4.A. History and Development of the Company Himax Taiwan, our predecessor, was incorporated on June 12, 2001 as a limited liability company under the laws of the ROC. On April 26, 2005, we established Himax Technologies Limited, an exempted company with limited liability under the Cayman Islands Companies Law, as a holding company to hold the shares of Himax Taiwan in connection with our reorganization and share exchange. On October 14, 2005, Himax Taiwan became our wholly owned subsidiary through a share exchange consummated pursuant to the ROC Business Mergers and Acquisitions Law through which we acquired all of the issued and outstanding shares of Himax Taiwan, and we issued ordinary shares to the shareholders of Himax Taiwan. Shareholders of Himax Taiwan received one of our ordinary shares in exchange for one Himax Taiwan common share. The share exchange was unanimously approved by shareholders of Himax Taiwan on June 10, 2005 with no dissenting shareholders and by the ROC Investment Commission on August 30, 2005 for our inbound investment in Taiwan, and on September 7, 2005 for our outbound investment outside of Taiwan. We effected this reorganization and share exchange to comply with ROC laws, which prohibit a Taiwan incorporated company not otherwise publicly listed in Taiwan from listing its shares on an overseas stock exchange. Our reorganization enables us to maintain our operations through our Taiwan subsidiary, Himax Taiwan, while allowing us to list our shares overseas through our holding company structure. 19 Table of Contents On September 26, 2005, we changed our name to “Himax Technologies, Inc.,” and on October 17, 2005, Himax Taiwan changed its name to “Himax Technologies Limited” upon the approval of shareholders of both companies and amendments to the respective constitutive documents. We effected the name exchange in order to maintain continuity of operations and marketing under the trade name “Himax Technologies, Inc.,” which had been previously used by Himax Taiwan. Our ADSs have been listed on the NASDAQ Global Select Market since March 31, 2006. Our ordinary shares are not listed or publicly traded on any trading markets. In February 2007, we completed the acquisition of Wisepal, currently known as Himax Semiconductor, Inc., a fabless semiconductor company focusing on the development of LTPS TFT-LCD drivers for small and medium-sized applications. This transaction strengthened our competitive position in the small and medium-sized product areas and further diversified our technology and product offerings. 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. In July 2012, our subsidiary, Himax Display, completed the acquisition of Spatial Photonics, currently known as Himax Display (USA) Inc., a Delaware corporation engaged in the business of manufacturing and production of MEMS products. In June 2018, we completed the acquisition of Emza Visual Sense Ltd., or Emza, which is dedicated to the development of visual sensors that include proprietary machine-vision algorithms and specific architectures that enable always-on visual sensing capabilities, achieving improvement in power consumption, price and form factor. On October 25, 2022, we disposed of 100% of our shareholdings in Emza to a third party. From time to time, we have also made minority investments in various companies for strategic purposes in the ordinary course of business. Our principal executive offices are located at No. 26, Zilian Road, Xinshi District, Tainan City 744092, Taiwan, Republic of China. 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. 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; Asan-si and Bundang-gu, South Korea and Irvine and San Jose, California, Minneapolis, Minnesota and Detroit, Michigan, USA. Investor inquiries should be directed to our Investor Relations department by email to [email protected]. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The address of the SEC’s Internet site is http://www.sec.gov. Our website is www.himax.com.tw. The information contained on our website is not part of this annual report. 4.B. Business Overview We are a leading global fabless semiconductor solution provider dedicated to display imaging processing technologies. Our display driver ICs and timing controllers have been adopted at scale across multiple industries worldwide including TVs, PC monitors, laptops, mobile phones, tablets, automotive, ePaper devices, industrial displays, among others. As the global market share leader in automotive display technology, we offer innovative and comprehensive automotive IC solutions, including traditional driver ICs, advanced in-cell Touch and Display Driver Integration (TDDI), local dimming timing controllers (Local Dimming TCON), Large Touch and Display Driver Integration (LTDI) and OLED technologies. Our industry-leading WiseEye Ultralow Power AI Sensing technology which incorporates Himax proprietary ultralow power AI processor, always-on CMOS image sensor, and CNN-based AI algorithm has been widely deployed in consumer electronics and AIoT applications. Himax optics technologies, such as wafer level optics (WLO), LCoS microdisplays and 3D sensing solutions, are critical enablers of emerging AR/VR and other next-generation applications. Industry Background We mainly operate in the flat panel display semiconductor industry. As the majority of our revenues derive from products that are critical components of flat panel displays, such as display drivers, timing controllers, power ICs and other semiconductor products, our industry is closely linked to the trends and developments of the flat panel display industry. 20 Table of Contents Flat Panel Display Semiconductors Flat panel displays require different semiconductors depending upon the display technologies and the applications. Some of the most important ones include the following: ● Display Driver. The display driver receives image data from the timing controller and delivers precise analog voltages or currents to create images on the display. 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. 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. The two main types of display drivers for a display panel are gate drivers and source drivers. Gate drivers turn on the transistor within each pixel cell on the horizontal line on the panel for data input at each row. Source drivers receive image data from the timing controller and generate voltage that is applied to the liquid crystal within each pixel cell on the vertical line on the panel for data input at each column. The combination determines the colors generated by each pixel. Typically, multiple gate drivers and source drivers are installed separately on the panel. However, for certain small and medium-sized applications, gate drivers and source drivers are integrated into a single chip due to space and cost considerations. Large-sized panels typically have higher resolution and require more display drivers than small and medium-sized panels. 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. ● Timing Controller. The timing controller receives image data and converts the format for the source drivers’ input. 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. An operational amplifier supplies the reference voltage to source drivers in order to make their output voltage uniform. ● Power IC. Power ICs include certain drivers, amplifiers, DC to DC converters and other semiconductors designed to enhance power management, such as voltage regulation, voltage boosting and battery management. ● Touch Controller IC. For touch screen applications, touch controller ICs enable touch interfaces, such as capacitive touch panels, to identify, qualify and track user’s contacts with precision and sensibility. For TFT LCD panels, the touch controller may be integrated with display drivers as an in - cell TDDI solution, commonly adopted in devices including smartphones, tablets, automotive displays, and notebooks. In contrast, OLED panels typically adopt a discrete touch controller to realize touch functionality. ● Others. Flat panel displays also require multiple general purposes semiconductors such as memory, power converters and inverters. Characteristics of the Display Driver Market Although we operate in several distinct segments of the flat panel display semiconductor industry, our principal products are display drivers. Display drivers are critical components of flat panel displays. The display driver market has specific characteristics, including those discussed below. 21 Table of Contents Concentration of Panel Manufacturers The global TFT-LCD panel industry consists of a small number of manufacturers, substantially all of which are based in Asia. In recent years, Korean TFT-LCD panel makers have gradually undergone restructurings to shift their technology and manufacture focus from TFT-LCD to OLED and TFT-LCD panel manufacturers, especially China-based manufacturers which have invested or are planning to invest heavily to establish, construct and ramp up additional fab capacity. The capital-intensive nature of the industry often results in TFT-LCD panel manufacturers operating at a high level of capacity utilization in order to reduce unit costs. This tends to create a temporary oversupply of panels, which reduces the average selling price of panels and puts pricing pressure on component companies including display driver companies. Moreover, the concentration of panel manufacturers permits major panel manufacturers to exert pricing pressure on display driver companies such as us. The small number of panel manufacturers exacerbates this situation as display driver companies, in addition to seeking to expand their customer base, must also focus on winning a larger percentage of such customers’ display driver requirements. Customization Requirements Each panel display has a unique pixel design to meet its particular requirements. To optimize the panel’s performance, display drivers have to be customized for each panel design. The most common customization requirement is for the display driver company to optimize the gamma curve of each display driver for each panel design. 