IC design house Himax Technologies expects its gross margin to hit a record high in fourth-quarter 2020, propelled by increasing shipments of time-controllers (TCON ICs), low-power CIS sensor, TDDI and AMOLED driver ICs, after seeing the margin edge up 1.3pp to 21% a quarter earlier.

The current tight capacity at upstream foundry houses has provided Himax a bit more leeway when it comes to pricing optimized by competitive product mix, according to company sources.

The company expects the tight capacity at foundry houses to persist in the next few years, and therefore it has maintained close communication with its foundry partners to ensure sufficient foundry support.

The company reported net profit of US$8.5 million for third-quarter 2020, up 511.1% sequentially and 217.7% on year. EPS was US$0.049 per diluted ADS.

For fourth-quarter 2020, it expects revenues to grow 10% sequentially from the US$239.9 million seen a quarter earlier, with gross margin to hit an all-time high of 29%. EPS per diluted ADS is likely to reach US$0.155-0.160.

Increasing shipments of TDDI chips, automotive driver ICs, and WiseEye WE-1 Plus AI chips will be the firm's growth drivers for fourh-quarter 2020 and 2021, said the company.

Himax upbeat about 4Q20 business outlook
Photo: Shihmin Fu, Digitimes, November 2020