Thank you, Eric.
customer solid on and focus tailwinds, and product relationships. were a solidifying our efforts macro secure thanks Our in to to steadfast optimizing capacity, spectacular level results achieved strategic XXXX mix
contributed factors the of profit to sales record margins. and All these
to consumption congestion, the Now electronics and limited inflationary into pressure visibility conflict. COVID-XX areas is XXXX, ongoing expected impacted global capacity over consumer backdrop geographical shortage, well which the certain is as of by worries into potentially The pandemic, of worldwide port foundry against into we ahead the XXXX. with look rather extend industry-wide
automotive year growth ultralow anticipate However, concerns. and prospect, few will we macroeconomic image businesses, for two product will by beyond. growth power about is TDDI Robust foundry good support our margin, demand on both to confident are by AI regardless these automotive strong XXXX throughout while notably other traditional with our a We sensing gross is capacity backed we upbeat ahead areas product of IC and feel in exponential areas, backed product track lines experience outgrow stay the automotive driver XXXX. the which strong
cumulative first driver expected to soon as driver, of TDDI, IC, expect than in including automotive reach TDDI the total this our sales. in are In shipments the quarter of automotive Tcon XX units represent XX% OLED We quarter to second XXXX, year. and product traditional million of more as our sales,
position automotive in our business customer power have encouraged As early highly success the mix contribution we terms for it long-term far with a are image and a both after visibility. by business of revenue seen of the grows, sensing adopted Meanwhile, will application. better leading product AI we margin profit ultralow it thus mainstream
base growth awarded line. and variety We wins see expect margin this high sales high broad robust leading a to more design new a across of for to customer product applications
let shortage. quickly Now address me capacity the foundry ongoing
We the to agreements been imbalance achieve to. nodes secure In XXXX this mature business primarily turn entered deposit and we contractual partnerships also leading customers and vast the anchored in where has our continue increase our and, which majority on prepay are supply-demand end with select visibility. long-term continuing we Himax the agreements panel instances, their expect supply in business to they a our capacity of new that or pursue proactive available chip regard, some to throughout to XXXX, especially improves make the goals. meantime, in makers
gross both the for a has in on pricing margin While sequential due quarter customer guided recently and to modest foundry of a for factors. decline the stabilized first couple we sides,
of their First, pricing foundries goods previous from prices. our raising quarter the represents cost still sold were quarter when this
will decrease a quarter quarter first year a higher. we the the margin such from and substantially however, On in Second, premium first have expedited a paid quarter. since over still year benefitted we be from during in basis, orders customers orders fourth seen who our
towards major and quarter in of With Year to year our by ahead Wherein, revenue and driver long-term the of will and further are gross backed an panel a business goals. seasonally maintaining the one work well-positioned than foundry capacity the we more due growth to holidays. first Lunar profit to the with XXXX, update anticipate last now Looking large let us start continue our year has the secured slowest line Historically, advanced been business. we an that, margin, to top high New portfolio, on XXXX. IC continue into grow product
In addition, softness seeing flexibility to with we to which Nevertheless, are China market offering and towards direct comprehensive our covering with notebook, monitor certain us in demand. intensified customers armed diversified TV, tandem a the is Himax the with suppliers segments with and production provides product and competition. local take actions sectors stronger in and
mainly first the sales first to by to from down anchored expected adjustments but large is inventory sequentially, high-end driver be due around sequentially sales increase key Despite represent panel IC IC display shipments consecutive to drop both the around an to increases. and of XX% TV accounts. this quarter quarter quarter, slowing are to in TV large-sized last customers’ IC the season, revenue low the For will sales flat momentum expect response and flat IC year-over-year. Conversely, projected notebook be to quarterly in after we to monitor strong slightly
customers one-stop remain markets and shopping advanced and a displays for leading premium Foreseeing the for demand markets. advanced while TV, and for end monitor we ICs strong, foundry displays end in end the the the and toward higher move respective experience, notebook to focusing of continue Tcons on shortage prevailing continuation higher to providing driver models
on competition. high-speed low further China We and customers’ differentiates margins IC power positive consumption, local driver will including products, business higher ultra-large-sized, a display XXXX. our entry feature high-aspect-ratio us remain high represent are refresh large interface, design. next from of for generation curved-view and barrier upgrades We profit that also All these boost rate, for help our supporting
and quarter, to digit decline small automotive for mid-single XX% smartphone by Now business. digit but quarter sequentially is increase turn sales expected let’s digit are growth, down again, slightly sequentially around the driver to to and up to poised strong revenue decline tablet Sales year-over-year. the IC be first drivers, medium-sized expected are display double post mid-single while IC over to business sequentially. In another of XX%
segments driver Now let’s these medium-sized and the major small review business. product display three within IC
First, global the multi-year one and strong XXXX. coverage capacity all secured with panel have provide long-term foundry number on an share makers Order we leading market sector backlog design-win where sector. IC the market driver for sales Himax to expect visibility automotive capacity, houses automotive a of in car XX%. be automotive contributor major our starting by alongside enlarged we numerous Backed good and
now are sales again the which our in up targeting strong year XXX% to than went already the more top from double on of We sales XXXX automotive XXXX, before.