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. Some display drivers require mixed-signal design since they combine both analog and digital devices on a single semiconductor to process both analog signals and digital data. Manufacturing display drivers require high-voltage CMOS process technology operating typically at 4.5 to 24 volts for source drivers and 10 to 50 volts for gate drivers, levels of voltage which are not standard in the semiconductor industry. For display drivers, the driving voltage must be maintained under a very high degree of uniformity, which can be difficult to achieve using standard CMOS process technology. Moreover, manufacturing display drivers does not require very small-geometry semiconductor processes. Typically, the manufacturing process for large panel display drivers require geometries between 0.11 micron and 1 micron because the physical dimensions of a high-voltage device do not allow for the economical reduction in geometries below this range. We believe that there are a limited number of fabs with high-voltage CMOS process technology that are capable of high-volume manufacturing of display drivers. Special Assembly and Testing Requirements Manufacturing display drivers requires certain assembly and testing technologies and equipment that are not standard for other semiconductors and are offered by a limited number of providers. The assembly of display drivers typically uses either tape-automated bonding, also known as TAB, or chip-on-glass, also known as COG, technologies. Display drivers also require gold bumping, which is a process in which gold bumps are plated onto each wafer to connect the die and the processed tape, in the case of TAB packages, and the glass, in the case of COG packages. TAB may utilize tape carrier packages, also known as TCP, or chip on film, also known as COF. The type of assembly used depends on the panel manufacturer’s design, which is influenced by panel size and application and is typically determined by the panel manufacturers. Display drivers for large-sized applications typically require TAB package and, to a lesser extent, COG package types, whereas display drivers for smartphone, tablet and consumer electronics products typically require COG packages. 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. 22 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. 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. As a result, a company’s ability to deliver its products on a timely basis at the quality and quantity required is critical to satisfying its existing customers and winning new ones. Such supply chain management is particularly crucial to fabless display driver companies that do not have their own in-house manufacturing capacity. In the case of display drivers, supply chain management is further complicated by the high-voltage CMOS process technology and the special assembly and testing requirements that are not standard in the semiconductor industry. Access to this capacity also depends in part on display driver companies having received assurances of demand for their products since semiconductor manufacturing service providers require credible demand forecasts before allocating capacity among customers and investing to expand their capacity to support growth. Need for Higher Level of Integration The small form factor of smartphone, tablet, automotive and certain consumer electronics products restricts the space for components. Small and medium-sized panel applications typically require one or more source drivers, one or more gate drivers and one timing controller, which can be installed as separate semiconductors or as an integrated single-chip driver. Customers are increasingly demanding higher levels of integration in order to manufacture more compact panels, simplify the module assembly process and reduce unit costs. Display driver companies must be able to offer highly integrated chips that combine the source driver, gate driver and timing controller, as well as semiconductors such as memory, power circuit and image processors, into a single chip. Due to the size restrictions and stringent power consumption constraints of such display drivers, single-chip drivers are complex to design. For large-sized panel applications, integration is both more difficult to achieve and less important since size and weight are less of a priority. Lastly, as some of our TFT-LCD panel customers had turned to pure in-cell TDDI panel development for thinner display designs, we have developed a series of single chip touch display driver integrated circuit (TDDI) for advanced in-cell touch display panel. Products and Solutions We have several principal product lines: ● Display drivers and timing controllers; ● Touch controller ICs; ● ASIC service; ● LCoS and MEMS products; ● Power ICs; ● CMOS image sensor products; ● Wafer level optics products; ● 3D sensing business; and ● WiseEye Ultralow Power AI Sensing. 23 Table of Contents Display Drivers and Timing Controllers Display Driver Characteristics Display drivers deliver precise analog voltages and currents that activate the pixels on panels. The following is a summary of certain display driver characteristics and their relationship to panel performance. ● Resolution and Number of Channels. Resolution refers to the number of pixels per line multiplied by the number of lines, which determines the level of fine detail within an image displayed on a panel. For example, a color display screen with 1,024 x 768 pixels has 1,024 red columns, 1,024 green columns and 1,024 blue columns for a total of 3,072 columns and 768 rows. The red, green and blue columns are commonly referred to as “RGB.” Therefore, the display drivers need to drive 3,072 column outputs and 768 row outputs. The number of display drivers required for each panel depends on the resolution of the panel and the number of channels per display driver. For example, an XGA (1,024 x 768 pixels) panel requires eight 384-channel source drivers (1,024 x 3 = 384 x 8) and three 256-channel gate drivers (768 = 256 x 3), while a full HD (1,920 x 1,080 pixels) panel requires eight 720-channel source drivers and four 270-channel gate drivers. The number of display drivers required can be reduced by using drivers with a higher number of channels. For example, a full HD panel can have six 960-channel source drivers instead of eight 720-channel source drivers. Thus, using display drivers with a higher number of channels can reduce the number of display drivers required for each panel, although display drivers with a higher number of channels typically have higher unit costs. ● Color Depth. Color depth is the number of colors that can be displayed on a screen, which is determined by the number of shades of a color, also known as gray scale, that can be shown by the panel. For example, a 6-bit source driver is capable of generating 26 x 26 x 26 = 218, or 262K colors, and similarly, an 8-bit source driver is capable of generating 16 million colors. Typically, for TFT-LCD panels currently in commercial production, 262K, 16 million and 1 billion colors are supported by 6-bit, 8-bit and 10-bit source drivers, respectively. ● Operational Voltage. A display driver operates with two voltages: the input voltage (which enables it to receive signals from the timing controller) and the output voltage (which, in the case of source drivers, is applied to liquid crystals and, in the case of gate drivers, is used to switch on the TFT device). Source drivers typically operate at input voltages from 3.3 to 1.8 volts and output voltages ranging from 4.5 to 24 volts. Gate drivers typically operate at input voltages from 3.3 to 1.8 volts and output voltages ranging from 10 to 50 volts. Lower input voltage saves power and lowers electromagnetic interference, or EMI. 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. The relationship between the light passing through a pixel and the voltage applied to it by the source driver is nonlinear and is referred to as the “gamma curve” of the source driver. Different panel design and manufacturing processes require source drivers with different gamma curves. Display drivers need to adjust the gamma curve to fit the pixel design. Due to the materials and processes used in manufacturing, panels may contain certain imperfections which can be corrected by the gamma curve of the source driver, a process which is generally known as “gamma correction.” For certain types of liquid crystal, the gamma curves for RGB cells are significantly different and thus need to be independently corrected. Some advanced display drivers feature three independent gamma curves for RGB cells. ● Driver Interface. Driver interface refers to the connection between the timing controller and display drivers. Display drivers increasingly require higher bandwidth interface technology to address the larger data volume necessary for video images. Panels used for higher data transmission applications, such as televisions, require more advanced interface technology. The principal types of interface technologies are transistor-to-transistor logic, or TTL, reduced swing differential signaling, or RSDS, mini-low voltage differential signaling, or mini-LVDS, and point-to-point high-speed interface. Among these, RSDS, mini-LVDS and point-to-point interface were developed as low power, low noise and low amplitude methods for high-speed data transmission using fewer copper wires and resulting in lower EMI. Moreover, there are some panel manufacturers developing their proprietary point-to-point interfaces, such as embedded panel interface, or EPI, USI-T, iSP, CEDS, CHPI, CSPI and CMPI. 24 Table of Contents ● Package Type. 