorithm like super-high resolution, sun-light readable, MEMC, FRC, etc. ● built-in 3D feature technologies like 2D-to-3D, Glasses-free 3D, 3D multi-view, 3D visual protection, etc. ● support 4K x 2K/ 5K x 2K/ 8K x 4K display ● Depth sensing algorithm and hardware accelerator for 3D sensing and AR/VR applications ​ ​ LCoS and MEMS Products Himax Display, our subsidiary, has contributed to our microdisplay products lines: Color-filter LCoS, Color-sequential LCoS, Front-Lit LCoS, Phase modulation LCoS and MEMS.
We may sell our products through agents or distributors for certain products or in certain regions. As of December 31, 2022, we sold our products to more than 200 customers. Our ten largest customers together accounted for approximately 77.7%, 79.5% and 76.7% of our revenues in 2020, 2021 and 2022, respectively.
We may sell our products through agents or distributors for certain products or in certain regions. As of December 31, 2023, we sold our products to around 300 customers. Our ten largest customers together accounted for approximately 79.5%, 76.7% and 74.1% of our revenues in 2021, 2022 and 2023, respectively.
The main products are Power Managements ICs (PMIC), Programmable Gamma OP ICs (PGOP) and Level Shifter ICs (LS). In recent years, PMIC/PGOP 2-in-1 and PMIC/PGOP/LS 3-in-1 PMIC have gradually become the mainstream solutions. 34 Table of Contents Power Management ICs A power management IC integrates several power components to fulfill system power requirements.
The main products are Power Managements ICs (PMIC), Programmable Gamma OP ICs (PGOP) and Level Shifter ICs (LS). In recent years, PMIC/PGOP 2-in-1 and PMIC/PGOP/LS 3-in-1 PMIC have gradually become the mainstream solutions. Besides, Himax also provides power management solutions for OLED notebooks. Power Management ICs A power management IC integrates several power components to fulfill system power requirements.
We also compete with worldwide suppliers such as Silergy Corp., and Rohm Co., Ltd. For CMOS image sensor products, our focus is on machine vision. Competition in this space is primarily from OmniVision Technologies Inc., Sony Corporation, Pixart Imaging Inc. and Samsung Semiconductor, Inc.
We also compete with worldwide suppliers such as Silergy Corp., and Rohm Co., Ltd. For CMOS image sensor products, our focus is on machine vision. Competition in this space is primarily from OmniVision Technologies Inc., Galaxycore, Silicon Optronics, Inc (SOI), Pixart Imaging Inc. and Smartsens Technology (Shanghai) Co. LTD.
(2) Indirectly, through our 100.0% ownership of Himax Technologies (Samoa), Inc. (3) Indirectly, through our 83.5% ownership of Himax Display, Inc. (4) Indirectly, through our 98.4% ownership of Himax Imaging, Ltd. 51 Table of Contents 4.D. Property, Plants and Equipment Our corporate headquarters are located at a 22,172 square meter facility within the Tree Valley Industrial Park in Tainan, Taiwan.
(3) Indirectly, through our 92.0% ownership of Himax Display, Inc. 54 Table of Contents (4) Indirectly, through our 98.4% ownership of Himax Imaging, Ltd. (5) Indirectly, through our 49.0% ownership of Viewsil Microelectronics (Kunshan) Limited. 4.D. Property, Plants and Equipment Our corporate headquarters are located at a 22,172 square meter facility within the Tree Valley Industrial Park in Tainan, Taiwan.
The following table sets forth the features of our WE1 AI Processor product: ​ ​ ​ Product ​ Features WE1 AI Processor ​ ● Ultralow power consumption: 40 uW/MHz ● Support image, voice trigger simultaneously to wake up system ● Optimized multi-layer power states for always-on applications ● Ready-for- use software package and Machine Learning Library, including device driver, SDK and embARC Machine Learning Inference Library to support Google TensorFlow Lite Micro framework ● ARC-EM9D 32-bit DSP: Frequency up to 400MHz, ● Memory: Up to 2MByte SRAM ● High performance pixel processing accelerator and JPEG codec ● Security Engine: Support secure boot, secure FW update, secure debug mode, Support AES 128bits, RSA 2048bits, Hash-256, TRNG, Secure key management ● Peripheral: 1/4/8-bit camera interface, I2C/SPI master/slave, UART, PWM, GPIO with 5 wake-up pins, 12-bit ADC with 4 channels, up to 1Msps, RTC Timer ● Also support image pre-rolling feature for better security offering. ​ 43 Table of Contents Core Technologies and Know-How Driving System Technology.
We are very encouraged by the traction this relatively new product line has generated in a short amount of time and expect to see increasing sales contribution moving forward. 45 Table of Contents The following table sets forth the features of our WiseEye product lines: ​ ​ ​ Product ​ Features WiseEye1 AI Processor ​ ● Ultralow power consumption: 40 uW/MHz ● Support image, voice trigger simultaneously to wake up system ● Optimized multi-layer power states for always-on applications ● Ready-for- use software package and Machine Learning Library, including device driver, SDK and embARC Machine Learning Inference Library to support Google TensorFlow Lite Micro framework ● ARC-EM9D 32-bit DSP: Frequency up to 400MHz, ● Memory: Up to 2MByte SRAM ● High performance pixel processing accelerator and JPEG codec ● Security Engine: Support secure boot, secure FW update, secure debug mode, Support AES 128bits, RSA 2048bits, Hash-256, TRNG, Secure key management ● Peripheral: 1/4/8-bit camera interface, I2C/SPI master/slave, UART, PWM, GPIO with 5 wake-up pins, 12-bit ADC with 4 channels, up to 1Msps, RTC Timer ● Also support image pre-rolling feature for better security offering.
The following table shows certain details of our products: ​ Product Size and Resolution Color-Filter LCoS Microdisplays ​ ● 0.28” (320x3x240 pixels) QVGA ● 0.29” (800x3x480 pixels) WVGA ● 0.35” (1280x3x720 pixels) HD ● Customized design ​ Color-Sequential LCoS Microdisplays ​ ● 0.22” (640 x 360 pixels) nHD ● 0.37” (1366 x 768 pixels) WXGA ● 0.37” (1920 x 1080 pixels) Full HD ● Customized design ​ Front-Lit Color Filter LCoS ​ ● 0.22” (640 x 3x 360 pixels) nHD ● 0.35” (1280 x3x 720 pixels) HD ● Customized design ​ ​ ​ Phase Modulation LCoS ​ ● Selective phase range based on the required response time. ● Analog drive scheme with 120Hz refresh frame rate to reduces optical flicker and provides stable phase response over time. ● Customized design ● Operated in full phase modulation (0~2π) in visible range ​ MEMS ​ ● 0 .55” (1280 x 800 pixels) WXGA ​ Power ICs Himax provides TFT-LCD television, monitor and notebooks power management solutions.
The following table shows certain details of our products: ​ Product Size and Resolution Color-Filter LCoS Microdisplays ​ ● 0.28” (320x3x240 pixels) QVGA ● 0.29” (800x3x480 pixels) WVGA ● 0.35” (1280x3x720 pixels) HD ● Customized design ​ Color-Sequential LCoS Microdisplays ​ ● 0.22” (640 x 360 pixels) nHD ● 0.37” (1366 x 768 pixels) WXGA ● 0.37” (1920 x 1080 pixels) Full HD ● Customized design ​ Front-Lit Color Filter LCoS ​ ● 0.22” (640 x 3x 360 pixels) nHD ● 0.35” (1280 x3x 720 pixels) HD ● Customized design ​ ​ ​ Front-Lit Color Sequential LCoS ​ ● Low power and high efficiency ● Display diagonal : 0.243” ● Size(W*L*H) : 9*13.9*4 mm ● Volume: 0.5 c.c. ● Resolution: 1024x1024 ● Brightness: 110,000 nits (Typ.); 180,000 nits (Max.) ● LED Power : 300 mW (Typ.); 500 mW (Max.) ​ ​ ​ Phase Modulation LCoS ​ ● Selective phase range based on the required response time. ● Analog drive scheme with 120Hz refresh frame rate to reduces optical flicker and provides stable phase response over time. ● Customized design ● Operated in full phase modulation (0~2π) in visible range ​ MEMS ​ ● 0 .55” (1280 x 800 pixels) WXGA ​ 36 Table of Contents Power ICs Himax provides TFT-LCD television, monitor and notebooks power management solutions.
Our WLO business hit inflection in the middle of 2017 when we began mass shipment to an anchor customer. The overall 2018 shipment increased considerably year-over-year because of the customer’s large-scale adoption in more models. In 2019, we continued the strong shipment momentum from 2018 to fulfill an anchor customer’s higher demand with a significant year-over-year increase.
The overall 2018 shipment increased considerably year-over-year because of the customer’s large-scale adoption in more models. In 2019, we continued the strong shipment momentum from 2018 to fulfill an anchor customer’s higher demand with a significant year-over-year increase.
The expiration dates of our patents range from 2023 to 2042. We also have a total of 45 pending patent applications in Taiwan, 95 in the United States and 245 in other jurisdictions, including the PRC, Japan, Korea, Israel and Europe.
The expiration dates of our patents range from 2024 to 2043. We also have a total of 48 pending patent applications in Taiwan, 112 in the United States and 238 in other jurisdictions, including the PRC, Japan, Korea, Israel and Europe.
In addition, TDDI IC integrates both display driver and in-cell touch functions and is usually adopted by small and medium sized display applications. For certain highly integrated application, such as smartphone, Timing Controller feature is also embedded in TDDI. ● Timing Controller. The timing controller receives image data and converts the format for the source drivers’ input.
In addition, TDDI IC integrates both display driver and in-cell touch functions and is usually adopted by small and medium sized display applications, whereas Timing Controller feature is also embedded in TDDI. 23 Table of Contents ● Timing Controller. The timing controller receives image data and converts the format for the source drivers’ input.
We offer entire optical solutions for customers who need compact and easy-to-handle optical products on their electronic devices. 38 Table of Contents Combining traditional optical lens design, precise mold control and semiconductor manufacturing expertise, our WLO lens with integrated waveguide, refractive optics and diffractive optical element (DOE) is one of the best solutions for next generation computational imaging module for 2D/3D illumination and 3D dot projector, which can be applied to 3D face recognition, 3D sensing, 3D reconstruction, and gesture control.
Combining traditional optical lens design, precise mold control and semiconductor manufacturing expertise, our WLO lens with integrated waveguide, refractive optics and diffractive optical element (DOE) is one of the best solutions for next generation computational imaging module for 2D/3D illumination and 3D dot projector, which can be applied to 3D face recognition, 3D sensing, 3D reconstruction, and gesture control.
The merits of our technology feature in resolution, power consumption, size, cost, optical engine design, and image quality. Many of our industry-leading customers have demonstrated their state-of-the-art products, including pico-projector, holographic display, AR glasses and AR HUD system, with Himax LCoS technology inside at the 2020 CES with positive market feedbacks.
Many of our industry-leading customers have demonstrated their state-of-the-art products, including pico-projector, holographic display, AR glasses and AR HUD system, with Himax LCoS technology inside at the 2020 CES with positive market feedbacks.
The testing of display drivers also requires special testers that can support high-channel and high-voltage output semiconductors.
The testing of display drivers also requires special testers that can support high-channel and high-voltage output semiconductors. Such testers are not standard in the semiconductor industry.
This represented a remarkable achievement and an illustration of the robustness of our AI solution. In 2022, we continue to support the mass production of Dell’s notebook and other end-point AI applications, such as shared bike parking, video conference device, door lock and medical capsule endoscope and many others.
Meanwhile, we continue to support the mass production of Dell’s notebook and other end-point AI applications, such as shared bike parking, video conference device, door lock and medical capsule endoscope and many others.
Himax UHD TV TCON has mass production at all major China LCD makers. We also provide gaming TCON for the new QHD 360Hz and UHD 240Hz gaming monitor and notebook. For high-end gaming requirement, we have developed eDP 8.1G TCON to increase bandwidth.
Himax UHD TV TCON has mass production at all major China LCD makers. We also provide gaming TCON for the new QHD 360Hz and UHD 240Hz gaming monitor and notebook.
In addition, we have offices in Hsinchu and Taipei, Taiwan; Foshan, Fuqing, Ningbo, Beijing, Shanghai, Shenzhen, Suzhou, Wuhan, Hefei, Chengdu, Fuzhou, Nanjing, Chongqing, Xi’an and Xiamen, China; Tokyo, Japan; Asan-si and Bundang-gu, South Korea; Munich, Germany and Irvine and San Jose, California and Minneapolis, Minnesota, USA. Investor inquiries should be directed to our Investor Relations department by email to hx_ir@himax.com.tw.