TDDI, automotive now. with our leading are set them across sequentially, is a now. foundry total shortage world our outgrow capacity prepared its portion the in we capacity, us after the the with own automotive projects recent ramping our to decent sales of much More we still XX% where OEMs product market quarter, units terms DDIC right year-over-year. automotive of forward. area right going The first AMOLED, the suffering foundry the quarter sales. just shortly board IC automotive and Gen introduction the first mass and of automotive makers, of XXX% X with year, last as the Currently, DDIC, X for the XX% that small to TDDI which leading from production. For to earlier than panel the in better of are for shortage shipments as with for announced larger driver than growth, million much on severe are XX% already achieved expected than started a still are automotive the Gen already X accounting which DDIC Notwithstanding specifically, automotive design-win Tier-Xs we more those most severe market expect over an more is The hundreds We of our during grow increase TDDI, QX shipment TDDI over mainstream sequentially, sales, we alone. dominates we has QX and TDDI become grow to of
compete last year quarter X.X ship panel a and shipment TDDI, for over brings on is considerably us higher become per late X to momentum growth not year. and relatively in TDDI Automotive basis TDDI carry expected million also in a accelerating over million XXXX but for harder us units fourth automotive reached this we throughout comers. Automotive the a engine with QX years the the to Our ahead. expect still to only around technology, major value much new units in has content
to resolution display demands. market display covering and IC for technologies, Looking than as product comprehensive improving the with leader larger traditional trends, ever caters sophisticated per a all automotive including size the driver before, ever car and the embrace displays market Tcon, and at more is display to LTDI products also much and more display most image new interactive, is offerings industry local TDDI, solutions vehicle quality. entire There automotive as in DDIC dimming technologies stylish indicating towards business leading continues curved spectrum as well such designs of shift OLED. and the Himax industry’s technology driver and areas
cumulatively in since. essential stylish, a pioneered that technology TDDI, technology is for and millions of we new curved large production and have mass the XXXX sized, units shipped automotive displays, of back For automotive the
across design-wins customers indirect the project We with direct to new continue dominate continents. and
the strives incorporation For and multi-chip industry architecture. led curved design of XX again touch displays, a features we with inches, introducing cutting-edge that technology sophisticated seamless than larger automotive by slim LTDI for
coverage made quarters, more incorporate new We into to across panel makers vehicle OEMs their progress are by for having and them design-win recent increased our LTDI Tier-Xs the models. encouraged engaged and in
are mass slated them starting Some of XXXX. the for half first production of
rise continue our thereafter, will the display coming the commencement years. in market TDDI that we the in LTDI of mass production driver confident market share With overall to and automotive are
Next and on businesses. tablet smartphone
generation challenged the global worldwide to in stock slowdown, transition We QX initiated smartphone strategically factor expect slowing not a new this bezel time, a first product be next market, quarter. key for double-digit layers of and longer generation sales by is held is decline less least, to output to designed normal frame that ultra from sequentially, in In of quarter to new during requires IC production, smartphone features. output. makers more by therefore but business product’s higher product, to which resolution QX, the back cycle the with we during the support smartphone which, lead quarter. smartphone plan product masking and customers’ Himax The only last production specific is production inventory rate, designs a slim and, second longer but amidst will starting expected The new higher
mid-single tablet high decline tablet QX in digit worldwide Our market are adjustment level. due a expected sales from to to
leading are tablet up the However, names benefitted our be first sales, digit in by proactive all the quarter, of TDDI adoption expected solutions. our bucking TDDI seasonality, the by non-iOS sequentially low-single to
continue larger for see surging to in following displays, and tablets an penetration acceleration frame rate TDDI We stylus sized features. higher needs active for
several vendors, for widely and IC leading adopted gain feature broadly in solutions tablet non-iOS literally education we generation driver has tablet by Among all As Chinese adopted are stylus traction tablet dominating customers’ fast the expanding next our where supplier players. with our been products. all, to continue active TDDI tablets are tablet TDDI seeing
driver another business, Turning e-paper and driver product small lineup. medium-sized our the in to
e-paper with agreements. sequentially of driven to by early which sales, leading a in currently total long-term year-over-year up more customers and projects is grow more XXX% of and portion than small Our ramp supply only QX, the backed by than set business, represents by XXX%
products. are our e-reading projects their world-leading the consolidates market segments with We and certain XXXX for and emerging in presence e-paper This from collaborating onward. e-signage ASIC on customers next generation
gear and projects update Chinese ICs for driver is an AMOLED. vendors. for awarded a flexible up up our automotive further flagship continues driver for panel in IC ramped application successfully our makers. with with OLED customer’s automotive major The number Next AMOLED on of growing model. EV the In EV for for Korean Tcon development AMOLED partnership Himax to and QX,
for OLED mass panel quarter In expected addition, our second Chinese with production makers. is tablet of this year to commence the in
years, As we also for resources in with have AMOLED continue on top tier capacity ICs R&D In drivers. few commit display serious secured driver capacity engagement the smartphone meaningful to driver customers. of to smartphone, next for we through OLED constraints view OLED
the Now non-driver progress made let we of me some IC share businesses. on the
in anticipate digit timing We Chromebook a weaker notebook decrease from demand of sequentially start Tcon Let’s sales the result controller. sectors. TV QX as and to single
sales around up basis, year-over-year on XX%. However, Tcon will be a
TV, positioned types and for the notebook low prospect are growth ourselves and for monitor, long-term new television we various successfully in entertainment We about XK/XK and consumers’ view higher higher of power the have where gaming Tcon optimistic pursuance business film, including areas of end of value-added of gaming.