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. In general, display drivers for small-sized panels mainly use COG package types, whereas display drivers for large-sized panels primarily use TAB package types and, to a lesser extent, COG package types. Large-Sized Applications We provide source drivers, gate drivers, PMIC, P-gamma OP level shifter and timing controllers (TCON) for large-sized panels principally used in desktop monitors, notebook computers and televisions. Display drivers used in large-sized applications feature different key characteristics, depending on the end-use application. For example, the industry trend for large-sized applications is generally toward super high channel, low power consumption, low cost, thin and light form factor, touch function, higher data transmission rate and higher driving capabilities. 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. For example, we successfully added 12-inch fabs into the pool of our foundry capacity for our large display driver ICs to ease the capacity shortage of 8” foundry where the vast majority of large panel driver ICs are fabricated. On high-end TV, Himax outpaced peers to lead the mass production of customized high-speed point-to-point (P2P) transmission using embedded panel intra interface such as iSP, CHPI, USI-T, CMPI, CEDS and CSPI for 4K TVs and 8K TV. On gaming monitor, we have high frame rate and high driving driver to meet various resolutions needs and frame rates such as UHD 240Hz, QHD 360Hz, FHD 480Hz, etc. We also successfully developed low power consumption driver applied in low power monitor to satisfied Energy Star 8.0 and even Energy Star 9.0. Additionally, our P2P driver and TCON ICs with 13.3” FHD can meet Intel 1W project requirements. For automotive TCONs, Himax has a dominant market share and offers a comprehensive product offerings featuring local dimming functionality, image enhancement, HDR, OSD, de-warping, to meet customers’ various needs of automotive displays We also provide gaming TCON for the new FHD 1000Hz, QHD 480Hz and UHD 240Hz gaming monitor and notebook. For high-end gaming -oriented applications, we have developed eDP 8.1G TCON to increase bandwidth. We are also developing eDP1.5 for notebooks. 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 ​ ​ ​ 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 ​ ​ ​ 25 Table of Contents 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, LTPO and LTPS panel●ASIC and standard OLED 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 < 3uS●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. 26 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, IGZO panel and LTPS panel. Meanwhile, the automotive display drivers can support higher output driving voltage for higher contrast ratio and faster liquid crystal response in automotive display applications. The automotive Timing Controller can support Local Dimming function for the goal of higher contrast ratio and thermal reduction in automotive display applications. We launched the world’s first TDDI design for automotive displays technology which started shipping in 2019 with meaningful mass production shipment to industrial leading automotive panel house, Tier1 and car brands starting 2021. Himax is the market leader in automotive display driver business covering the entire spectrum of products and technologies, including the industry’s most comprehensive traditional DDIC product offerings as well as TDDI, local dimming TCON, LTDI and OLED. Our automotive TDDI is already broadly adopted across the board and continue to expand, with a market share well over half. To date, Himax also has cumulatively shipped well over 100 million units of automotive TDDI, underscoring the strong market adoption of our technologies. With hundreds design-in projects secured and a continuous influx of new pipeline and design-wins across the board, Himax expects to sustain this decent growth in the years ahead. Regarding LTDI, a technology particularly suited for smart cockpits featuring large-size displays, panoramic views, free-form and curved designs, as well as in-cell touch functionality, we began mass production in the third quarter of 2023. Since then, we have received a growing number of customer inquiries, positioning LTDI to begin making meaningful sales contributions starting in 2026 and continue expanding thereafter. Our unwavering commitment to technological innovation sets us apart from our competitors, positioning us as leaders in the development of next-generation automotive display solutions. For TCON ICs for automotives, we also have embedded local dimming feature, image enhancement function, and HDR function for TFT-LCD panel to enhance contrast and picture quality performance of automotive display Additionally, several key panel makers have sought cooperation with Himax to develop OLED solutions for automotive applications. We provide ASIC OLED driver and TCON solutions that entered mass production a few years since 2021, and now we also provide standard ICs ready for broader deployment. In parallel, we are collaborating with major panel makers on new custom ASIC developments to address diverse customer requirements. Specifically, our meticulously engineered OLED on-cell touch controllers set a new standard, boasting an industry-leading touch signal-to-noise ratio of over 45 dB, greatly enhancing sensitivity that allows automotive displays to maintain proper functionality under challenging conditions, such as glove-wearing and wet finger operations. OLED touch controller IC for automotive has entered production in the third quarter of 2024 and is positioned for solid growth, supported by an increasing number of design-ins already secured globally. The 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​ 27 Table of Contents Product Features TFT-LCD Integrated Drivers ​ ●highly integrated chip embedded with source driver, timing controller and power circuit●support RGB, Multiple Drop LVDS / Point-to-Point LVDS input interfaces●support Single Gate, Dual Gate, Triple Gate, Quad 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 ±6.7V●support Fail Detect Function, including CRC Function●support Local Dimming Function●support Telltale OSD function●support internal thermal sensor●support HUD transparency detect function●passed AEC-Q100 Grade 2●support COG and COF package type​ 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, 4MUX, 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●support Image Enhancement function●support HDR function●support HUD transparency detect function●support HUD De-warping function●passed AEC-Q100 Grade 2​ TFT-LCD TDDI ​ ●highly integrated chip embedded with source driver, timing controller, touch controller and power circuit●support Multiple Drop LVDS / Point-to-Point LVDS input interfaces●support Single Gate, Dual Gate, Triple Gate, Quad Gate a-TFT panel structure●support 2MUX, 3MUX, 4MUX and 6MUX LTPS panel structure●support TP 2MUX panel structure●support GIP panel (a-TFT GIP or LTPS GIP or IGZO 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 Local Dimming function●support internal thermal sensor●passed AEC-Q100 Grade 2●support COG package type​ 28 Table of Contents Product Features 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●passed AEC-Q100 Grade 2●support COF and COG package types​ OLED Drivers ​ ●High-voltage process●High channel and high speed interface●Embedded P-gamma OP●IGZO/OLED Solution●Low power solution●Support up to 4K2K/8K4K resolution●Standard IC or Customized ASICs●passed AEC-Q100 Grade 2 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. 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. Himax started the shipments of in-cell TDDI for some smartphones in 2016 and extended TDDI solution to tablet application in 2017. In-cell TDDI, featuring thinner display, slimmer border, and better visual quality, has been getting popular, so we re-invented a new generation of TDDIs supporting COG and COF for 18:9 or wider aspect ratio with interlaced output pins, which makes the bottom border of the in-cell touch display even smaller to gain higher display to body ratio. Our FHD+ and HD+ TDDI successfully gained design-wins with a few leading Korean and Chinese smartphone brands and panel makers. We started small volume shipments in the first half of 2018 with accelerating volume starting in the second half of 2018 into 2019 and beyond. 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. We are collaborating closely with leading panel makers across China, Japan and Korea for OLED product development in smartphone, tablet, automotive and others. In the first quarter of 2022, Himax’s flexible OLED driver and TCON for automotive display successfully ramped up for a customer’s flagship EV model, while in the second quarter of 2022, the Company commenced production of OLED TCON and Driver IC chipsets for tablet applications for a leading OEM for their flagship models. Concurrently, the number of awarded OLED projects for automotive and tablets with leading global vendors continues to expand, strengthening our future business prospects. Himax remains committed to R&D investment to expand and upgrade its TCON portfolio and OLED solutions for tablet PC applications. 