himax set to supply ai chips for nvidia and tsmc
Tainan, Friday, 13 December 2024.
Himax is emerging as a key player in the AI chip market, potentially supplying TSMC and NVIDIA with its advanced Wafer-Level Optics (WLO) technology. This strategic development is expected to significantly bolster Himax’s growth, particularly in the AI and high-performance computing sectors. Himax’s collaboration with FOCI places it in a prime position within TSMC’s supply chain for Co-Packaged Optics (CPO), a critical component for future AI servers. The integration of CPO technology is crucial to address the growing demand for faster transmission speeds in AI chips. With plans to enter mass production in the coming years, Himax’s WLO business is anticipated to be a major growth driver. Expected increases in demand from CPO applications could begin boosting revenues by the end of 2024. This move aligns Himax with industry leaders NVIDIA and TSMC, enhancing its competitive stance in the rapidly evolving AI landscape.
Strategic positioning in advanced chip technology
Himax is strategically leveraging its WLO technology expertise to enter TSMC’s CPO and NVIDIA’s next-generation AI chip supply chain [1]. The company’s close partnership with FOCI, evidenced by its 5.3% equity stake, strengthens its position in the market [4]. TSMC plans to launch its innovative CPO technology, which integrates COUPE and CoWoS, by 2026 [4]. This development addresses the critical challenge of increasing transmission speeds required by advanced AI computing systems [4].
Revenue growth trajectory
The company’s WLO business is positioned for significant growth, with revenue contributions from CPO applications expected to begin in Q4 2024 through technical qualification and trial production [4]. The growth trajectory is projected to stabilize in 2025, followed by rapid acceleration in 2026 [4]. This timeline aligns with NVIDIA’s plans for its Rubin series chips, with Rubin and Rubin Ultra scheduled for mass production in 2026 and 2027 respectively [4].
Market impact and technological advancement
The integration of CPO technology is becoming increasingly crucial for AI server and HPC chip design [4]. This technology not only maximizes transfer efficiency but also addresses thermal management challenges in high-speed computing environments [4]. FOCI’s planned small-scale production of fiber array units and optical fiber-jump-in-system in 2025, utilizing ReLFACon technology, provides Himax with a strong foundation in the CPO component supply chain [4].