Additionally, we into extend and our product automotive reach Tcon gaming markets. TV
mass for Tcon TV premium Our leading them TV one also with TV XXXHz driving collaboration the of business second slated in introducing OEMs moving awards some numerous of are Tier We gaming for Tcon the XXXX. makers. production and world’s XK penetrated makers’ will starting quarter the forces major models, cuttingedge panel automotive the believe into we the with our local non-driver has won X of forward. market, by dimming Tcon In the first industry segment new and be car
image image gears total and proprietary sensor, switching power processor incorporates ultralow Now AI solution, Himax AI ultralow our to AI sensing CMOS algorithm. which the power CNN-based
milestone top-tier entered sizable customer’s the year, a order marking within since another release. year in earlier, one new reported QX our impressive just AI name production As successfully for for mainstream initial business our last application
further We end official give announcement. customer’s details will after the
We where have increasing of we leading is this as design-in with progress speak. vendors application made other also projects number mainstream good the on
I area the the a geographical meter to significant where success mentioned, wide adopted is widely expect or addition reading across customers our see China. numerous has In volume solution application automatic second been story we AMR to total in just in by AI
which meter of server leakage, only to collect Our or The water sized metadata byte traditional cameras, base edge. automatically need reading. to The outperforming the solutions, local for to years, a cloud a without have pack of meter capability, five has large the reading. usually over massive and with conventional AI AMR image on device to in-time perform consumption for existing transmit eliminating operating detection lifetime the the power-saving data battery deployed locally meters, with packs transmits form water of the data billing battery consumption enable abnormal over to AI the greatly AI and manual are bulky installed in
that seeing of as we other collaboration applications, applications panoramic we we automation. Azure their such among solution health the things. wide are leading home and TensorFlow, deployment platform We accelerated surveillance sockets notebook, new design-in conferencing, game utility are least, extraordinary appliances, range Microsoft partners, AI represent endoscope, industry. solutions further on with smart on Google seeing of look to drive Moreover, as camera, our such automotive, edge-to-cloud design-in extremely factory for way are as to and cloud excited medical, healthcare, and AI but video our on agriculture, of numerous meter, leverage service an battery-powered a activities the Last already are examination to an adoption the changer home, retail area may smart about office, not for including
more detail in due will report We course.
new by see time contribution has encouraged are short in very increasing this expect of through traction We a amount relatively generated and the line sales beyond. XXXX product to and
surge given give technologies, Lastly, in efforts. an optical recent our R&D years lines I’d of to like the the of immersive metaverse product committed we interest which on have update and related to
display augmentation onto seamlessly where one combined right environment, AR/VR and/or virtual real-life by displays individually projected glasses. role related technologies, are considered the vital. real-world users applications, twins for help ideal users AR digital XD Our technologies devices see LCoS, in metaverse and metaverse the with the feature optical WLO objects devices. the vision AR real-life, To glasses, separate objects the key glasses and of onto of and a through engines may or connect between play and XD transit Sensing, three enabling
I sensors, sensing years. gesture of all which position these development objects making modules For display ideal of image with over for with enable of patterns lower information, industry’s ToF our towards this, contactless making in for technologies enable technologies, which weight handheld in we offer various XD and the digital millions a the just the technology, have higher decoding eliminating XD volume offers waveguide power combined we and one can in propagates quite proven – names significantly all in that the reconstruction tiniest light AR of or are technology Microdisplay, product of recognition, controllers, have with idea brightness, provides the biggest tech glasses, In WLO the the AR when a with for showcases essential Himax eyes. path or, for and LCoS the manufacturing shipped track lighter the market-leading Front-lit Himax further mentioned, proven few hundreds WLO in need The environment, perception both consumption, enhancing already business and Time products technology that XD-based interface devices. of twin AR/VR XD predefined a leading production from To headsets. also the light Flight, structured display embedded virtual enabling and Furthermore, sensing. records for technology LCoS
enable the the through mass deployment, still industry, and are forefront metaverse investing with away we technologies partnerships is of the in aggressively While at is these bring years space. who leading from volume are life players Himax ready to key industry’s metaverse to the to tech
miss the not ahead. opportunities to ready are We thing and next big the seize will
develop. We continues additional it this progress to as new will report arena in
expect my and this revenue ready you take joining Himax. today’s concludes quarter. appreciate first That are you to your we business, report in decline interest for IC non-driver For to for questions. sequentially the Thank quarter. high teens call in We now