In addition, we have offices in Hsinchu and Taipei, Taiwan; Foshan, Fuqing, Ningbo, Beijing, Shanghai, Shenzhen, Suzhou, Wuhan, Hefei, Chengdu, Fuzhou, Nanjing, Chongqing, Xi’an and Xiamen, China; Tokyo, Japan; Asan-si and Bundang-gu, South Korea; Munich, Germany and Irvine and San Jose, California, Minneapolis, Minnesota and Detroit, Michigan, USA.
The color filter line is a critical and unique process for our proprietary single-panel color LCoS microdisplays. An in-house color filter facility enhances the competitiveness of our color-filter LCoS microdisplays products and creates value for our customers. ​ ITEM 4A. UNRESOLVED STAFF COMMENTS Not applicable. ​
This in-house facility provides color filter for CMOS image sensor and LCoS products. The color filter line is a critical and unique process for our proprietary single-panel color LCoS microdisplays. An in-house color filter facility enhances the competitiveness of our color-filter LCoS microdisplays products and creates value for our customers.
One illustration is our WLO technology being deployed by one VR player to empower 3D perception sensing for precise controller-free gesture recognition.
One illustration is our WLO technology being deployed by one VR player to empower 3D perception sensing for precise controller-free gesture recognition. We initialed volume production starting in second quarter of 2023.
We refer to these manufacturing stages and material requirements collectively as the “supply chain”. Panel manufacturers typically operate at high levels of capacity utilization and require a reliable supply of display drivers. A shortage of display drivers, or a disruption to this supply, may disrupt panel manufacturers’ operations.
Panel manufacturers typically operate at high levels of capacity utilization and require a reliable supply of display drivers. A shortage of display drivers, or a disruption to this supply, may disrupt panel manufacturers’ operations.
Deeply rooted in core wafer level optics technologies, we provide highly customized optical solutions and high-volume manufacturing to many Tier-1 customers such as structured lighted and ToF 3D sensing on mobile devices, AR/VR gadgets, automotive, biomedical devices and many other AIoT applications.
Deeply rooted in core wafer level optics technologies, we provide highly customized optical solutions and high-volume manufacturing to many Tier-1 customers such as structured lighted and ToF 3D sensing on mobile devices, AR/VR gadgets, automotive, biomedical devices and many other AIoT applications. 41 Table of Contents Our WLO business hit inflection in the middle of 2017 when we began mass shipment to an anchor customer.
LC Lens design and sales ROC 62.3 % (1) Himax IGI Precision Ltd. 3D micro and nano structure mastering and prototype replication Delaware, USA 100.0 % (1) CM Visual Technology Corp. (CMVT) Omniwide film products design and sales ROC 66.7 % (1) (1) Indirectly, through our 100.0% ownership of Himax Technologies Limited.
LC Lens design and sales ROC 62.3 % (1) Himax IGI Precision Ltd. 3D micro and nano structure mastering and prototype replication Delaware, USA 100.0 % (1) CM Visual Technology Corp.
LED driver IC is designed to dim the LEDs with critical features such as high current accuracy, high current matching, short LED protection, open LED protection, over voltage protection, ghosting effect reduction and current sink leakage protection etc. ​ Product Features Customer ASIC ​ ● By Customer Specification ​ CMOS Image Sensor Products The CMOS image sensor products are developed by our subsidiary, Himax Imaging.
The advantages of LEDs as light sources are the small size, fast switching, low power consumption and long lifetime etc. 38 Table of Contents LED driver IC is designed to dim the LEDs with critical features such as high current accuracy, high current matching, short LED protection, open LED protection, over voltage protection, ghosting effect reduction and current sink leakage protection etc. ​ Product Features NB backlight driver IC and local diming mini-LED backlight driver IC ​ ● ASIC by Customer Specification ​ CMOS Image Sensor Products The CMOS image sensor products are developed by our subsidiary, Himax Imaging.
In 2019, we further prioritized our focus on ultralow power computer vision- Always-On Sensor (“AoS”) as the demand for battery-powered smart device with AI intelligent sensing is rapidly growing.
In 2019, we further prioritized our focus on ultralow power computer vision- Always-On Sensor (“AoS”) as the demand for battery-powered smart device with AI intelligent sensing is rapidly growing. Together with the technologies we already developed, such as Near Infrared (“NIR”) sensor, we can provide our customers the best integrated solutions for several specific domains.
We expect to see more design-wins awarded across a broad customer base and a high variety of applications leading to robust sales growth for this new high margin product line moving forward. 42 Table of Contents The following table sets forth the features of our ultralow power WiseEye smart image sensing total solutions: ​ ​ ​ Product Features WiseEye TM AI total solution ​ ● The total solution incorporates Himax proprietary ultralow power WiseEye AI processor, always-on CMOS image sensor, and CNN-based computer vision AI algorithm, featuring tinyML AI in tiny form factor, ultralow power consumption, low latency, privacy protection and optimized cost. ● Total solution supports use of a variety of Himax CMOS image sensors –HM11B1 RGB/IR/AI hybrid sensor.
The following table sets forth the features of our ultralow power WiseEye smart image sensing total solutions: ​ ​ ​ Product Features WiseEye TM AI total solution ​ ● The total solution incorporates Himax proprietary ultralow power WiseEye AI processor, always-on CMOS image sensor, and CNN-based computer vision AI algorithm, featuring tinyML AI in tiny form factor, ultralow power consumption, low latency, privacy protection and optimized cost. ● Total solution supports use of a variety of Himax CMOS image sensors.
Such testers are not standard in the semiconductor industry. 24 Table of Contents Supply Chain Management The manufacturing of display drivers is complex and requires several manufacturing stages such as wafer fabrication, gold bumping, and assembly and testing, and the availability of materials such as the processed tape used in TAB packaging.
Supply Chain Management The manufacturing of display drivers is complex and requires several manufacturing stages such as wafer fabrication, gold bumping, and assembly and testing, and the availability of materials such as the processed tape used in TAB packaging. We refer to these manufacturing stages and material requirements collectively as the “supply chain”.
Smartphones and tablet have gained greater popularity among small and medium-sized display drivers and enjoyed high growth in recent years. This has also contributed to increased demand for larger size and higher resolution smartphone displays. In 2016, Himax developed a series of single chip touch display driver integrated circuit (TDDI) for advanced in-cell touch display panel.
This has also contributed to increased demand for larger size and higher resolution smartphone displays. In 2016, Himax developed a series of single chip touch display driver integrated circuit (TDDI) for advanced in-cell touch display panel. Himax started the shipments of in-cell TDDI for some smartphones in 2016 and extended TDDI solution to tablet application in 2017.
This innovative approach enables wafer level optics to manufacture micro/nano optics structure and high temperature resistance, making the compatible Surface-Mount Technology or SMT reflow process possible.
This innovative approach enables wafer level optics to manufacture micro/nano optics structure and high temperature resistance, making the compatible Surface-Mount Technology or SMT reflow process possible. We offer entire optical solutions for customers who need compact and easy-to-handle optical products on their electronic devices.
In addition, Himax Taiwan owns and operates a fab with 1,431 square meters of floor space in a building leased from Innolux in Tainan, where it established an in-house color filter facility that commenced shipments from 2010. This in-house facility provides color filter for CMOS image sensor and LCoS products.
In addition, Himax Taiwan owns and operates a fab with 1,431 square meters of floor space in a building leased from Innolux in Tainan, where it established an in-house color filter facility that commenced shipments from 2010. The building lease was terminated early at the end of January 2024, and we relocated the color filter facility to our Fab 2.
We have also expanded certain facilities for LCoS and WLO products to accommodate new customers and new applications located at our headquarters in Tainan, Taiwan.
However, the building lease was terminated early at the end of January 2024, and we relocated the WLO facility to our Fab 2. We have also expanded certain facilities for LCoS and WLO products to accommodate new customers and new applications located at our headquarters in Tainan, Taiwan.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeConsolidated Results of Operations The following table sets forth a summary of our consolidated statements of profit or loss as a percentage of revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2020 2021 2022 ​ Revenues ​ 100.0 % 100.0 % 100.0 % Costs and expenses: ​ ​ ​ ​ ​ ​ Cost of revenues ​ 75.1 51.6 ​ 59.5 ​ Research and development ​ 13.8 9.8 ​ 14.6 ​ General and administrative ​ 2.7 1.9 ​ 2.4 ​ Sales and marketing ​ 1.9 1.5 ​ 2.1 ​ Total costs and expenses ​ 93.5 64.8 ​ 78.6 ​ Operating income ​ 6.5 35.2 ​ 21.4 ​ Non-operating income (loss) ​ (0.1) — ​ 1.6 ​ Income tax expense ​ 1.3 7.2 ​ 3.4 ​ Profit for the year ​ 5.1 28.0 ​ 19.6 ​ Loss attributable to noncontrolling interests ​ 0.2 0.2 ​ 0.1 ​ Profit attributable to Himax stockholders ​ 5.3 28.2 ​ 19.7 ​ ​ Year to Year Comparisons ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ ​ ​ ​ ​ ​ % Change ​ ​ ​ 2020 ​ 2021 ​ 2022 ​ from 2021 ​ ​ ​ (in thousands, except for percentages) ​ Consolidated Statements of Profit or Loss Data: ​ ​ ​ Revenues ​ $ 887,282 ​ $ 1,547,097 ​ $ 1,201,339 (22.3) % Costs and expenses: ​ ​ ​ Cost of revenues ​ 666,501 ​ 798,519 ​ 714,233 (10.6) % Research and development ​ 122,265 ​ 151,386 ​ 175,557 16.0 % General and administrative ​ 23,915 ​ 29,281 ​ 28,503 (2.7) % Expected credit loss ​ — ​ (190) ​ — — ​ Sales and marketing ​ 16,675 ​ 23,080 ​ 25,459 10.3 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total costs and expenses ​ 829,356 ​ 1,002,076 ​ 943,752 (5.8) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income ​ 57,926 ​ 545,021 ​ 257,587 (52.7) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-operating income (loss) ​ (1,054) ​ (429) ​ 18,978 — Income tax expense . ​ 11,712 ​ 110,657 ​ 41,098 (62.9) % Profit for the year ​ 45,160 ​ 433,935 ​ 235,467 (45.7) % Loss attributable to noncontrolling interest ​ 1,974 ​ 2,961 ​ 1,515 (48.8) % Profit attributable to Himax stockholders ​ $ 47,134 ​ $ 436,896 ​ $ 236,982 (45.8) % ​ 61 Table of Contents Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 Revenues .
Biggest changeConsolidated Results of Operations The following table sets forth a summary of our consolidated statements of profit or loss as a percentage of revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2021 2022 2023 ​ Revenues ​ 100.0 % 100.0 % 100.0 % Costs and expenses: ​ ​ ​ ​ ​ ​ Cost of revenues ​ 51.6 59.5 ​ 72.1 ​ Research and development ​ 9.8 14.6 ​ 18.1 ​ General and administrative ​ 1.9 2.4 ​ 2.7 ​ Sales and marketing ​ 1.5 2.1 ​ 2.5 ​ Total costs and expenses ​ 64.8 78.6 ​ 95.4 ​ Operating income ​ 35.2 21.4 ​ 4.6 ​ Non-operating income (loss) ​ — 1.6 ​ 0.1 ​ Income tax expense (benefit) ​ 7.2 3.4 ​ (0.5) ​ Profit for the year ​ 28.0 19.6 ​ 5.2 ​ Loss attributable to noncontrolling interests ​ 0.2 0.1 ​ 0.2 ​ Profit attributable to Himax stockholders ​ 28.2 19.7 ​ 5.4 ​ ​ 64 Table of Contents Year to Year Comparisons ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ ​ ​ ​ ​ ​ % Change ​ ​ ​ 2021 ​ 2022 ​ 2023 ​ from 2022 ​ ​ ​ (in thousands, except for percentages) ​ Consolidated Statements of Profit or Loss Data: ​ ​ ​ Revenues ​ $ 1,547,097 ​ $ 1,201,339 ​ $ 945,428 (21.3) % Costs and expenses: ​ ​ ​ Cost of revenues ​ 798,519 ​ 714,233 ​ 681,931 (4.5) % Research and development ​ 151,386 ​ 175,557 ​ 171,392 (2.4) % General and administrative ​ 29,281 ​ 28,503 ​ 25,037 (12.2) % Expected credit loss ​ (190) ​ — ​ — — ​ Sales and marketing ​ 23,080 ​ 25,459 ​ 23,856 (6.3) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total costs and expenses ​ 1,002,076 ​ 943,752 ​ 902,216 (4.4) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income ​ 545,021 ​ 257,587 ​ 43,212 (83.2) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-operating income (loss) ​ (429) ​ 18,978 ​ 1,181 (93.8) % Income tax expense (benefit) . ​ 110,657 ​ 41,098 ​ (5,028) (112.2) % Profit for the year ​ 433,935 ​ 235,467 ​ 49,421 (79.0) % Loss attributable to noncontrolling interest ​ 2,961 ​ 1,515 ​ 1,195 (21.1) % Profit attributable to Himax stockholders ​ $ 436,896 ​ $ 236,982 ​ $ 50,616 (78.6) % ​ Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Revenues .