29 Table of Contents On the other hand, the application of in-cell TDDI started to extend from mainstream smartphone to larger displays in 2018. Himax started to offer various TDDI solutions for tablet, smart speakers, and even some infotainment displays in automobiles. The first tablet TDDI with WXGA resolution went into mass production in 2018 and also extended to leading smart speaker applications as well. In 2019, Himax announced a series of new driver and TDDIs for tablet application. The COF packaged driver IC solution enabled one leading tablet OEM to successfully launch a WQXGA resolution tablet with super slim bezel. We also added another new feature to our TDDI that can support up to WUXGA and WQXGA resolution which has gained several design-wins from tablet OEMs across Korea and China in 2019. We also launched the first TDDI supporting active stylus function in tablets which commenced mass production and contributed to our tablet application business in early 2020. With the demand increase for bigger size display, higher resolution, and precise touch accuracy and stylus performance, Himax kept developing new tablet TDDIs to broaden the company’s product lineup to maintain our leading market position. We started mass production for the world’s first 12.4” WQXGA super high-resolution in-cell tablet 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. For consumers, it offers a lighter weight, slimmer and more stylish design as well as improved touch accuracy with added option for active stylus. Our active stylus in-cell technology was adopted in many tablet products. In 2020, tablet demand picked up significantly, fueled mainly by remote work and online learning demand due to the pandemic. TDDI for tablet application continues to broaden its market. 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​ OLED 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 ​ 30 Table of Contents Electronic Paper Display Applications We offer display driver for the Electronic Paper Display (EPD) applications, Electronic Shelf Label (ESL) and Signage Display. The Electronic Paper Display (EPD) drivers can support various display resolutions to meet the customized needs of applications. Building on this foundation, we are expanding our capabilities to include a broader range of applications, including eNOTE for seamless digital note-taking, eMNT for enhanced learning and collaboration tools, and large- size Signage for public and commercial displays. We continue to work closely with leading global e-paper customers on next-generation product specifications, jointly expand the electronic reading and electronic shelf label markets. 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 55v●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 70v●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 USB3.0/SPI/I2C control interface●Fast full-color image update based on 32 palette colors●Support LPDDR2 memory ​ ​ ​ Electronic Shelf Label (ESL) Integrated Drivers ​ ●Highly integrated chip embedded with source driver and gate 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. Our touch controller solutions are suitable for touch panels in electronic devices with TFT-LCD or OLED displays, such as smartphones, tablets, automotive displays, and notebooks. We commenced production of capacitive touch controller ICs for on-cell TFT-LCD displays with smartphone brand customer since 2011. Subsequently, we expanded our customer base to include more well-known smartphone and tablet brands. 31 Table of Contents Aligning with the market trend of OLED display proliferation, we embarked several years ago on developing OLED on-cell touch controller ICs for tablets, notebooks, and automotive displays. Our OLED on-cell capacitive touch controller boasts several innovations and merits. It is meticulously engineered, featuring an industry-leading touch signal-to-noise ratio exceeding 45 dB, making it the ideal solution to meet the demands of flexible OLED panels commonly required for automotive applications. It also offers improved sensitivity to challenging user conditions such as glove-wearing and wet finger operations, ensuring exceptional performance with display quality unaffected by touch-display interactions. Moreover, our touch controller not only supports multi-finger capacitive touch and is compatible with various types of OLED panel types, but it can also cascade multiple chips to support displays larger than 20 inches. OLED on-cell touch controller IC for automotive has entered production in 2024 with several new projects underway with customers. For consumer and IT applications, it boasts a 240Hz high touch report rate at 5-finger operating conditions, and its embedded micro-controller single-chip solution reduces costs for flexible products. In addition, to support the active stylus feature of tablet and notebook touchscreens, our OLED touch controller ICs integrates multiple active stylus protocols, such as USI, MPP, LPP and HPP. Given automotive HUD applications are a rapidly emerging trend that is moving beyond simple text and symbols to deliver high-brightness, high-contrast, and AR-enhanced visuals, fueling demand for advanced TCON solutions. In 2025, Himax launched integrated TCON solution, HX8882-F series, with a comprehensive suite of features including an industry-first, full-area selectable local dewarping functionality, along with Himax’s market-leading expertise in local dimming technology and On-Screen Display (OSD) functions designed to meet automotive functional safety requirements. The multi-functional TCON is well-suited for HUD applications, combining powerful image enhancement with unmatched dewarping functionality. Further, its customizable design can accommodate automakers and Tier 1 suppliers varying HUD systems that present critical information with exceptional clarity, distortion-free visuals, thereby enhancing both user experience and road safety. The following table summarizes the features of our touch controller products: ​ ​ ​ Product ​ ​ Features OLED Capacitive Touch Controller ​ ●multi-finger (up to 10 fingers) capacitive touch for on-cell OLED●high touch SNR > 45dB, effectively reducing display interference and offering better display quality●high touch report rate: 240Hz @5 fingers●support large size panel (>20 inches)●supports multi-chip cascading without extra MCU●integrate multiple active stylus protocols: USI, MPP, LPP and HPP●low power consumption ●(automotive) support glove-wearing (> 2 mm) and wet finger operations●(automotive) CISPR25 Class-5 EMC qualified●(automotive) support temperature range from -40 °C to 105 °C ​ ​ ​ Touch Controller HX8882-F Series for Automotive HUD ​ ●LVDS in/out Interface●Support resolution up to 6K x 1K●Full-area selectable local de-warping●FHD de-warping for distortion-free HUD visuals●Up to 2000 local dimming zones●Compatible with free-form display●Built-in safety functions including fail detection, CRC, and OSD●Support OSD icon detection●Support for various HUD architectures (Windshield HUD,●Augmented Reality HUD, and Panoramic HUD)●AEC-Q100 compliant ​ 32 Table of Contents 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. All of these chips are implemented with our proprietary video process platform that includes our video process display IPs and high-speed transmission IPs. The process nodes adopted for these ASICs are usually 40nm, 55nm and even 22nm processes. From 2016, we also developed the depth sensing technology that aims 3D sensing and AR/VR markets. 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, continues to lead in microdisplay technology with a comprehensive product portfolio that includes Color-filter LCoS, Color-sequential LCoS, Front-lit LCoS, Phase modulation LCoS, and MEMS solutions. In 2026, Himax introduced its latest HX7319FL Color Sequential Front-lit LCoS microdisplay, marking a significant milestone for AR glasses and wearable applications. The HX7319FL integrates a 720 × 720 resolution LCoS display into an ultra-compact projector module measuring just 0.34 c.c. and weighing only 0.79 grams, enabling sleek, lightweight designs suitable for all-day wear. The HX7319FL consolidates LED illumination and a polarization beam splitter (PBS) within the microdisplay module, simplifying optical engine design and reducing assembly complexity, which lowers manufacturing time and cost for customers. When paired with advanced waveguide optics, the HX7319FL delivers over 1,000 nits of brightness to the eye, ensuring excellent visibility even in outdoor, high ambient light conditions. Its power-efficient architecture supports prolonged usage, making it ideal for next-generation AR eyewear. The latest generation of Front-lit LCoS achieves ultralow power consumption of just 200 mW, up to 350,000 nits of luminance, and 140% RGB color gamut coverage, producing vivid, rich colors for an immersive AR experience. The module achieves industry-leading miniaturization, measuring only 0.09 c.c. and 0.21 grams without a collimator lens, and remains compact at 0.34 c.c. and 0.79 grams with a collimator, showcasing exceptional capability in optical integration. Himax Display continues to expand its partnership with multiple waveguide vendors around the world, providing customers with a broader range of pairing options for AR glasses designs. These advancements—including ultra-slim form factor, ultralow power consumption, exceptional brightness, and superior color performance—are critical for mass adoption of real see-through AR glasses. Backed by over a decade of proven mass production expertise, an ISO-certified liquid crystal assembly line, and more than 4 million units shipped since 2012, Himax Display remains a preferred partner for AR glasses, automotive AR HUD, LiDAR, and optical communication applications. ​ 33 Table of Contents We provide a rich products family for customers to choose for different applications, as each product has its own most important parameters to select and Himax Display provides choices to customers. 