There’s Global ‘Softness’ in All Industries That ‘Consume Display,’ Says Himax CEO

Display-driver chip supplier Himax Technology expects Q3 revenue in its large-screen display segment to decline from Q2 by the high-teens, said CEO Jordan Wu on a Q2 earnings call Thursday. There’s significant “overcapacity” and weak demand in large panels, and it’s “unlikely” that will "change in the near future," he said. “We expect to return to growth starting Q1 2020,” he said. 8K TVs “will continue to hold a small share in the TV market because 8K content and transmission technology are still early in their “lifecycle,” he said. “But 8K TVs remain a strategic area for Himax” and are expected to boost demand for higher-end LCD driver chips and timing-controller components, he said. Himax is “seeing softness in all industries that consume display,” said Wu. “We have faced multiple challenges that have had an adverse effect on our overall financial performance over the past 12 months,” including “severe” shortages in chip-on-film materials supply and wafer capacity, he said. “While these constraints were resolved towards the end of 2018, we are still suffering from the repercussions of the loss of new projects,” he said. “We did not get to take part in the mass production of those projects, many of which started in the second or third quarter this year,” said Wu. The stock lost nearly 23 percent of its value the past two trading days after closing 13.7 percent lower Friday at $2.34.