Under the long-term incentive plan, we granted RSUs on December 30, 2005 to our employees and directors and again on September 29, 2006, September 26, 2007, September 29, 2008, September 28, 2009, September 28, 2010, September 28, 2011, September 26, 2012, September 26, 2013, September 26, 2014, September 25, 2015, September 28, 2016, September 29, 2017, September 26, 2018, September 28, 2020, September 28, 2021 and September 28, 2022 to our employees.
Under the long-term incentive plan, we granted RSUs on December 30, 2005 to our employees and directors and again on September 29, 2006, September 26, 2007, September 29, 2008, September 28, 2009, September 28, 2010, September 28, 2011, September 26, 2012, September 26, 2013, September 26, 2014, September 25, 2015, September 28, 2016, September 29, 2017, September 26, 2018, September 28, 2020, September 28, 2021, September 28, 2022 and September 26, 2023 to our employees.
Such cyclicality and price fluctuations could negatively impact our business or results of operations.” The revenue expansion of our non-driver products as well as TFT-LCD product trending toward high resolution and any other new product introduction help to mitigate these risks.
Such cyclicality and price fluctuations could negatively impact our business or results of operations.” The revenue expansion of our non-driver products as well as TFT-LCD and AMOLED products trending toward high resolution and any other new product introduction help to mitigate these risks.
We measure and recognize compensation expense for all share-based payments at fair value. Set forth below is a summary of our historical share-based compensation plans for the years ended December 31, 2020, 2021 and 2022 as reflected in our consolidated financial statements. However, we did not grant RSUs in 2019 but granted stock options to employees instead.
We measure and recognize compensation expense for all share-based payments at fair value. Set forth below is a summary of our historical share-based compensation plans for the years ended December 31, 2021, 2022 and 2023 as reflected in our consolidated financial statements. However, we did not grant RSUs in 2019 but granted stock options to employees instead.
The capex budget will be funded through our internal resources and banking facilities, if so needed. We will continue to make capital expenditures to meet the expected growth of our operations. We believe that our working capital and borrowings under our existing and future credit lines should be sufficient for our present requirements. 65 Table of Contents 5.C.
The capex budget will be funded through our internal resources and banking facilities, if so needed. We will continue to make capital expenditures to meet the expected growth of our operations. We believe that our working capital and borrowings under our existing and future credit lines should be sufficient for our present requirements. 69 Table of Contents 5.C.
For the years ended December 31, 2020, 2021 and 2022, we did not recognize any impairment loss on non-financial assets. Goodwill We evaluate goodwill for impairment at least annually, or more frequently when there is an indication that the cash-generating unit (CGU) may be impaired.
For the years ended December 31, 2021, 2022 and 2023, we did not recognize any impairment loss on non-financial assets. Goodwill We evaluate goodwill for impairment at least annually, or more frequently when there is an indication that the cash-generating unit (CGU) may be impaired.
However, the impact of declining average selling prices on our profitability might be offset or mitigated to a certain extent by increased volume as lower prices may stimulate demand and thereby drive sales and TFT-LCD panel products trending toward higher resolution. 53 Table of Contents Unit Shipments Our performance is also affected by the number of semiconductors we ship, or unit shipments.
However, the impact of declining average selling prices on our profitability might be offset or mitigated to a certain extent by increased volume as lower prices may stimulate demand and thereby drive sales and TFT-LCD and OLED panel products trending toward higher resolution. Unit Shipments Our performance is also affected by the number of semiconductors we ship, or unit shipments.
Moreover, our different non-driver products vary in average selling prices and costs. The proportion of non-driver business would also affect our financial position and results of operations. For the past few years, we have experienced operating losses from our non-driver business.
Moreover, our different non-driver products vary in average selling prices and costs. 57 Table of Contents The proportion of non-driver business would also affect our financial position and results of operations. For the past few years, we have experienced operating losses from our non-driver business.
Operating Results For discussion related to our financial condition, changes in financial condition, and the results of operations for 2021 compared to 2020, refer to “Part I, Item 5.
Operating Results For discussion related to our financial condition, changes in financial condition, and the results of operations for 2022 compared to 2021, refer to “Part I, Item 5.
Cost of Revenues The principal items of our cost of revenues are: ● cost of wafer fabrication; ● cost of processed tape used in TAB packaging; ● cost of gold bumping, assembly and testing; and ● other costs and expenses. We outsource the manufacturing of our semiconductors and semiconductor solutions to semiconductor manufacturing service providers.
Cost of Revenues The principal items of our cost of revenues are: ● cost of wafer fabrication; 61 Table of Contents ● cost of processed tape used in TAB packaging; ● cost of gold bumping, assembly and testing; and ● other costs and expenses. We outsource the manufacturing of our semiconductors and semiconductor solutions to semiconductor manufacturing service providers.
Factors Affecting Our Performance Our business, financial position and results of operations, as well as the period-to-period comparability of our financial results, are significantly affected by a number of factors, some of which are beyond our control, including: ● average selling prices; ● unit shipments; ● product mix; ● design wins; ● cost of revenues and cost reductions; ● supply chain management; ● share-based compensation expenses and cash awards; and ● tax credits.
Factors Affecting Our Performance Our business, financial position and results of operations, as well as the period-to-period comparability of our financial results, are significantly affected by a number of factors, some of which are beyond our control, including: ● average selling prices; ● unit shipments; ● product mix; ● design wins; ● cost of revenues and cost reductions; ● supply chain management; ● share-based compensation expenses and cash awards; and ● tax credits. 56 Table of Contents Average Selling Prices Our performance is affected by the selling prices of each of our products.
We expect to continue increasing our spending on research and development in absolute dollar amounts in the future as we continue to increase our research and development headcount and associated costs to pursue additional product development opportunities. As a percentage of revenues, our research and development expenses in 2020, 2021 and 2022 were 13.8%, 9.8% and 14.6%, respectively.
We expect to continue increasing our spending on research and development in absolute dollar amounts in the future as we continue to increase our research and development headcount and associated costs to pursue additional product development opportunities. As a percentage of revenues, our research and development expenses in 2021, 2022 and 2023 were 9.8%, 14.6% and 18.1%, respectively.
We did not grant RSUs in 2019 but granted stock options to employees instead. Share-based compensation expenses recorded regarding RSUs under the long-term incentive plan totaled $4.8 million, $23.8 million and $20.0 million in 2020, 2021 and 2022, respectively. Share-based compensation expenses recorded regarding stock options under the long-term incentive plan totaled $0.7 million in 2020. Cash Awards.
We did not grant RSUs in 2019 but granted stock options to employees instead. Share-based compensation expenses recorded regarding RSUs under the long-term incentive plan totaled $23.8 million, $20.0 million and $12.1 million in 2021, 2022 and 2023, respectively. Cash Awards.
The inventory write-downs in 2020, 2021 and 2022 were approximately $11.9 million, $9.4 million and $22.2 million, respectively, and were included in cost of revenues in our consolidated statements of profit or loss. 59 Table of Contents Impairment of Non-financial Assets other than Goodwill We routinely review our non-financial assets at the reporting date to determine whether there is any indication of impairment.
The inventory write-downs in 2021, 2022 and 2023 were approximately $9.4 million, $22.2 million and $21.5 million, respectively, and were included in cost of revenues in our consolidated statements of profit or loss. Impairment of Non-financial Assets other than Goodwill We routinely review our non-financial assets at the reporting date to determine whether there is any indication of impairment.
For enhancing the guaranty, our land, building and improvements of Fab 2 totaling $65.6 million were pledged as collateral for the long-term unsecured borrowings.
For enhancing the guaranty, our land, building and improvements of Fab 2 totaling $63.4 million were pledged as collateral for the long-term unsecured borrowings.
We recognized share-based compensation expenses regarding RSUs under the long-term incentive plan totaling $4.8 million, $23.8 million and $20 million in 2020, 2021 and 2022, respectively. Of the total share-based compensation expenses recognized, $4.8 million, $23.2 million and $17.5 million in 2020, 2021 and 2022, respectively, were settled in cash.
We recognized share-based compensation expenses regarding RSUs under the long-term incentive plan totaling $23.8 million, $20 million and $12.1 million in 2021, 2022 and 2023, respectively. Of the total share-based compensation expenses recognized, $23.2 million, $17.5 million and $9.5 million in 2021, 2022 and 2023, respectively, were settled in cash.
A limited number of customers account for substantially all our revenues. For example, Customer A and its affiliates accounted for 32.6%, 32.1% and 32.3% of our revenues in 2020, 2021 and 2022, respectively.
A limited number of customers account for substantially all our revenues. For example, Customer A and its affiliates accounted for 32.1%, 32.3% and 28.7% of our revenues in 2021, 2022 and 2023, respectively.
Purchase obligations exclude agreements that are cancelable without penalty. Contractual obligations resulting from above purchase orders and agreements with known amounts approximate $2,088 million as of December 31, 2022. Of obligations under above purchase orders and agreements, $625 million is expected to be paid in the next 12 months.
Purchase obligations exclude agreements that are cancelable without penalty. Contractual obligations resulting from above purchase orders and agreements with known amounts approximate $1,415 million as of December 31, 2023. Of obligations under above purchase orders and agreements, $589 million is expected to be paid in the next 12 months.
In addition, our product portfolio also includes timing controllers, operational amplifiers, LCoS microdisplay, power management ICs, CMOS image sensors, 3D sensing, ultralow power WiseEye smart image sensing, wafer level optics products and ASIC service. The 2022 full year revenues totaled $1.2 billion, representing a 22.3% decline compared to 2021.
In addition, our product portfolio also includes timing controllers, operational amplifiers, LCoS microdisplay, power management ICs, CMOS image sensors, 3D sensing, ultralow power WiseEye smart image sensing, wafer level optics products and ASIC service. The 2023 full year revenues totaled $945.4 million, representing a 21.3% decline compared to 2022.
During 2016, our non-driver businesses experienced tremendous growth, primarily driven by the LCOS and WLO businesses due to shipments to one of our leading AR device customers. WLO shipments increased considerably year-over-year in 2018 because of the customer’s large-scale adoption in more models. In 2022, we continued to fulfill anchor customer’s demand for the legacy product.
During 2016, our non-driver businesses experienced tremendous growth, primarily driven by the LCoS and WLO businesses due to shipments to one of our leading AR device customers. WLO shipments increased considerably year-over-year in 2018 because of the customer’s large-scale adoption in more models.
Operating and Financial Review and Prospects,” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2021, which was filed with the United States Securities and Exchange Commission on March 23, 2022. Overview We commenced operations through our predecessor, Himax Taiwan, in June 2001.
Operating and Financial Review and Prospects,” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2022, which was filed with the United States Securities and Exchange Commission on April 6, 2023. 55 Table of Contents Overview We commenced operations through our predecessor, Himax Taiwan, in June 2001.
Financing Activities . Net cash used in financing activities in 2022 was $211.1 million compared to $4.5 million in 2021. This change was due primarily to increases in distribution of cash dividends in 2022 and a decrease of guarantee deposits received from customers.
Financing Activities . Net cash used in financing activities in 2023 was $93.6 million compared to $211.1 million in 2022. This change was due primarily to decrease in distribution of cash dividends in 2023 and a decrease of guarantee deposits received from customers.
Our capital expenditures were incurred primarily in connection with the purchase of property and equipment. Our capital expenditures totaled $5.8 million, $7.6 million and $11.8 million in 2020, 2021 and 2022, respectively. Capital expenditures of $11.8 million in 2022 was mainly for design tools, R&D related equipment as well as in-house tester of our traditional IC design business.
Our capital expenditures were incurred primarily in connection with the purchase of property and equipment. Our capital expenditures totaled $7.6 million, $11.8 million and $23.4 million in 2021, 2022 and 2023, respectively. Capital expenditures of $23.4 million in 2023 was mainly for in-house testers for our IC design business as well as R&D related equipment.
Our flexible AMOLED driver and Tcon for automotive display also successfully ramped up for a customer’s flagship EV model in the first quarter of 2022. The number of awarded projects with worldwide conventional car makers and EV vendors continues to increase.
Additionally, our flexible AMOLED driver and TCON for automotive display have successfully ramped up for a customer’s flagship EV model in the first quarter of 2022, with the number of awarded projects with worldwide conventional car makers and EV vendors on the rise.