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●Weight : 0.98 grams●Volume: 0.5 c.c.●Resolution: 1024x1024●Brightness: 400,000 nits●Power consumption : 300 mW ​ ​ ​ 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 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 PMIC have gradually become the mainstream solutions. Independent PGOP ICs have been gradually being phased out. Besides, Himax also provides power management solutions for OLED notebooks. 34 Table of Contents Power Management ICs A power management IC integrates several power components to fulfill system power requirements. It may include step-up or step-down pulse width modulation, or PWM, DC-to-DC converters, low-dropout regulators, or LDO regulators, voltage detectors, operational amplifiers, p-gamma OP, level shifters, and/or other components. For panel module applications, a power management IC provides a reliable and precise voltage for source drivers, gate drivers, timing controllers, and panel cells. 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. 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 TVs and Monitors ​ ●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●14ch programmable gamma voltage with operational amplifier●Programmable gamma buffer DVR and VCOM buffer●10-bit Gamma DAC resolution●built in UVLO, UVP, OVP, SCP and OTP protection ​ 35 Table of Contents Level shifter TFT-LCD panel manufacturers have developed panel designs to reduce the usage of display drivers, like gateless designs, which integrate the gate driver function onto the glass but needed level shifter. All level shifter channels feature the same input circuitry and are compatible with the standard logic-level signals generated by timing controllers in typical applications. The level shifter converts the timing-controller (TCON) logic-level signals to the high-level signals needed by the GOA (gate on array) display. 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 10- 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 ​ Mini LED Backlight Driver Mini LED backlight driver ICs play a critical role in controlling thousands or even tens of thousands of mini-LEDs within backlight system. Their core function is local dimming, enabling precise brightness control of individual zones to deliver high contrast, high brightness, wide color gamut, and energy saving. These driver ICs convert processor signals into current outputs to precisely regulate LED emission. They support high scanning rates, built-in MOSFETs, multi-channel operation, PWM dimming, and fault and error detection. ​ Product ​ ​ ​ Features Automotive local diming mini-LED backlight driver ​ ●16ch direct drive driver●4x48ch scan drive driver with internal 50mO scan FET●LED cascade voltage up to 24V●12/16-bit PWM diming●7-bit Dot Correction●Support Serial Peripheral Interface (SPI)●CRC/Communication loss●LED open & short protection ​ 36 Table of Contents CMOS Image Sensor Products The CMOS image sensor products are developed by our subsidiary, Himax Imaging. The products were designed firstly for camera-equipped mobile devices, such as mobile phones, tablets and notebook computers, with a focus on low light image and video quality. Although it seems relatively challenging for us to gain significant market share in conventional RGB camera, we do think there are various interesting and different applications in imaging. Based on the technologies and IP we developed, on top of legacy products for laptop and multimedia we have been supplying, our product lines have been expanded to cover three domains: ultralow power computer vision- Always-On Sensor (“AoS”), Near Infrared (“NIR”) sensor, and big pixel BSI sensors in automotive and surveillance. 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. In May 2024, we announced a strategic investment in Obsidian Sensors, Inc. ("Obsidian"), a San Diego-based thermal imaging sensor solution manufacturer. The investment was motivated by the potential of Obsidian’s proprietary and revolutionary high-resolution thermal sensors to establish a market position through low-cost, high-volume production capabilities. The investment positions us at the forefront of machine vision AI applications, delivering high effectiveness particularly in harsh environments and completely dark scenarios. In addition, through several strategic investments, including those in thermal imaging sensing technology, Himax has strengthened its sensor portfolio and expanded its technological capabilities. Because thermal sensing does not capture personally identifiable visual data, it helps address privacy concerns. Together, these capabilities enable Himax to deliver highly integrated solutions across multiple domains. In specific domains, such as battery-powered surveillance cameras, doorbell cameras, and door-lock applications, customers require not just an ultralow power sensor for sensing or pre-rolling functions, but also high-resolution video for end-users after an event occurs. Himax Imaging addresses these needs by providing a 1/3” 4MP sensor with a 1:1 aspect ratio. This sensor features a 2048x2048 resolution tailored for doorbell and door-lock cameras, delivering a broad Field of View (FOV) in both horizontal and vertical directions. This capability allows users to observe a visitor's entire body, even when they stand very close to the camera. Himax Imaging can offer a variety of these 2-in-1 sensors, combining high-resolution video capabilities with low-resolution ultralow power imaging for the surveillance market. 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​ 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 < 1mW @ 2fps and motion detection●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 ​ ​ ​ 37 Table of Contents Product ​ ​ ​ Features 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 Ultralow 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 <1mW for qqHD 3fps for human detection application●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​ 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​ 38 Table of Contents Product ​ ​ ​ Features 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. 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 various applications. 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 a wide array of applications, including 3D face recognition, 3D sensing, 3D reconstruction, gesture control and more. Notably, Himax is a pioneer in high-precision diffraction optics technology with over 15 years of experience, having worked on very different designs over a variety of applications with some of the world’s most heavyweight tech names. With the innovative process and specific structure, our wafer level optics products provide small form factor and compact module size to be easily integrated into consumer products. The diffraction optics technology is now well adopted in 3D sensing, AR/VR devices, holographic display, automotive, biomedical inspection, optical communication, etc. We are seeing that DOE plays an even more decisive role for the next generation optical technology in light of its high-precision and lightweight characteristics. In June 2024, Himax, in partnership with FOCI, a world leader in silicon photonics connector, unveiled an industry-leading co-packaged optics (CPO) technology, leveraging Himax WLO technology. This innovation integrates silicon photonic chips and optical connectors within MCM, replacing traditional metal wire transmission with high-speed optical communication. CPO technology significantly enhances bandwidth, boosts data transmission rates, reduces signal loss and latency, lowers power consumption, and significantly minimizes the size and cost of MCM. Our WLO technology is also adapted to form microstructures such as lens array, DOE and lenticular lenses for advanced applications in digital and computational imaging fields. These technologies stand in a unique position to integral optical design, semiconductor manufacturing process, and compact packaging service, which are rarely covered by one single company. Deeply rooted in core wafer level optics technologies, we provide highly customized optical solutions and high-volume manufacturing to many Tier1 customers such as structured lighted and ToF 3D sensing on AR/VR gadgets, automotive, biomedical devices and many other AIoT applications. We also see a rise in engineering collaborations with global technology leaders who are utilizing our WLO expertise to make advanced waveguides for AR glasses. 