As of December 31, 2022, we have not provided for retained earnings tax on the undistributed earnings of approximately $1,282.1 million of our subsidiaries since we have specific plans to reinvest these earnings indefinitely. The undistributed earnings in our foreign subsidiaries are mainly from Himax Taiwan totaling approximately $1,280.8 million as of December 31, 2022.
As of December 31, 2023, we have not provided for retained earnings tax on the undistributed earnings of approximately $1,307.4 million of our subsidiaries since we have specific plans to reinvest these earnings indefinitely. The undistributed earnings in our foreign subsidiaries are mainly from Himax Taiwan totaling approximately $1,305.9 million as of December 31, 2023.
As of December 31, 2022, we had total unused short-term credit lines of $323.2 million, of which $190.7 million belonging to the parent company, Himax Technologies, Inc., needs to be secured with an equal amount of cash and time deposits when borrowing money from banks. Further, we had unused long-term credit lines of $83.5 million.
As of December 31, 2023, we had total unused short-term credit lines of $206.5 million, of which $127.0 million belonging to the parent company, Himax Technologies, Inc., needs to be secured with an equal amount of cash and time deposits when borrowing money from banks. Further, we had unused long-term credit lines of $139.5 million.
As of December 31, 2022, we had short-term secured borrowings of $369.3 million with cash and time deposits of $369.3 million as collateral, and long-term unsecured borrowings of $46.5 million, of which $6.0 million was current portion.
As of December 31, 2023, we had short-term secured borrowings of $453.0 million with cash and time deposits of $453.0 million as collateral, and long-term unsecured borrowings of $40.5 million, of which $6.0 million was current portion.
The increase was primarily due to a gain from disposal of a subsidiary, increases in foreign currency exchange gains and interest income but partially offset by an increase in finance costs. Income Tax Expense. Our income tax expense decreased to $41.1 million in 2022 from $110.7 million in 2021.
The decrease was primarily due to a gain from disposal of a subsidiary in 2022, decrease in foreign currency exchange gains and increase in finance costs but partially offset by an increase in interest income. Income Tax Expense (benefit). Our income tax benefit increased to $5.0 million in 2023 from income tax expense of $41.1 million in 2022.
See “Risk Factors — Risks Related to Our Holding Company Structure — Our ability to receive dividends and other payments or funds from our subsidiaries may be restricted by commercial, statutory and legal restrictions, and thereby materially and adversely affect our ability to grow, fund investments, make acquisitions, pay dividends and otherwise fund and conduct our business.” 64 Table of Contents To address the continuing foundry capacity shortage worldwide, we have entered into strategic agreements with our foundry partners in order to secure their foundry capacity to fulfill our business needs.
See “Risk Factors — Risks Related to Our Holding Company Structure — Our ability to receive dividends and other payments or funds from our subsidiaries may be restricted by commercial, statutory and legal restrictions, and thereby materially and adversely affect our ability to grow, fund investments, make acquisitions, pay dividends and otherwise fund and conduct our business.” 68 Table of Contents During the 2021 timeframe, we took steps to address the ongoing foundry capacity shortage worldwide by entering into strategic agreements with our foundry partners to secure the necessary capacity to meet our business requirements.
Many of our industry-leading customers have demonstrated their state-of-the-art products with our technology embedded in, including AR glasses and LiDAR system.
Many of our industry-leading customers have demonstrated their state-of-the-art products with our technology embedded in, including AR glasses and LiDAR system. Our proprietary front-lit LCoS microdisplay covers LCoS microdisplay, lightguide, and front-lit LED.
Our design-win with Dell for a series of new models that started in 2021 saw meaningful shipment in 2022. We continue to support the mass production of Dell’s notebook and other end-point AI applications, such as shared bike parking, video conference device, door lock and medical capsule endoscope. We anticipate more design-wins awards and growing volume shipments starting 2023.
Our design-win with Dell for a series of new models that started in 2021 saw meaningful shipment in 2022. We continue to support the mass production of Dell’s notebook and other endpoint AI applications, such as shared bike parking, video conference device, smart door lock, smart agriculture, medical capsule endoscope among others.
Operating and Financial Review and Prospects—Operating Results.” 5.E. Critical Accounting Estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Critical Accounting Estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Our industry-first 2-in-1 CMOS image sensor that supports RGB mode for video conferencing and ultralow power AI mode for facial recognition has penetrated the laptop market for the most stylish super slim bezel designs. Given the rapidly expanding AI adoption across the board, we have ultralow power Always-On CMOS image sensor that targets always-on AI applications.
Our industry-first 2-in-1 CMOS image sensor that supports RGB mode for video conferencing and ultralow power AI mode for facial recognition has penetrated the laptop market for the most stylish super slim bezel designs.
The following table sets forth a summary of our cash flows for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2020 2021 2022 ​ ​ (in thousands) Net cash provided by operating activities ​ $ 102,610 ​ $ 388,276 ​ $ 82,908 Net cash provided by (used in) investing activities ​ (22,365) ​ (232,680) ​ ​ 14,998 Net cash provided by (used in) financing activities ​ 3,261 ​ (4,487) ​ ​ (211,068) Net increase (decrease) in cash and cash equivalents ​ 83,883 ​ 151,086 ​ ​ (114,443) Cash and cash equivalents at beginning of period ​ 101,055 ​ 184,938 ​ ​ 336,024 Cash and cash equivalents at end of period ​ 184,938 ​ 336,024 ​ ​ 221,581 ​ Operating Activities .
The following table sets forth a summary of our cash flows for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2021 2022 2023 ​ ​ (in thousands) Net cash provided by operating activities ​ $ 388,276 ​ $ 82,908 ​ $ 152,841 Net cash provided by (used in) investing activities ​ ​ (232,680) ​ ​ 14,998 ​ ​ (88,882) Net cash (used in) financing activities ​ ​ (4,487) ​ ​ (211,068) ​ ​ (93,591) Net increase (decrease) in cash and cash equivalents ​ ​ 151,086 ​ ​ (114,443) ​ ​ (29,832) Cash and cash equivalents at beginning of period ​ ​ 184,938 ​ ​ 336,024 ​ ​ 221,581 Cash and cash equivalents at end of period ​ ​ 336,024 ​ ​ 221,581 ​ ​ 191,749 ​ Operating Activities .
Costs and Expenses Our costs and expenses consist of cost of revenues, research and development expenses, general and administrative expenses, sales and marketing expenses, share-based compensation expenses and cash awards. Costs would be greatly affected by product mix.
A substantial majority of our sales invoices are denominated in U.S. dollars. Costs and Expenses Our costs and expenses consist of cost of revenues, research and development expenses, general and administrative expenses, sales and marketing expenses, share-based compensation expenses and cash awards. Costs would be greatly affected by product mix.
Our position remains unchallenged in the up-and-coming local dimming technology, which not only enhances display contrast for better viewing under bright daylight, but also provides effective power saving, which is critical for larger displays and EV models.
Local dimming technology not only enhances display contrast for better viewing under bright daylight but also provides effective power saving, critical for larger displays and EV models.
Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. 69 Table of Contents Note 4 to our audited consolidated financial statements contains a description that sets forth information about critical judgments, estimates and assumptions in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements. ​
Note 4 to our audited consolidated financial statements contains a description that sets forth information about critical judgments, estimates and assumptions in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements. ​
In addition, to mitigate declining average selling prices, we aim to reduce unit costs by, among other things: ● improving product design (e.g., having smaller die size allows for a larger number of dies on each wafer, thereby reducing the cost of each die); ● improving manufacturing yields through our close collaboration with our semiconductor manufacturing service providers and in our in-house manufacturing facilities; and ● achieving better pricing from a diversified pool of semiconductor manufacturing service providers and suppliers, reflecting our ability to leverage our scale, volume requirements and close relationships as well as our strategy of sourcing from multiple service providers and suppliers.
In addition, to mitigate declining average selling prices, we aim to reduce unit costs by, among other things: ● improving product design (e.g., having smaller die size allows for a larger number of dies on each wafer, thereby reducing the cost of each die); ● improving manufacturing yields through our close collaboration with our semiconductor manufacturing service providers and in our in-house manufacturing facilities; and ● achieving better pricing from a diversified pool of semiconductor manufacturing service providers and suppliers, reflecting our ability to leverage our scale, volume requirements and close relationships as well as our strategy of sourcing from multiple service providers and suppliers. 58 Table of Contents Supply Chain Management Due to the competitive nature of the flat panel display industry and our customers’ need to maintain high capacity utilization in order to reduce unit costs per panel, any delays in the delivery of our products could significantly disrupt our customers’ operations.
The following table sets forth, for the periods indicated, our revenues by amount and our revenues as a percentage of revenues by each product line: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2020 ​ 2021 2022 ​ ​ ​ Percentage ​ ​ Percentage ​ ​ ​ Percentage ​ ​ ​ ​ ​ of ​ ​ ​ ​ of ​ ​ ​ of ​ Amount Revenues Amount Revenues Amount Revenues ​ ​ (in thousands, except percentages) Display drivers for large-sized applications ​ $ 240,789 27.1 ​ $ 397,905 25.7 ​ $ 263,992 ​ 22.0 Display drivers for small and medium-sized applications ​ 515,733 58.1 ​ 963,537 62.3 ​ ​ 778,946 ​ 64.8 Non-driver products (1) ​ 130,760 14.8 ​ 185,655 12.0 ​ ​ 158,401 ​ 13.2 Total ​ $ 887,282 100.0 ​ $ 1,547,097 100.0 ​ $ 1,201,339 ​ 100.0 Note: (1) Includes, among other things, timing controllers, LCoS projector solutions, power management IC, CMOS image sensors, programmable gamma OP, wafer level optics (WLO) products, ultralow power WiseEye smart image sensing, NRE incomes, and ASIC service.
These market dynamics adversely affected both demand and procurement processes of panel customers, particularly in the realm of consumer electronics. 60 Table of Contents The following table sets forth, for the periods indicated, our revenues by amount and our revenues as a percentage of revenues by each product line: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2021 ​ 2022 2023 ​ ​ ​ Percentage ​ ​ Percentage ​ ​ ​ Percentage ​ ​ ​ ​ ​ of ​ ​ ​ ​ of ​ ​ ​ of ​ Amount Revenues Amount Revenues Amount Revenues ​ ​ (in thousands, except percentages) Display drivers for large-sized applications ​ $ 397,905 25.7 ​ $ 263,992 ​ 22.0 ​ $ 175,666 ​ 18.6 Display drivers for small and medium-sized applications ​ 963,537 62.3 ​ 778,946 ​ 64.8 ​ ​ 629,174 ​ 66.5 Non-driver products (1) ​ 185,655 12.0 ​ 158,401 ​ 13.2 ​ ​ 140,588 ​ 14.9 Total ​ $ 1,547,097 100.0 ​ $ 1,201,339 ​ 100.0 ​ $ 945,428 ​ 100.0 Note: (1) Includes, among other things, timing controllers, LCoS projector solutions, power management IC, CMOS image sensors, programmable gamma OP, wafer level optics (WLO) products, ultralow power WiseEye smart image sensing, NRE incomes, and ASIC service.
Customer C accounted for 12.7%, 19.1% and 9.4% of our revenues in 2020, 2021 and 2022, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2020 ​ 2021 2022 ​ ​ ​ Percentage ​ ​ Percentage ​ ​ ​ Percentage ​ ​ ​ ​ ​ of ​ ​ ​ ​ of ​ ​ ​ of ​ Amount Revenues Amount Revenues Amount Revenues ​ ​ (in thousands, except percentages) Customer A and its affiliates ​ $ 289,663 32.6 ​ $ 497,083 32.1 ​ $ 388,194 ​ 32.3 Customer C ​ 112,504 12.7 ​ 295,217 19.1 ​ ​ 113,396 ​ 9.4 Others ​ 485,115 54.7 ​ 754,797 48.8 ​ ​ 699,749 ​ 58.3 Total ​ $ 887,282 100.0 ​ $ 1,547,097 100.0 ​ $ 1,201,339 ​ 100.0 ​ 57 Table of Contents The global TFT-LCD panel market is highly concentrated, with only a limited number of TFT-LCD panel manufacturers producing large-sized TFT-LCD panels in high volumes.
Customer C accounted for 19.1%, 9.4% and 11.0% of our revenues in 2021, 2022 and 2023, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2021 ​ 2022 2023 ​ ​ ​ Percentage ​ ​ Percentage ​ ​ ​ Percentage ​ ​ ​ ​ ​ of ​ ​ ​ ​ of ​ ​ ​ of ​ Amount Revenues Amount Revenues Amount Revenues ​ ​ (in thousands, except percentages) Customer A and its affiliates ​ $ 497,083 32.1 ​ $ 388,194 ​ 32.3 ​ $ 271,351 ​ 28.7 Customer C ​ 295,217 19.1 ​ 113,396 ​ 9.4 ​ ​ 103,839 ​ 11.0 Others ​ 754,797 48.8 ​ 699,749 ​ 58.3 ​ ​ 570,238 ​ 60.3 Total ​ $ 1,547,097 100.0 ​ $ 1,201,339 ​ 100.0 ​ $ 945,428 ​ 100.0 ​ The global TFT-LCD and OLED panel market is highly concentrated, with only a limited number of TFT-LCD and OLED panel manufacturers producing TFT-LCD and OLED panels in high volumes.
We are increasingly receiving feedback and design adoptions from customers globally for various markets, such as car recorders, surveillance, smart electric meters, drones, smart home/office, medical and many other appliances. Lastly on LCoS, an area we have committed years of R&D efforts. We continue to focus on AR goggle devices and AR HUD (head-up-displays) for automotive.
We are receiving increasing feedback and seeing design adoptions from customers worldwide for a variety of markets, including surveillance, smart electric/water meters, drones, smart home/office solutions, medical devices, and various other appliances. Lastly, we have committed years of R&D efforts to LCoS product. We continue to focus on AR goggle devices and AR HUD (head-up-displays) for automotive.
We expect that our sales and marketing expenses will increase in absolute dollar amounts over the next several years. However, we believe that as we continue to achieve greater economies of scale and operating efficiencies, our sales and marketing expenses may decline over time as a percentage of our revenues.
However, we believe that as we continue to achieve greater economies of scale and operating efficiencies, our sales and marketing expenses may decline over time as a percentage of our revenues.
We made grants annual bonus by cash payouts totaling $47.7 million and $19.3 million to the Company’s employees among which $1.6 million and $1.0 million was immediately vested on September 28, 2021 and September 28, 2022, respectively. The remainder will be equally vested at the first, second and third anniversaries of the grant date.
We made grants annual bonus by cash payouts totaling $47.7 million, $19.3 million and $0.7 million to the Company’s employees among which $1.6 million, $1.0 million and $0.2 million was immediately vested on September 28, 2021, September 28, 2022 and September 26, 2023, respectively.
Investing Activities . Net cash provided by investing activities in 2022 was $15.0 million compared to net cash used in investing activities of $232.7 million in 2021.
Net cash used in investing activities in 2023 was $88.9 million compared to net cash provided by investing activities $15.0 million in 2022.
The average selling prices of TFT-LCD panels could decline for numerous reasons, which could in turn result in downward pricing pressure on our products. See “Item 3.D. Key Information—Risk Factors—Risks Relating to Our Financial Condition and Business—We derive the majority of our net revenues from sales to the TFT-LCD panel industry, which is highly cyclical and subject to price fluctuations.
See “Item 3.D. Key Information—Risk Factors—Risks Relating to Our Financial Condition and Business—We derive the majority of our net revenues from sales to the TFT-LCD and OLED panel industry, which is highly cyclical and subject to price fluctuations.
Based on the amendments to the above, effective from January 1, 2016 to December 31, 2019, further extended to December 31, 2029, if companies choose to extend the tax credits to three years, the tax credit rate will be 10% of the total qualifying research and development expenditure for the current year and subject to a cap of 30% of the income tax payable for each year. 56 Table of Contents Description of Certain Statements of Profit or Loss Line Items Revenues Historically, we generated majority of revenues from sales of display drivers for large-sized applications and small and medium-sized applications.
Based on the amendments to the above, effective from January 1, 2016 to December 31, 2019, further extended to December 31, 2029, if companies choose to extend the tax credits to three years, the tax credit rate will be 10% of the total qualifying research and development expenditure for the current year and subject to a cap of 30% of the income tax payable for each year.
We foresee AMOLED driver IC soon becoming one of the major growth drivers for our small and medium-sized panel driver IC business. Non-Driver IC Segment The non-driver category has been our most exciting growth area and a differentiator for the Company.
We anticipate that AMOLED driver ICs will soon become one of the major growth drivers for our business. Non-Driver IC Sector The non-driver category has been our most exciting growth area and a differentiator for the Company.
Income Taxes According to the ROC Income Tax Act, dividends distributed by a Taiwan company to its foreign shareholders are subject to ROC withholding tax, currently at the rate of 21% on the amount of the distribution in the case of cash dividends or on the par value of the ordinary shares in the case of stock dividends.
For the years ended December 31, 2021, 2022 and 2023, we did not recognize any impairment loss on goodwill. 63 Table of Contents Income Taxes According to the ROC Income Tax Act, dividends distributed by a Taiwan company to its foreign shareholders are subject to ROC withholding tax, currently at the rate of 21% on the amount of the distribution in the case of cash dividends or on the par value of the ordinary shares in the case of stock dividends.
In addition, we commenced mass production of AMOLED TCON together with DDIC in automotive and tablet applications starting in early 2022 where the design-wins with leading tablet and NEV customers continue to expand. We believe the Tcon segment will be one of the driving forces for our non-driver business moving forward.
Additionally, we commenced mass production of AMOLED TCON together with DDIC in automotive and tablet applications starting in early 2022, where the design wins with leading tablet and NEV customers continue to expand.
Our exceptional optical design knowledge, together with our production proven nanoimprinting capabilities and mass manufacturing experience, allow us to deliver high-quality solutions to meet the requirements of the future generation optical applications across automotive, consumer, industrial, medical applications, AR/VR/ MR devices and many other applications.
Our exceptional optical design knowledge, together with our production proven nanoimprinting capabilities and mass manufacturing experience, allow us to deliver high-quality solutions to meet the requirements of the future generation optical applications across automotive, consumer, industrial, medical applications, AR/VR/ MR devices and many other applications. 71 Table of Contents Regarding ultralow power WiseEye smart image sensing, the demand for resource-constrained and battery-powered end point applications with AI intelligent sensing is rapidly growing.
We recognized share-based compensation expenses regarding stock options under the long-term incentive plan totaling $0.7 million in 2020. Cash Awards. We made grants annual bonus by cash payouts totaling $47.7 million and $19.3 million to the Company’s employees among which $1.6 million and $1.0 million was immediately vested on September 28, 2021 and September 28, 2022, respectively.
We made grants annual bonus by cash payouts totaling $47.7 million, $19.3 million and $0.7 million to the Company’s employees among which $1.6 million, $1.0 million and $0.2 million was immediately vested on September 28, 2021, September 28, 2022 and September 26, 2023, respectively.
Non-Driver Products Segment Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 Segment revenues. Our revenues from the Non-Driver Products segment decreased by 14.7% to $158.4 million in 2022 from $185.7 million in 2021. The year-over-year decrease was mainly from decline in Tcon revenues, CMOS imaging sensor business as well as WLO.
Non-Driver Products Segment Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Segment revenues. Our revenues from the Non-Driver Products segment decreased by 11.2% to $140.6 million in 2023 from $158.4 million in 2022. The year-over-year decrease was mainly from decline in TCON revenues, but partially offset by the increase of WLO and CMOS imaging sensor.
We believe that substantially all of our revenues will continue to be from customers located in Asia, where almost all of the TFT-LCD panel manufacturers and mobile device module manufacturers are located.
We believe that substantially all of our revenues will continue to be from customers located in Asia, where almost all of the panel manufacturers and mobile device module manufacturers are located. As a result of the regional customer concentration, we expect to continue to be subject to economic and political events and other developments that affect our customers in Asia.
Therefore, we strive to work closely with current and prospective customers in order to anticipate their requirements and product roadmaps and achieve additional design wins. 54 Table of Contents Cost of Revenues and Cost Reductions We strive to control our cost of revenues.
Therefore, we strive to work closely with current and prospective customers in order to anticipate their requirements and product roadmaps and achieve additional design wins. Cost of Revenues and Cost Reductions We strive to control our cost of revenues. Our cost of revenues as a percentage of total revenues in 2021, 2022 and 2023 was 51.6%, 59.5% and 72.1%, respectively.
Operating income from the Driver IC segment decreased to $275.3 million in 2022 from $551.9 million in 2021. This decrease was primarily attributable to a decrease in revenues and lower gross margin, which was mainly attributable to pricing pressure resulting from excess inventory levels following the sudden halt in consumer demand.
Operating income from the Driver IC segment decreased to $75.3 million in 2023 from $275.3 million in 2022. This decrease was primarily attributable to a decrease in revenues and lower gross margin, which was mainly attributable to pricing pressure, largely stemming from pricing pressure caused by the need to offload excess inventory levels amid challenging economic conditions.
Regarding ultralow power WiseEye smart image sensing, the demand for resource-constrained and battery-powered end point applications with AI intelligent sensing is rapidly growing. Our WiseEye AI solution is designed for a wide range of ultralow power use cases that aim to modernize legacy end-point devices, which lack AI capability, with ultralow power computer vision AI.
Our WiseEye AI solution is designed for a wide range of ultralow power use cases that aim to modernize legacy endpoint devices, which lack AI capability, with ultralow power computer vision AI.
This increase in net cash provided by investing activities was due primarily to a decrease of $206.9 million in refundable deposits made for securing foundry capacity, an increase of $34.4 million in net cash provided by disposal of financial assets at amortized cost in 2022 compared to 2021 and an increase in cash provided by disposal of subsidiary of $14.8 million.
This increase in net cash used in investing activities was due primarily to an increase of $50.8 million in refundable deposits made for securing foundry capacity, an increase of $20.9 million in net cash used in acquisitions of financial assets at amortized cost in 2023 compared to 2022 and an increase in cash used in acquisitions of property, plant and equipment of $11.6 million.
Average Selling Prices Our performance is affected by the selling prices of each of our products. We price our products based on several factors, including manufacturing costs, life cycle stage of the product, competition, technical complexity of the product, size of the purchase order and our relationship with the customer.
We price our products based on several factors, including manufacturing costs, life cycle stage of the product, competition, technical complexity of the product, size of the purchase order and our relationship with the customer. We typically are able to charge the highest price for a product when it is first introduced.
Income Taxes Since we and our direct and indirect subsidiaries are incorporated in different jurisdictions, we file separate income tax returns. Under the current laws of the Cayman Islands, we are not subject to income or capital gains tax. Additionally, dividend payments made by us are not subject to withholding tax in the Cayman Islands.
The remainder will be equally vested at the first, second and third anniversaries of the grant date. 62 Table of Contents Income Taxes Since we and our direct and indirect subsidiaries are incorporated in different jurisdictions, we file separate income tax returns. Under the current laws of the Cayman Islands, we are not subject to income or capital gains tax.
We anticipate that our general and administrative expenses will increase in absolute dollar amounts as we expand our operations, hire additional administrative personnel, incur depreciation expenses in connection with the increase in office equipment and Fab 2, and incur additional compliance costs required of a publicly listed company in the United States. 58 Table of Contents Sales and Marketing Expenses Our sales and marketing expenses consist primarily of salaries of sales and marketing employees, including related employee welfare costs, travel expenses and product sample costs.
We anticipate that our general and administrative expenses will increase in absolute dollar amounts as we expand our operations, hire additional administrative personnel and incur additional compliance costs required of a publicly listed company in the United States.
General and administrative expenses decreased by 2.7% to $28.5 million in 2022 from $29.3 million in 2021, primarily as a result of decreases in professional fees but partially offset by increases in RSU compensation and cash awards. ● Sales and Marketing. Sales and marketing expenses increased by 10.3% to $25.5 million in 2022 from $23.1 million in 2021.
General and administrative expenses decreased by 12.2% to $25.0 million in 2023 from $28.5 million in 2022, primarily as a result of decreases in compensation awards to employees described in above Research and Development and professional fees. ● Sales and Marketing. Sales and marketing expenses decreased by 6.3% to $23.9 million in 2023 from $25.5 million in 2022.
Segment Results The following table sets forth the revenues and operating results for our reportable segments for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2020 2021 2022 ​ ​ (in thousands) Segment Revenues ​ ​ ​ ​ ​ Driver IC ​ $ 756,522 ​ $ 1,361,442 ​ $ 1,042,938 Non-Driver Products ​ 130,760 ​ 185,655 ​ ​ 158,401 Total ​ $ 887,282 ​ $ 1,547,097 ​ $ 1,201,339 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2020 2021 2022 ​ ​ (in thousands) Segment Operating Income (Loss) ​ ​ ​ ​ ​ Driver IC ​ $ 98,687 ​ $ 551,943 ​ $ 275,275 Non-Driver Products ​ ​ (40,761) ​ ​ (6,922) ​ ​ (17,688) Total ​ $ 57,926 ​ $ 545,021 ​ $ 257,587 ​ Driver IC Segment Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 Segment revenues .