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. We continued our shipment to this anchor customer for their legacy product and continue making progress on R&D projects with customers for AR/VR gadgets, automotive, biomedical devices and others, targeting their future generation products centered around our exceptional design know-how and mass production expertise in WLO technology. One illustration is our WLO technology being deployed by one VR player to empower 3D perception sensing for precise controller-free gesture recognition. We initiated volume production starting in second quarter of 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) ​ ​ ​ FAU (Fiber Array Unit) in CPO ​ ●Collaborated with FOCI to offer FAU, enabling silicon photonic-to-fiber connections for high-speed optical links, replacing metal wire transmission to enhance bandwidth, boost data rates, reduce signal loss, latency, energy use, and MCM module size and cost●WLO offers nano-scale precision optical characteristics and provides precise optical coupling capability ​ 3D Sensing Business 3D sensing technology has a wide range of applications. We have developed a comprehensive 3D structured light sensing solution to explore business opportunities across various industries. Some applications even incorporate AI algorithms, such as facial recognition, eye tracking, and gesture tracking. By 2025, we have successfully mass-produced solutions for access control, logistics volume measurement, agricultural production, and glasses-free 3D displays, including education, healthcare, consumer electronics, and even 3D HUDs. Our structured light module, combined with facial recognition algorithms, has even passed the certification of the Bank Card Test Center in mainland China, providing secure financial transactions. To further enhance our competitiveness in the field of comprehensive 3D sensing solutions, we have developed a second-generation deep AI chip and are collaborating with companies possessing industry-leading algorithm technologies to provide customers with 3D sensing solutions featuring edge computing, significantly improving response speed. 40 Table of Contents 3D sensing technology is applicable across numerous use cases. Himax has developed a comprehensive structured light–based 3D sensing solution to support diverse industrial and commercial applications. Our 3D sensing technology has already been adopted in a broad set of use cases, including access control, logistics volume measurement, agricultural automation, glasses-free 3D displays for education, healthcare, and consumer electronics, as well as 3D head-up displays (HUDs). Notably, our structured light module, combined with facial recognition algorithms, has received certification from the Bank Card Test Center (BCTC) in China, enabling secure financial transaction applications. Meanwhile, to further enhance our competitiveness in the market, we have developed a second-generation AI chip and are collaborating with companies that possess industry-leading algorithm expertise. Together, we provide customers with edge-computing-enabled 3D sensing solutions that significantly reduce latency and improve system responsiveness. In addition to the 3D sensing total solutions, we also offer key components with iterative upgrades, including a second-generation 3D decoding chip and a 3D vision processor that support both structured light and indirect Time-of-Flight (iToF) technologies. This new-generation chip integrates support for RGB sensors, USB 3.0, and an embedded NPU to accelerate on-device processing. It also enables RGBD data output for object recognition and spatial modeling, supporting future applications in humanoid and industrial robotics. The built-in NPU also supports algorithm implementation for low-latency eye tracking and gesture recognition, while significantly reducing crosstalk in glasses-free 3D displays, contributing to the broader adoption of 3D display technologies. Our critical 3D sensing Technologies includes the following: Wafer Level Optics Products WLO is one of the key technologies enabling 3D sensing, AR goggle devices, and many other applications. Levering on our exceptional design know-how and mass production experience in WLO technology, we are able to produce the world’s most compact optics required for 3D sensing, while also achieving superior performance and lower costs. ASIC One of the critical elements of our 3D sensing total solution is an ASIC for 3D depth map generation. We are able to develop the ASIC thanks to our unique in-house capability in developing video ASICs for customers. Equipped with the ASIC, our 3D sensing total solution can substantially reduce the power consumed while processing 3D sensing, enhance personal data security, accelerate the 3D depth map generation, and provide superior depth data output that matches with our optical component. We consider this unique capability as our competitive advantage. It has been and will continue to be one of our key drivers in the success of our 3D sensing total solution. Active Alignment With much experience in optical assembly for AR and VR devices, our factory has developed a system to do active alignment for tiny components. From the incoming quality check, assembly process, and testing, all steps are monitored and checked. The precision assembly capability gives us a very good foundation to do the optical assembly for DOE, WLO, and laser. Laser Driver Based on our expertise in projector, optics, and driver, we have designed a special Glass Broken Detection (“GBD”) mechanism on our projector. We also have a proprietary laser driver design that detect the connection of the GBD on the projector. 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 < 0.5% within the entire operation range of 30cm-100cm●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-2 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 ​ ​ ​ HV-3 3D Decoder ASIC ​ ●Himax 3D Depth Structured Light Processor with high depth accuracy●Support up to FHD resolution depth map for different applications●2D & 3D auto-exposure control for projector and sensor●Frame rate conversion for different application/capability of SOC●Support RGB ISP up to 8MP resolution●Support RGB-D aligned format direct output●Support 512Mb DDR3 internal memory●Embedded Security Engine●Power Management Engine for power shutdown●MIPI CSI-2 / DPHY interface●USB 3.2 Gen1 output interface●Support Arm Ethos-U55 processor and performance up to 204.8GOPs ​ ​ ​ 42 Table of Contents HE-2 3D Decoder ASIC ​ ●Himax 3D Depth Time-of Flight Processor with high depth accuracy●Support up to SVGA resolution depth map with high frame rate 120 FPS capability●Support ROI based 2D & 3D auto-exposure control●Frame rate conversion for different application/capability of SOC●Support RGB ISP up to 8MP resolution●Support RGB-D aligned format direct output●Support 512Mb DDR3 internal memory●Embedded Security Engine●Power Management Engine for power shutdown●MIPI CSI-2 / DPHY interface●USB 3.2 Gen1 output interface●Support Arm Ethos-U55 processor and performance up to 204.8GOPs ​ WiseEye Ultralow Power AI Sensing Demand for always-on, battery-powered smart devices with AI sensing continues to grow rapidly. We remain committed to strengthening our WiseEye product roadmap to sustain our leadership by making AI more accessible in everyday applications. Himax’s WiseEye solution brings intelligent capabilities to endpoint devices while consuming only a few mW of power. It has already been adopted across a wide range of applications, including notebooks, home appliances, smart home, smart retail, utility meters, automotive systems, smart door locks, surveillance cameras, and many others. In notebooks, WiseEye’s human presence detection is seeing expanding adoption among leading global brands, driven by its ultralow power consumption, instant responsiveness, and privacy-centric design, well aligned with the industry’s shift toward always-aware, AI-driven PCs. Building on this momentum, we are developing additional feature enhancements jointly with our customers to address more complex real-world scenarios while preserving exceptional power efficiency and improving user convenience. We are also making solid progress in smart door lock applications. In 2023, we partnered with China’s leading smart door lock company, DESMAN, to introduce the world’s first smart door lock featuring uninterrupted 24/7 real-time sentry monitoring while significantly extending battery life. Building on this milestone, we are expanding globally through collaborations with other leading door lock manufacturers to integrate advanced AI features such as parcel recognition, anti-pinch protection, and palm vein biometric authentication, further broadening the application scope and enhancing product differentiation. Concurrently, progress also been made in the WiseEye Module business. Himax WiseEye modules incorporate Himax's low-power CMOS image sensors, AI processor, and versatile AI models from either in-house or third-party partners. Meticulously engineered in compact form factors with high integration and plug-and-play capability, the modules feature user-programmable, pre-loaded AI models that enable seamless system integration, lowering development barriers and reducing overall AI deployment costs. This initiative is particularly well suited for early-stage market adoption and rapid customer engagement. WiseEye modules are seeing expanding adoption across diverse applications, including smart home appliances and various surveillance systems. Notably, our PalmVein module has built a strong design-in pipeline across multiple industries, spanning smart access control, workforce management, smart door locks, and computer monitors. In addition, WiseEye is gaining traction in the AR and AI glasses segment, a fast-emerging category characterized by exceptionally demanding power requirements. WiseEye delivers fast responsiveness for a wide range of AI functions while maintaining exceptional power efficiency. It enables intelligent, context-aware vision sensing in next-generation wearable and smart glasses through both outward- and inward-facing capabilities. WiseEye is gaining strong traction in smart glasses, with a growing number of design-in engagements underway among global tech names, solution platform providers, and smart glasses specialists. ​ 43 Table of Contents The following table sets forth the features of our ultralow power WiseEye ultralow power AI sensing total solutions: ​ ​ ​ Product ​ ​ ​ Features WiseEye 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. Uniquely designed for ultralow power Computer Vision applications with always on scanning as low as 100uW●WiseEye AI processor is a uniquely designed ultralow power computer vision processing silicon, targeting always on applications with a sub 1mW capabilities. 