As a result of the foregoing, our profit was $49.4 million in 2023, versus $235.5 million in 2022, and profit attributable to Himax stockholders was $50.6 million in 2023, versus $237.0 million in 2022. 66 Table of Contents Segment Results The following table sets forth the revenues and operating results for our reportable segments for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2021 2022 2023 ​ ​ (in thousands) Segment Revenues ​ ​ ​ ​ ​ Driver IC ​ $ 1,361,442 ​ $ 1,042,938 ​ $ 804,840 Non-Driver Products ​ 185,655 ​ ​ 158,401 ​ ​ 140,588 Total ​ $ 1,547,097 ​ $ 1,201,339 ​ $ 945,428 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2021 2022 2023 ​ ​ (in thousands) Segment Operating Income (Loss) ​ ​ ​ ​ ​ Driver IC ​ $ 551,943 ​ $ 275,275 ​ $ 75,282 Non-Driver Products ​ ​ (6,922) ​ ​ (17,688) ​ ​ (32,070) Total ​ $ 545,021 ​ $ 257,587 ​ $ 43,212 ​ Driver IC Segment Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Segment revenues .
We may also be subject to contractual penalties if we are unable to purchase the committed volume from our foundry partners. In addition, since these strategic agreements with our foundry partners typically require us to make prepayments or refundable deposits to such foundry partners, our cash flow, liquidity and financial condition could be adversely affected.
In addition, since these strategic agreements with our foundry partners typically require us to make prepayments or refundable deposits to such foundry partners, our cash flow, liquidity and financial condition could be adversely affected. We have entered into several wafer fabrication or assembly and testing service arrangements or multi-year purchase agreements with suppliers.
As of December 31, 2021 and 2022, goodwill in Driver IC CGU and WLO CGU was $26,846 thousand and $1,292 thousand, respectively. For the years ended December 31, 2020, 2021 and 2022, we did not recognize any impairment loss on goodwill.
As of December 31, 2022 and 2023, goodwill in Driver IC CGU and WLO CGU was $26,846 thousand and $1,292 thousand, respectively.
We made grants of 580,235 RSUs to our employees on September 29, 2017.
We made grants of 676,273 RSUs to our employees on September 26, 2018.
Our cost of revenues as a percentage of total revenues in 2020, 2021 and 2022 was 75.1%, 51.6% and 59.5%, respectively. In 2022, as a percentage of Himax Taiwan’s total manufacturing costs, the cost of wafer fabrication was 63.0%, the cost of processed tape was 5.9%, the cost of assembly and testing was 30.3%, and overhead was 0.8%.
In 2023, as a percentage of Himax Taiwan’s total manufacturing costs, the cost of wafer fabrication was 50.5%, the cost of processed tape was 4.5%, the cost of assembly and testing was 44.3%, and overhead was 0.7%.
The WLO technology continues to play an important role in shaping next generation optical applications. As an illustration, our WLO technology can be deployed to empower 3D perception sensing for precise controller-free gesture recognition in VR devices. We expect volume production starting middle of 2023.
As an illustration, our WLO technology can be deployed to empower 3D perception sensing for precise controller-free gesture recognition in VR devices and commenced volume production of WLO technology to a leading North American customer starting in second quarter of 2023 for their new generation VR devices to enable 3D gesture control.
We sell large-sized panel display drivers to many of these TFT-LCD panel manufacturers. Our revenues, therefore, will depend on our ability to capture an increasingly larger percentage of each panel manufacturer’s display driver requirements.
We sell panel display drivers to many of these panel manufacturers. Our revenues, therefore, will depend on our ability to capture an increasingly larger percentage of each panel manufacturer’s display driver requirements. The sales to panel makers in China have become a significant portion of our revenue due to the Chinese panel maker business expansion which started in 2011.
WiseEye business is in a good position to enjoy rapid growth for years to come and will become one of our major growth drivers for our non-driver segment starting in 2023. On 3D sensing, we provide both total solution and key component for customers.
WiseEye business is in a good position to enjoy rapid growth for years to come and we believe it will serve as a multi-year structural growth driver for Himax. On 3D sensing, we offer both total solutions and key components for our customers.
The vesting schedule for such RSU grants is as follows: 96.91% of the RSU grants vested immediately and were settled by cash in the amount of $6.1 million on the grant date, with the remainder vesting equally on each of September 30, 2018, 2019 and 2020, which will be settled by our ordinary shares, subject to certain forfeiture events. 55 Table of Contents We made grants of 676,273 RSUs to our employees on September 26, 2018.
The vesting schedule for such RSU grants is as follows: 97.45% of the RSU grants vested immediately and were settled by cash in the amount of $9.5 million on the grant date, with the remainder vesting equally on each of September 30, 2024, 2025 and 2026, which will be settled by our ordinary shares, subject to certain forfeiture events. 59 Table of Contents The amount of share-based compensation expense with regard to the RSUs granted to our employees on September 26, 2018, September 28, 2020, September 28, 2021, September 28, 2022 and September 26, 2023 was $5.76 per ADS, $3.44 per ADS, $10.39 per ADS, $5.09 per ADS and $5.68 per ADS, respectively, which was based on the trading price of our ADSs on that day.
We are devoted to the development, manufacturing and marketing of non-driver products to diversify our customer base and product portfolio to offer total solutions of timing controller, image processing and human interface related technologies in addition to our driver IC products. 67 Table of Contents On timing controller, we are optimistic about the long-term growth prospect of the Tcon business where we have successfully positioned ourselves for higher end and higher value-added areas including 4K/8K TV, gaming TV and monitor, low power notebook in view of consumers’ pursuance of various new types of entertainment for film, television and gaming as well as automotive, particularly with local dimming feature.
In the timing controller sector, we are optimistic about the growth prospects, where we have successfully positioned ourselves for higher-end and higher value-added areas, including 4K/8K TV, gaming TV and monitors, low-power notebooks, in view of consumers’ pursuit of various new types of entertainment for film, television, and gaming, as well as automotive applications, particularly with the local dimming feature.
This increase was primarily attributable to increase in RSU compensation and cash awards. 62 Table of Contents Non-Operating Income (loss). We had net non-operating income of $19.0 million in 2022 compared to net non-operating loss of $0.4 million in 2021.
This decrease was primarily attributable to decrease in compensation awards to employees described in above Research and Development , but partially offset by increase in travelling expense. Non-Operating Income (loss). We had net non-operating income of $1.2 million in 2023 compared to $19.0 million in 2022.
The majority of our revenues in 2022 were derived from sales of display drivers that were eventually incorporated into TFT-LCD panels. We expect display drivers for TFT-LCD panels to continue to be our primary products. The TFT-LCD panel industry is intensely competitive and is vulnerable to cyclical market conditions.
We expect display drivers for TFT-LCD and OLED panels to continue to be our primary products. The TFT-LCD and OLED panel industry is intensely competitive and is vulnerable to cyclical market conditions. The average selling prices of TFT-LCD and OLED panels could decline for numerous reasons, which could in turn result in downward pricing pressure on our products.
In 2020, 2021 and 2022, approximately 13.9%, 14.2% and 14.6% of our revenues, respectively, were from customers headquartered in Taiwan and approximately 79.7%, 81.5% and 77.0% of our revenues, respectively, were from customers headquartered in China.
We derive substantially all of our revenues from sales to Asia-based customers whose end products are sold worldwide. In 2021, 2022 and 2023, approximately 14.2%, 14.6% and 15.0% of our revenues, respectively, were from customers headquartered in Taiwan and approximately 81.5%, 77.0% and 76.2% of our revenues, respectively, were from customers headquartered in China.
To fund such dividends and repurchases, in the past years, we have received cash from bank loans and from Himax Taiwan through intercompany borrowings instead of dividends distributed by Himax Taiwan. 60 Table of Contents As part of the process of preparing our consolidated financial statements, our management is required to estimate income taxes and tax bases of assets and liabilities for us and our subsidiaries.
As part of the process of preparing our consolidated financial statements, our management is required to estimate income taxes and tax bases of assets and liabilities for us and our subsidiaries.
Our effective income tax rate decreased to 14.9% from 20.3% in 2021. The decrease in our effective income tax rate was primarily attributable to the higher tax benefit rate in tax credits and tax saving from disposal of subsidiary. Profit for the year.
Our effective income tax rate decreased to (11.3%) in 2023 from 14.9% in 2022. The decrease in our effective income tax rate was primarily attributable to the significant decrease in pre-tax profit, from $276.6 million in 2022 to $44.4 million in 2023 and income tax benefit for tax credit decreased to $9.9 million in 2023 from $15.6 million in 2022.
It also gives us the flexibility to use the technology and service providers that are the most suitable for any given product.
It also gives us the flexibility to use the technology and service providers that are the most suitable for any given product. For LCoS microdisplay and wafer level optics products, our in-house factories enable us to protect our proprietary technologies and manufacturing expertise in the effort to further expand these businesses.
Costs and expenses decreased by 5.8% to $943.8 million in 2022 from $1,002.1 million in 2021. As a percentage of revenues, costs and expenses increased to 78.6% in 2022 compared to 64.8% in 2021. ● Cost of Revenues.
As a percentage of revenues, costs and expenses increased to 95.4% in 2023 compared to 78.6% in 2022. ● Cost of Revenues. Cost of revenues decreased to $681.9 million in 2023 from $714.2 million in 2022, which was due primarily to a 3.1% decrease in unit shipments in 2023.
In 2020, 2021 and 2022, we incurred research and development expenses of $122.3 million, $151.4 million and $175.6 million, respectively, representing 13.8%, 9.8% and 14.6% of our revenues, respectively. 5.D. Trend Information Unexpected lockdowns in China, geopolitical tensions and macroeconomic related factors all created a challenging operating environment and impaired our business performance during 2022.
In 2021, 2022 and 2023, we incurred research and development expenses of $151.4 million, $175.6 million and $171.4 million, respectively, representing 9.8%, 14.6% and 18.1% of our revenues, respectively. 5.D.
We are a holding company located in the Cayman Islands and have paid dividends and repurchased outstanding shares.
We are a holding company located in the Cayman Islands and have paid dividends and repurchased outstanding shares. To fund such dividends and repurchases, in the past years, we have received cash from bank loans and from Himax Taiwan through intercompany borrowings instead of dividends distributed by Himax Taiwan.

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeCompensation For the year ended December 31, 2022, the aggregate cash compensation that we paid to our executive officers was approximately $1.7 million. The aggregate share-based compensation that we paid to our executive officers was approximately $0.4 million. No executive officer is entitled to any severance benefits upon termination of his or her employment with us.
Biggest changeNo executive officer is entitled to any severance benefits upon termination of his or her employment with us. 75 Table of Contents For the year ended December 31, 2023, the aggregate cash compensation that we paid to our independent directors was approximately $150,000. The aggregate share-based compensation that we paid to our independent directors was nil.
Our nominating and corporate governance committee will be responsible for, among other things: ● identifying and recommending to our board of directors nominees for election or re-election, or for appointment to fill any vacancy; ● reviewing annually with our board of directors the current composition of our board of directors in light of the characteristics of independence, age, skills, experience and availability of service to us; ● reviewing the continued board membership of a director upon a significant change in such director’s principal occupation; ● identifying and recommending to our board of directors the names of directors to serve as members of the audit committee and the compensation committee, as well as the nominating and corporate governance committee itself; ● advising the board periodically with respect to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to our board of directors on all matters of corporate governance and on any corrective action to be taken; and ● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance. 74 Table of Contents Terms of Directors and Officers Under Cayman Islands law and our articles of association, each of our directors holds office until a successor has been duly elected or appointed, except where any director was appointed by the board of directors to fill a vacancy on the board of directors or as an addition to the existing board, such director shall hold office until the next annual general meeting of shareholders at which time such director is eligible for re-election.
Our nominating and corporate governance committee will be responsible for, among other things: ● identifying and recommending to our board of directors nominees for election or re-election, or for appointment to fill any vacancy; ● reviewing annually with our board of directors the current composition of our board of directors in light of the characteristics of independence, age, skills, experience and availability of service to us; ● reviewing the continued board membership of a director upon a significant change in such director’s principal occupation; ● identifying and recommending to our board of directors the names of directors to serve as members of the audit committee and the compensation committee, as well as the nominating and corporate governance committee itself; ● advising the board periodically with respect to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to our board of directors on all matters of corporate governance and on any corrective action to be taken; and ● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance. 77 Table of Contents Terms of Directors and Officers Under Cayman Islands law and our articles of association, each of our directors holds office until a successor has been duly elected or appointed, except where any director was appointed by the board of directors to fill a vacancy on the board of directors or as an addition to the existing board, such director shall hold office until the next annual general meeting of shareholders at which time such director is eligible for re-election.
The table below provides certain information regarding the diversity of our board of directors as of the date of this annual report. ​ ​ ​ ​ ​ ​ ​ ​ ​ Board Diversity Matrix (As of March 31, 2023) Country of Principal Executive Offices TAIWAN, REPUBLIC OF CHINA Foreign Private Issuer Yes Disclosure Prohibited Under Home Country Law No Total Number of Directors 5 ​ ​ Female ​ Male ​ Non-Binary ​ Did Not Disclose ​ ​ ​ ​ ​ ​ ​ ​ Gender Part I: Gender Identity ​ Directors — 5 — — Part II: Demographic Background Underrepresented Individual in Home Country Jurisdiction — LGBTQ+ — Did Not Disclose Demographic Background — ​ 6.B.
The table below provides certain information regarding the diversity of our board of directors as of the date of this annual report. ​ ​ ​ ​ ​ ​ ​ ​ ​ Board Diversity Matrix (As of March 31, 2024) Country of Principal Executive Offices TAIWAN, REPUBLIC OF CHINA Foreign Private Issuer Yes Disclosure Prohibited Under Home Country Law No Total Number of Directors 5 ​ ​ Female ​ Male ​ Non-Binary ​ Did Not Disclose ​ ​ ​ ​ ​ ​ ​ ​ Gender Part I: Gender Identity ​ Directors — 5 — — Part II: Demographic Background Underrepresented Individual in Home Country Jurisdiction — LGBTQ+ — Did Not Disclose Demographic Background — ​ 6.B.
The audit committee will be responsible for, among other things: ● selecting the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors; ● reviewing with the independent auditors any audit problems or difficulties and management’s response; ● reviewing and approving all proposed related party transactions, as defined in Item 404 of Regulation SK under the Securities Act; ● discussing the annual audited financial statements with management and the independent auditors; ● reviewing major issues as to the adequacy of our internal controls and any special audit steps adopted in light of significant deficiencies or material weaknesses in internal controls; ● annually reviewing and reassessing the adequacy of our audit committee charter; ● meeting separately and periodically with management and the independent auditors; ● reporting regularly to the board of directors; and ● such other matters that are specifically delegated to our audit committee by our board of directors from time to time.
The audit committee will be responsible for, among other things: ● selecting the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors; ● reviewing with the independent auditors any audit problems or difficulties and management’s response; ● reviewing and approving all proposed related party transactions, as defined in Item 404 of Regulation SK under the Securities Act; ● discussing the annual audited financial statements with management and the independent auditors; ● reviewing major issues as to the adequacy of our internal controls and any special audit steps adopted in light of significant deficiencies or material weaknesses in internal controls; 76 Table of Contents ● annually reviewing and reassessing the adequacy of our audit committee charter; ● meeting separately and periodically with management and the independent auditors; ● reporting regularly to the board of directors; and ● such other matters that are specifically delegated to our audit committee by our board of directors from time to time.
The options granted in 2020 were fully vested on October 1, 2020. 76 Table of Contents Restricted Share Units. The committee may grant restricted share units to participants. Each grant will be evidenced by an award document that will specify the period(s) of restriction, the number of restricted share units granted and such other provisions as the committee determines.
The options granted in 2020 were fully vested on October 1, 2020. 79 Table of Contents Restricted Share Units. The committee may grant restricted share units to participants. Each grant will be evidenced by an award document that will specify the period(s) of restriction, the number of restricted share units granted and such other provisions as the committee determines.
Share Ownership The following table sets forth the beneficial ownership of our ordinary shares, as of March 31, 2023, by each of our directors and executive officers. Beneficial ownership is determined in accordance with the rules and regulations of the SEC. ​ ​ ​ ​ ​ ​ ​ ​ Number of Shares Percentage of Shares Name Owned Owned ​ Dr.
Share Ownership The following table sets forth the beneficial ownership of our ordinary shares, as of March 31, 2024, by each of our directors and executive officers. Beneficial ownership is determined in accordance with the rules and regulations of the SEC. ​ ​ ​ ​ ​ ​ ​ ​ Number of Shares Percentage of Shares Name Owned Owned ​ Dr.
Our chief executive officer may not be present at 73 Table of Contents any committee meeting where his or her compensation is deliberated. We intend to follow Rule 5605(d)(1)(B) and (2)(B) of the Nasdaq Rules which requires the compensation committees of U.S. companies to be comprised solely of independent directors.
Our chief executive officer may not be present at any committee meeting where his or her compensation is deliberated. We intend to follow Rule 5605(d)(1)(B) and (2)(B) of the Nasdaq Rules which requires the compensation committees of U.S. companies to be comprised solely of independent directors.
Biing-Seng Wu, who are brothers, there are no family relationships between any of our directors and executive officers. The following table sets forth information regarding our directors and executive officers as of March 31, 2023.
Biing-Seng Wu, who are brothers, there are no family relationships between any of our directors and executive officers. The following table sets forth information regarding our directors and executive officers as of March 31, 2024.
Generally, awards cannot be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. 77 Table of Contents Adjustments in Authorized Shares.
Generally, awards cannot be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. 80 Table of Contents Adjustments in Authorized Shares.
Dr. Su holds a B.S. degree and an M.S. degree and a Ph.D. degree in Electrical Engineering from National Cheng Kung University. 70 Table of Contents Yuan-Chuan Horng is our director. Prior to our reorganization in October 2005, Mr. Horng served as a director of Himax Taiwan from August 2004 to October 2005. Mr.
Dr. Su holds a B.S. degree and an M.S. degree and a Ph.D. degree in Electrical Engineering from National Cheng Kung University. Yuan-Chuan Horng is our director. Prior to our reorganization in October 2005, Mr. Horng served as a director of Himax Taiwan from August 2004 to October 2005. Mr.
Type of Awards. The plan provides for the grant of stock options and restricted share units. 75 Table of Contents Duration. Generally, the plan will terminate five years from the effective date of the plan.
Type of Awards. The plan provides for the grant of stock options and restricted share units. 78 Table of Contents Duration. Generally, the plan will terminate five years from the effective date of the plan.
Unless otherwise indicated, the positions or titles indicated in the table below refer to Himax Technologies, Inc. ​ ​ ​ Directors and Executive Officers Age Position/Title Dr. Biing-Seng Wu ​ 65 ​ Chairman of the Board Jordan Wu ​ 62 ​ President, Chief Executive Officer and Director Dr.
Unless otherwise indicated, the positions or titles indicated in the table below refer to Himax Technologies, Inc. ​ ​ ​ Directors and Executive Officers Age Position/Title Dr. Biing-Seng Wu ​ 66 ​ Chairman of the Board Jordan Wu ​ 63 ​ President, Chief Executive Officer and Director Dr.
Liang-Gee Chen ​ — — ​ Jessica Pan ​ 82,366 * ​ Hsien Chang Tsai ​ — ​ — ​ Eric Li ​ 15,000 * ​ * The sum of the number of ordinary shares held is less than 1.0% of our total outstanding shares.
Liang-Gee Chen ​ — ​ — ​ Jessica Pan ​ 95,738 ​ * ​ Hsien Chang Tsai ​ — ​ — ​ Eric Li ​ 15,000 ​ * ​ * The sum of the number of ordinary shares held is less than 1.0% of our total outstanding shares.
Biing-Seng Wu ​ 76,904,468 22.0 % Jordan Wu ​ 7,399,077 2.1 % Dr. Yan-Kuin Su ​ — — ​ Yuan-Chuan Horng ​ 916,104 * ​ Dr.
Biing-Seng Wu ​ 76,904,468 ​ 22.0 % Jordan Wu ​ 7,464,247 ​ 2.1 % Dr. Yan-Kuin Su ​ — ​ — ​ Yuan-Chuan Horng ​ 916,104 ​ * ​ Dr.
A participant will have no voting rights with respect to any restricted share units. Each award document will set forth the extent to which the participant will have the right to retain restricted share units following termination of his or her employment or services. We made grants of 580,235 RSUs to our employees on September 29, 2017.
A participant will have no voting rights with respect to any restricted share units. Each award document will set forth the extent to which the participant will have the right to retain restricted share units following termination of his or her employment or services. We made grants of 676,273 RSUs to our employees on September 26, 2018.
Employees As of December 31, 2020, 2021 and 2022, we had 2,056, 2,083 and 2,181 employees, respectively.
Employees As of December 31, 2021, 2022 and 2023, we had 2,083, 2,181 and 2,164 employees, respectively.
Tsai holds a B.S. degree and M.S. degree in Electrical Engineering from National Taiwan University and an executive M.B.A. degree from National Taiwan University. Eric Li is our chief IR/PR officer and Spokesperson. Joining Himax in 2012, Mr.
Tsai served in the process integration and customer service department of TSMC. Mr. Tsai holds a B.S. degree and M.S. degree in Electrical Engineering from National Taiwan University and an executive M.B.A. degree from National Taiwan University. Eric Li is our chief IR/PR officer and Spokesperson. Joining Himax in 2012, Mr.
The following is a breakdown of our employees by function as of December 31, 2022: ​ ​ ​ Function Number Research and development (1) ​ 1,453 Engineering and manufacturing (2) ​ 285 Sales and marketing (3) ​ 309 General and administrative ​ 134 Total ​ 2,181 Notes: (1) Includes semiconductor design engineers, application engineers, assembly and testing engineers and quality control engineers.
The following is a breakdown of our employees by function as of December 31, 2023: ​ ​ ​ Function Number Research and development (1) ​ 1,451 Engineering and manufacturing (2) ​ 258 Sales and marketing (3) ​ 318 General and administrative ​ 137 Total ​ 2,164 Notes: (1) Includes semiconductor design engineers, application engineers, assembly and testing engineers and quality control engineers.
The vesting schedule for such RSU grants is as follows: 96.91% of the RSU grants vested immediately and were settled by cash in the amount of $6.1 million on the grant date, with the remainder vesting equally on each of September 30, 2018, 2019 and 2020, which will be settled by our ordinary shares, subject to certain forfeiture events.
The vesting schedule for such RSU grants is as follows: 97.45% of the RSU grants vested immediately and were settled by cash in the amount of $9.5 million on the grant date, with the remainder vesting equally on each of September 30, 2024, 2025 and 2026, which will be settled by our ordinary shares, subject to certain forfeiture events.
Yan-Kuin Su ​ 74 ​ Director Yuan-Chuan Horng ​ 71 ​ Director Dr. Liang-Gee Chen ​ 66 ​ Director Jessica Pan ​ 53 ​ Chief Financial Officer Hsien Chang Tsai ​ 52 ​ Vice President, Sales and Operations Eric Li ​ 59 ​ Chief IR/PR Officer and Spokesperson ​ Directors Dr.
Yan-Kuin Su ​ 75 ​ Director Yuan-Chuan Horng ​ 72 ​ Director Dr. Liang-Gee Chen ​ 67 ​ Director Jessica Pan ​ 54 ​ Chief Financial Officer Hsien Chang Tsai ​ 53 ​ Vice President, Sales and Operations Eric Li ​ 60 ​ Chief IR/PR Officer and Spokesperson ​ 73 Table of Contents Directors Dr.
We made grants of 676,273 RSUs to our employees on September 26, 2018.
We made grants of 1,710,607 RSUs to our employees on September 26, 2023.
Prior to joining Himax, Jessica worked as Assistant Finance Manager for Advanced Semiconductor Engineering, Inc. from 2002 to 2006 and as Auditor at Arthur Andersen LLP in Taiwan from 1998 to 2001. She holds a B.S. degree in Agriculture Chemistry from National Taiwan University and an M.B.A. degree from the State University of New York at Buffalo.
Prior to joining Himax, Jessica worked as Assistant Finance Manager for Advanced Semiconductor Engineering, Inc. from 2002 to 2006 and as Auditor at Arthur Andersen LLP in Taiwan from 1998 to 2001.
Hsien Chang Tsai is our vice president in charge of Sales and Operations. Mr. Tsai joined Himax in 2002 as Director of Himax Operation Division initially before serving as Vice President of Himax Display, Inc. where he successfully led the acquisition of Spatial Photonics, Inc.
Tsai joined Himax in 2002 as Director of Himax Operation Division initially before serving as Vice President of Himax Display, Inc. where he successfully led the acquisition of Spatial Photonics, Inc. Most recently, he concurrently served as Vice President of Himax Imaging, Ltd. and Vice President of Intelligent Sensing AI Product Center of Himax. Prior to Himax, Mr.
He holds a B.S. degree in Nuclear Engineering from National Tsing Hua University and an M.S. degree in Computer and Information Science from New Jersey Institute of Technology. 71 Table of Contents Board Diversity On August 6, 2021, the SEC approved the Nasdaq Stock Market’s proposal to amend its listing standards to encourage greater board diversity and to require board diversity disclosures for Nasdaq-listed companies.