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) ​ 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. WiseEye2 AI Processor ​ ●dual Arm Cortex-M55 CPU cores and an Arm Ethos-U55 micro NPU core are integrated to optimize the power consumption across various workloads●memory: Up to 2MB SRAM, 512KB TCM●supports weight compression to significantly reduce model size ●multi-layer power management architecture●embedded DC/DC converter and LDO●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: MIPI CSI-2 RX/TX, 1/4/8-bit CPI, PDM/I2S/MIPI SoundWire, SPI/UART/PWM/GPIO/I2C/I3C, SD/SDIO●Also support image pre-rolling feature for better security offering. 44 Table of Contents WiseEye Module ​ ●embedded WiseEye1 or WiseEye2 AI processors●support HM01B0 (320x240) and HM0360 (640x480) CMOS image sensors●small form factor (12.5mm x 17.0mm and 20.5mm*21.5mm) ●plug-and-play design which support various types of connectors, such as ZIF FPC 24pin and 45-pin golden finger (model dependent)●rich sets of peripherals (UART/I2C/I2S/PDM/SPI/GPIO/MIPI) and JTAG for debug (model dependent)●provide SDK, development tool and technical documentations●support various pre-trained pre-loaded AI models ​ Core Technologies and Know-How Driving System Technology. 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. Our engineers have in-depth knowledge of the driving system technology, which is the architecture for the interaction between the source driver, gate driver, timing controller and power systems as well as other passive components. We believe that our understanding of the entire driving system has strengthened our design capabilities. 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. Unlike most other semiconductors, TFT-LCD display drivers require a high output voltage of 3.3 to 50 volts. We have developed circuit design technologies using a high-voltage CMOS process that enables us to produce high-yield, reliable and compact drivers for high-volume applications. Moreover, our technologies enable us to keep the driving voltage at very high uniformity, which can be difficult to achieve when using standard CMOS process technology. High-Bandwidth Interfaces. In addition to high-voltage circuit design, TFT-LCD display drivers require high bandwidth transmission for video signals. We have applied several high-speed interfaces, including transistor-transistor logic (“TTL”), Reduced Swing Differential Signaling (“RSDS”), mini low-voltage differential signaling (“LVDS”), dual-edge TTL (“DETTL”), turbo Reduced Swing Differential Signaling (“RSDS”), Mobile Industry Processor Interface (“MIPI”) and other customized interfaces in our display drivers. Moreover, we are developing additional driver interfaces for special applications with optimized speed, lower EMI and higher system stability. Die Shrink and Low Power Technologies. Our engineers are highly skilled in employing their knowledge of driving technology and high-voltage CMOS circuit design to shrink the die size of our display drivers while leveraging their understanding of driving technology and panel characteristics to design display drivers with low power consumption. Die size is an important consideration for applications with size constraints. Smaller die size also reduces the cost of the chip. Lower power consumption is important for many portable devices such as notebook computers, smartphone, tablet and consumer electronics products. WiseEye Ultralow Power AI Sensing Technologies. These technologies are composed by an AoS sensor, an edge AI ASIC processor and computer-vision AI algorithm, all operated in ultralow power mode. Our industrial first AoS CMOS image sensor features ultralow power and low latency back-illuminated solution for always on, intelligent visual sensing applications. With Himax’s exceptional low power know-how and ASIC implementation technologies, our WiseEye AI image processor featured different power domain and mode management schemes, together with advanced image processing hardwired accelerators to construct different operating modes in balancing processor performance and power consumptions. The seamless and proprietary interface between our AoS sensor and AI processor ensure the efficient and fast-response sensor data transmission and wake-up mechanism operating in ultralow power mode. The computer-vision AI algorithm, which benefits from high performance and low power AI processor and image data from sensor, can therefore enable AI features such as powerful human detection, occupancy detection and motion classification for various application needs. 45 Table of Contents LCoS Microdisplay Technologies. Compared to other microdisplay technologies, LCoS microdisplay offers smaller form factor, higher brightness, and less power consumption. Himax Display has own proficient engineering team to develop patented industry-only non-captive LCoS, front-lit waveguide, and module design, along with an in-house ISO certified manufacture line, all of which positions us at the forefronts of leading AR glasses and AR-HUD markets. The latest development of Front-Lit LCoS enables an ultra-compact and extremely power-efficient optical engine by consolidating and integrating LED illumination system into the micro display module itself and makes the patented technology ideal for AR headsets. Furthermore, Himax Display provided phase modulation LCoS 2.0 technologies to offer high-efficient, low power and multi-focal plane displaying features to fit for holographic displaying needs in numerous leading applications. 3D Technologies. Several technologies in Himax are integrated together to form our 3D solution. First, wafer level nanoimprinted technology is used to design and manufacture DOE and Waveguide. Then, our in-house capability on semiconductors enables us to design IC that particularly matches our optical component. Our expertise in precision assembly in optics also helps us to provide a more complete solution to our customers. 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. We may sell our products through agents or distributors for certain products or in certain regions. As of December 31, 2025, we sold our products to around 300 customers. Our ten largest customers together accounted for approximately 74.1%, 73.6% and 71.3% of our revenues in 2023, 2024 and 2025, respectively. In 2023, 2024 and 2025, our two largest customers accounted for 10% or more of our net revenue: customer A and its affiliates accounted for 28.7%, 26.4% and 24.0% of our revenues, respectively; and customer C accounted for 11.0%, 8.3% and 7.8%, respectively. Certain of our customers provide us with a long-term (twelve-month) forecast plus three-month rolling non-binding forecasts and confirm orders about one month ahead of scheduled delivery. In general, purchase orders are not cancellable by either party, although from time to time we and our customers have agreed to amend the terms of such orders. Sales and Marketing We focus our sales and marketing strategy on establishing business and technology relationships principally with Panel Manufacturers, using LTPS and a-Si TFT-LCD, and OLED technologies, mobile display module and mobile device manufacturers for smartphone, tablet and automotive, and camera module houses in order to work closely with them on future semiconductor solutions that align with their product road maps. 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. We also market our products directly to TV, monitor, notebook and mobile, tablet and automotive device manufacturers so that our products can be qualified for their specifications and designed into their products. Furthermore, we extend our business development with system and ODM companies by using strategic ASIC business model to not only develop ASIC product based on customer specification but also jointly research and develop new technologies to meet customers’ future product demand. Additionally, we form strategic partnership with Tier 1 customers for our LCoS microdisplays, 3D sensing and WiseEye ultralow power AI sensing to penetrate into the emerging market. We believe we need close alliance with our customers to build up ecosystem for new applications. ​ 46 Table of Contents We primarily sell our products through our direct sales teams located in Taiwan, China, South Korea. We also have dedicated sales teams for certain of our most important current or prospective customers. We have offices in Tainan, Hsinchu, Taipei, Taiwan; and Shenzen and Suzhou, China. 