Board Diversity On August 6, 2021, the SEC approved the Nasdaq Stock Market’s proposal to amend its listing standards to encourage greater board diversity and to require board diversity disclosures for Nasdaq-listed companies.
For the year ended December 31, 2022, the aggregate cash compensation that we paid to our independent directors was approximately $150,000. The aggregate share-based compensation that we paid to our independent directors was nil. The following table summarizes the RSUs and cash award that we granted in 2022 to our directors and executive officers under our 2011 long-term incentive plan.
Compensation For the year ended December 31, 2023, the aggregate cash compensation that we paid to our executive officers was approximately $1.8 million. The aggregate share-based compensation that we paid to our executive officers was approximately $0.2 million.
Removed
Most recently, he concurrently served as Vice President of Himax Imaging, Ltd. and Vice President of Intelligent Sensing AI Product Center of Himax. Prior to Himax, Mr. Tsai served in the process integration and customer service department of TSMC. Mr.
Added
She holds a B.S. degree in Agriculture Chemistry from National Taiwan University and an M.B.A. degree from the State University of New York at Buffalo. 74 Table of Contents Hsien Chang Tsai is our vice president in charge of Sales and Operations. Mr.
Removed
Each unit of RSU represents two ordinary shares. See “Item 6.D.
Added
He holds a B.S. degree in Nuclear Engineering from National Tsing Hua University and an M.S. degree in Computer and Information Science from New Jersey Institute of Technology.
Removed
Biing-Seng Wu ​ 22,550 ​ 344 ​ 45,100 ​ — ​ 344 Jordan Wu ​ 94,947 ​ — ​ 47,474 ​ 142,420 ​ — Dr.
Added
In 2023, our Chairman of the Board voluntarily abandon the number of RSUs to be granted proposed by the compensation committee and then compensate other employees. The goal is to provide competitive compensation to our employees.
Removed
Yan-Kuin Su ​ — ​ — ​ — ​ — ​ — Yuan-Chuan Horng ​ — ​ — ​ — ​ — ​ — Hsiung-Ku Chen (1) ​ — ​ — ​ — ​ — ​ — Dr.
Added
The following table summarizes the RSUs and cash award that we granted in 2023 to our directors and executive officers under our 2011 long-term incentive plan. Each unit of RSU represents two ordinary shares. See “Item 6.D.
Removed
Liang-Gee Chen (2) ​ — ​ — ​ — ​ — ​ — Jessica Pan ​ 24,233 ​ — ​ 12,116 ​ 36,350 ​ — Norman Hung (3) ​ 12,466 ​ — ​ 6,234 ​ 18,698 ​ — 72 Table of Contents Hsien Chang Tsai (4) ​ 9,255 ​ 141 ​ 18,510 ​ — ​ 141 Eric Li ​ 5,814 ​ 89 ​ 11,628 ​ — ​ 89 (1) Hsiung-Ku Chen resigned as our independent director, with effect from August 16, 2022.
Added
Biing-Seng Wu ​ — ​ — ​ — ​ — ​ — Jordan Wu ​ 5,282 ​ — ​ 4,226 ​ 6,338 ​ — Dr. Yan-Kuin Su ​ — ​ — ​ — ​ — ​ — Yuan-Chuan Horng ​ — ​ — ​ — ​ — ​ — Dr.
Removed
(2) Dr. Liang-Gee Chen was elected as our independent director, with effect from August 16, 2022. (3) Norman Hung retired from our position of Executive Vice President, Sales and Marketing, with effect from September 30, 2022. (4) Hsien Chang Tsai was appointed as our Vice President, Sales and Operations, with effect from September 1, 2022. 6.C.
Added
Liang-Gee Chen ​ — ​ — ​ — ​ — ​ — Jessica Pan ​ 4,465 ​ — ​ 4,226 ​ 4,704 ​ — Hsien Chang Tsai ​ 2,113 ​ 28 ​ 4,226 ​ — ​ 28 Eric Li ​ 4,176 ​ — ​ 4,226 ​ 4,126 ​ — ​ 6.C.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeBiing-Seng Wu beneficially owns 474,259 ADSs purchased through Sanfair Asia Investments Ltd. in the open market according to his share purchase plan announced on December 3, 2021. Accordingly, Dr. Biing-Seng Wu may be deemed to beneficially own an aggregate of 76,904,468 ordinary shares, representing approximately 22.0% of the outstanding ordinary shares. (2) Whei-Lan Teng directly owns 1,335,548 ordinary shares.
Biggest changeBiing-Seng Wu may be deemed to beneficially own an aggregate of 76,904,468 ordinary shares, representing approximately 22.0% of the outstanding ordinary shares. (2) Whei-Lan Teng beneficially owns 5,434,918 ordinary shares through Renmar Finance Limited, a wholly owned subsidiary of Pleione Technology Investment Pte. Ltd. Both of the entities are investment companies controlled by Whei-Lan Teng.
The following table sets forth information known to us with respect to the beneficial ownership of our shares as of March 31, 2023, the most recent practicable date, by (i) each shareholder known by us to beneficially own more than 5% of our shares and (ii) all directors and executive officers as a group. ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Shares ​ Shares ​ Name of Beneficial Owner Beneficially Owned (3) Beneficially Owned (3) ​ Dr.
The following table sets forth information known to us with respect to the beneficial ownership of our shares as of March 31, 2024, the most recent practicable date, by (i) each shareholder known by us to beneficially own more than 5% of our shares and (ii) all directors and executive officers as a group. ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage of ​ ​ Number of Shares ​ Shares ​ Name of Beneficial Owner Beneficially Owned (3) Beneficially Owned (3) ​ Dr.
As a result, the number of ordinary shares outstanding was doubled and each of our ordinary shares had a par value of $0.3. 78 Table of Contents In connection with the above changes, we also changed our ADS ratio effective August 10, 2009 from one ADS representing one ordinary share to one ADS representing two ordinary shares.
As a result, the number of ordinary shares outstanding was doubled and each of our ordinary shares had a par value of $0.3. 81 Table of Contents In connection with the above changes, we also changed our ADS ratio effective August 10, 2009 from one ADS representing one ordinary share to one ADS representing two ordinary shares.
Biing-Seng Wu (1) ​ 76,904,468 22.0 % Whei-Lan Teng (2) ​ 22,868,370 6.6 % All directors and executive officers as a group (3) ​ 85,317,015 24.5 % Note: (1) Dr. Biing-Seng Wu directly owns 315,322 ordinary shares. Dr.
Biing-Seng Wu (1) ​ 76,904,468 ​ 22.0 % Whei-Lan Teng (2) ​ 22,847,370 ​ 6.5 % All directors and executive officers as a group (3) ​ 85,395,557 ​ 24.4 % Note: (1) Dr. Biing-Seng Wu directly owns 315,322 ordinary shares. Dr.
In 2020, 2021 and 2022, Viewsil provided technical service on a new source driver chip and integrated circuit module for the Company’s research activities for a fee of $1.4 million, $1.4 million and $1.05 million, respectively, which was charged to research and development expense.
In 2021, 2022 and 2023, Viewsil provided technical service on a new source driver chip and integrated circuit module for the Company’s research activities for a fee of $1.4 million, $1.05 million and $1.14 million, respectively, which was charged to research and development expense. As of December 31, 2022, the related payables were $2.45 million.
JPMorgan Chase Bank, N.A., advised us that, as of March 31, 2023, 106,389,830 ADSs, representing 212,779,660 common shares, were held of record by Cede & Co. and 8 other registered shareholders domiciled in and outside of the United States. We have no further information as to common shares held, or beneficially owned, by U.S. persons.
JPMorgan Chase Bank, N.A., advised us that, as of March 31, 2024, 105,986,473 ADSs, representing 211,972,946 common shares, were held of record by Cede & Co. and 10 other registered shareholders domiciled in and outside of the United States. We have no further information as to common shares held, or beneficially owned, by U.S. persons.
We may consider providing further future loans to VST. 79 Table of Contents Viewsil Microelectronics (Kunshan)Limited (Viewsil) Viewsil is an equity method investee of the Company.
We may consider providing further future loans to VST. 82 Table of Contents Viewsil Microelectronics (Kunshan)Limited (Viewsil) Viewsil is an equity method investee of the Company, becoming a subsidiary of the Company from December 30, 2023.
As of March 31, 2023, 348,833,050 of our shares were outstanding. We believe that, of such shares, 212,779,660 shares in the form of ADSs were registered in the name of a nominee of JPMorgan Chase Bank, N.A., the depositary under our ADS deposit agreement.
As of March 31, 2024, 349,448,102 of our shares were outstanding. We believe that, of such shares, 211,972,946 shares in the form of ADSs were registered in the name of a nominee of JPMorgan Chase Bank, N.A., the depositary under our ADS deposit agreement.
From acquisition date of CMVT to December 31, 2020, in 2021 and 2022, the purchase of raw materials from CMMT was $0.7 million, $3.5 million and $1.1 million, respectively. As of December 31, 2021 and 2022, the related payable resulting from the purchase of raw materials were $0.2 million and $0.3 million, respectively. 7.C.
Cheng Mei Materials Technology Corporation (CMMT) CMMT is an equity method investor of CMVT. In 2021, 2022 and 2023, the purchase of raw materials from CMMT was $3.5 million, $1.1 million and $1.3 million, respectively. As of December 31, 2022 and 2023, the related payable resulting from the purchase of raw materials were $0.3 million and $0.9 million, respectively. 7.C.
Whei-Lan Teng beneficially owns 4,120,370 ordinary shares through Renmar Finance Limited, which is an investment company controlled by Whei-Lan Teng. In addition, Whei-Lan Teng, may be attributed beneficial ownership of 17,412,452 ordinary shares held in trust by Corenmar Investment Limited for the benefit of her children.
In addition, Whei-Lan Teng, may be attributed beneficial ownership of 17,412,452 ordinary shares held in trust by Corenmar Investment Limited for the benefit of her children. Whei-Lan Teng therefore may be deemed to have shared power to vote or dispose of 22,847,370 ordinary shares.
Biing-Seng Wu beneficially owns 55,600,790 ordinary shares and 20,039,838 ordinary shares through Sanfair Asia Investments Ltd. and Chi-Duan Investment Co., Ltd., respectively, both of which are investment companies controlled by Dr. Biing-Seng Wu. Additionally, Dr.
Biing-Seng Wu beneficially owns (a) 56,549,308 ordinary shares through Sanfair Asia Investments Ltd., a wholly owned subsidiary of Taxus Technology Investment Pte. Ltd. and (b) 20,039,838 ordinary shares through Chi-Duan Investment Co. Ltd. All of the three entities are investment companies controlled by Biing-Seng Wu. Accordingly, Dr.
As of December 31, 2021 and 2022, we made an interest free loan of $1.2 million and $1.2 million, respectively, to VST for short-term funding needs. The loan is repayable on demand and the Company expects it will be repaid in full during 2023.
Related Party Transactions Viewsil Technology Limited (VST) VST is a subsidiary of our equity method investee, Viewsil Microelectronics (Kunshan) Limited which became a subsidiary of the Company from December 30, 2023. As of December 31, 2022, we made an interest free loan of $1.2 million to VST for short-term funding needs. The loan is repayable on demand.
(3) Numbers of shares beneficially owned by all directors and executive officers as a group already include an aggregate of 76,904,468 ordinary shares beneficially owned by Dr. Biing-Seng Wu. None of our major shareholders has voting rights different from those of other shareholders.
Accordingly, Whei-Lan Teng may be deemed to beneficially own an aggregate of 22,847,370 ordinary shares, representing approximately 6.5% of the outstanding ordinary shares. (3) Numbers of shares beneficially owned by all directors and executive officers as a group already include an aggregate of 76,904,468 ordinary shares beneficially owned by Dr. Biing-Seng Wu.
We are not aware of any arrangement that may, at a subsequent date, result in a change of control of our company. 7.B. Related Party Transactions Viewsil Technology Limited (VST) VST is a subsidiary of our equity method investee, Viewsil Microelectronics (Kunshan) Limited.
None of our major shareholders has voting rights different from those of other shareholders. We are not aware of any arrangement that may, at a subsequent date, result in a change of control of our company. 7.B.
Removed
Whei-Lan Teng therefore may be deemed to have shared power to vote or dispose of 22,868,370 ordinary shares. Accordingly, Whei-Lan Teng may be deemed to beneficially own an aggregate of 22,868,370 ordinary shares, representing approximately 6.6% of the outstanding ordinary shares.
Removed
As of December 31, 2021 and 2022, the related payables were $1.4 million and $2.45 million, respectively. Cheng Mei Materials Technology Corporation (CMMT) CMMT is an equity method investor of CMVT, which became as a subsidiary of the Company from October 30, 2020.

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