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; Asan-si and Bundang-gu, South Korea and Irvine and San Jose, California, Minneapolis, Minnesota and Detroit, Michigan, USA, all in close proximity to our customers. For certain products or regions, we may sell our products through agents or distributors. Our sales and marketing team possesses a high level of technical expertise and industry knowledge used to support a lengthy and complex sales process. This includes a highly trained team of product managers and field applications engineers. Our team is equipped with extensive strategic marketing experience and a strong capability to identify market trends. We also provide technical support and assistance to potential and existing customers in system/SoC architecture, designing, testing and qualifying display modules, camera modules and end application systems that incorporate our products and ASICs. We believe that the depth and quality of this design support are key to improving customers’ time-to-market and maintaining a high level of customer satisfaction. Manufacturing We operate primarily in a fabless business model that utilizes substantially third-party foundry and assembly and testing capabilities. We leverage our experience and engineering expertise to design high-performance semiconductors and rely on semiconductor manufacturing service providers for wafer fabrication, gold bumping, assembly and testing. We also rely largely on third-party suppliers of processed tape used in TAB packaging. We engage foundries with high-voltage CMOS process technology for our display drivers and engage assembly and testing houses that specialize in TAB and COG packages, thereby taking advantage of the economies of scale and the specialization of such semiconductor manufacturing service providers. Our primarily fabless model enables us to capture certain financial and operational benefits, including reduced manufacturing personnel, capital expenditures, fixed assets and fixed costs. It also gives us the flexibility to use the technology and service providers that are the most suitable for any given product. Despite our reliance on outsourcing for CP testing, we have made investments in internal capabilities for test program development, engineering testing, debugging capability and manufacturing support since 2022. We operate a fab under Himax Display primarily for performing manufacturing processes for our LCoS microdisplays. Moreover, we have established an in-house WLO facility under Himax Taiwan for the key process of our wafer level optics products, which started small-scale shipments from December 2009 and commenced mass shipment to anchor customer from 2017 onwards. We began construction of our new building, Fab 2, in March 2017, located nearby the current headquarters to house additional WLO capacity, the new active alignment equipment needed for our 3D sensing business and to provide extra office space. The construction of Fab 2 was completed in the first half of 2018. 47 Table of Contents Manufacturing Stages The diagram below sets forth the various stages in manufacturing display drivers according to the two different types of assembly utilized: TAB or COG. The assembly type depends primarily on the application and design of the panel and is determined by our customers. ​ Wafer Fabrication: Based on our design, the foundry provides us with fabricated wafers. Each fabricated wafer contains many chips, each known as a die. Gold Bumping: After the wafers are fabricated, they are delivered to gold bumping houses where gold bumps are plated on each wafer. The gold bumping process uses thin film metal deposition, photolithography and electrical plating technologies. 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. Chip Probe Testing: Each die is electrically tested, or probed, for defects. Dies that fail this test are discarded. Assembly and Testing: Our display drivers use two types of assembly technology: TAB or COG. Display drivers for large-sized applications typically require TAB package types and to a lesser extent COG package types, whereas display drivers for smartphone, tablet and consumer electronics products typically require COG package types. 48 Table of Contents TAB Assembly We use two types of TAB technologies: TCP and COF. TCP and COF packages are both made of processed tape that is typically 35mm or 48mm wide, plated with copper foil and has a circuit formed within it. TCP and COF packages differ, however, in terms of their chip connections. With TCP packages, a hole is punched through the processed tape in the area of the chip, which is connected to a flying lead made of copper. By contrast, with COF packages, the lead is mounted directly on the processed tape and there is no flying lead. In recent years, COF packages have become predominantly used in TAB technology. ● Inner-Lead Bonding: The TCP and COF assembly process involves grinding the bumped wafers into their required thickness and cutting the wafers into individual dies, or chips. An inner lead bonder machine connects the chip to the printed circuit processed tape and the package is sealed with resin at high temperatures. ● Final Testing: The assembled display drivers are tested to ensure that they meet performance specifications. Testing takes place on specialized equipment using software customized for each product. COG Assembly COG assembly connects display drivers directly to LCD panels without the need for processed tape. COG assembly involves grinding the tested wafers into their required thickness and cutting the wafers into individual dies, or chips. Each individual die is picked and placed into a chip tray and is then visually or auto-inspected for defects. The dies are packed within a tray in an aluminum bag after completion of the inspection process. Quality Assurance We maintain a comprehensive quality assurance system. Using a variety of methods, from conducting rigorous simulations during the circuit design process to evaluating supplier performance at various stages of our products’ manufacturing process, we seek to bring about improvements and achieve customer satisfaction. In addition to monitoring customer satisfaction through regular reviews, we implement extensive supplier quality controls so that the products we outsource achieve our high standards. Prior to engaging a third party as our supplier, we perform a series of audits on their operations, and upon engagement, we hold frequent quality assurance meetings with our suppliers to evaluate such factors as product quality, production costs, technological sophistication and timely delivery. 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. In addition, in March 2007, we received IECQ QC 080000 certification, which was renewed in February 2025 and will expire in March 2028. Environmental Management System and Safety and Health Management System Himax follows closely the global environmental trends, including energy saving and waste reduction, in its daily operations. The Company is certified in accordance with ISO 14001, ISO 45001 and ISO 14064. Himax is a leader in its sector when it comes to the environment and safety, operating under measures much more stringent than domestic regulations. The Company aims to grow sustainably, delivering economic, social and environmental benefits with its healthy employees. Himax has also been tirelessly reducing impacts to the environment and improving safety in its operations, specifically targeting product design and waste handling. 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. 49 Table of Contents Access to semiconductor manufacturing service providers is critical as display drivers require high-voltage CMOS process technology and specialized assembly and testing services, all of which are different from industry standards. We have obtained our foundry services from TSMC, UMC, Vanguard, Macronix, Globalfoundries Singapore, PSMC, Nexchip and SKHYSI in the past few years. These are among a select number of semiconductor manufacturers that provide high-voltage CMOS process technology required for manufacturing display drivers. We engage assembly and testing houses that specialize in TAB and COG packages such as Chipbond, Chipmore International trading company Ltd., ChipMOS Technologies Inc. and King Yuan Electronics Co., Ltd, etc. We plan to strengthen our relationships with our existing semiconductor manufacturing service providers and diversify our network of such service providers in order to ensure access to sufficient cost-competitive and high-quality manufacturing capacity. We are selective in our choice of semiconductor manufacturing service providers. It takes a substantial amount of time to qualify alternative foundries, gold bumping, assembly and testing houses for production. As a result, we expect that we will continue to rely on a limited number of semiconductor manufacturing service providers for a substantial portion of our manufacturing requirements in the near future. The table below sets forth (in alphabetical order) our principal semiconductor manufacturing service providers and suppliers: ​ ​ Wafer Fabrication ​ ​ ​ Gold Bumping Globalfoundries Singapore Pte., Ltd. ​ Chipbond Technology Corporation Macronix International Co., Ltd. ​ Chipmore International Trading Company Ltd. Nexchip Semiconductor Corporation ​ ChipMOS Technologies Inc. Powerchip Semiconductor Manufacturing Corp. ​ LB Semicon, Inc. SK hynix system ic (Wuxi) ​ Union Semiconductor Co., Ltd. Semiconductor Manufacturing International (Shanghai) Corporation ​ Union Semiconductor (Hefei) Co., Ltd. Taiwan Semiconductor Manufacturing Company Limited ​ Jiangsu nepes Semiconductor Co., Ltd. United Microelectronics Corporation ​ Vanguard International Semiconductor Corporation ​ ​ ​ Processed Tape for TAB Packaging ​ ​ ​ Assembly and Testing Chipbond Technology Corporation ​ Ardentec Corporation Hefei Chipfilm Materials Technology Co., Ltd. ​ Advanced Semiconductor Engineering Inc. JMC Electronics Co., Ltd. ​ Chipbond Technology Corporation LG Innotek Co., Ltd. ​ Chipmore International Trading Company Ltd. Stemco., Ltd. ​ ChipMOS Technologies Inc. ​ Global Testing Corporation ​ Greatek Electronics Inc. ​ Huatian Technology Electronics Co., Ltd. ​ Jiangsu Changjiang Electronics Technology Co., Ltd. ​ King Yuan Electronics Co., Ltd. ​ Micro Silicon Electronics Corp. ​ Taiwan IC Packaging Corporation ​ LB-Semicon Co., Ltd. ​ Union Semiconductor Co., Ltd. ​ ​ Jiangsu nepes Semiconductor Co., Ltd. ​ ​ 50 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. ​ ​ Union Semiconductor (Hefei) Co., Ltd. ​ ​ YoungTek Electronics Corp. ​ ​ Jiangsu nepes Semiconductor Co., Ltd. ​ ​ ​ Intellectual Property As of February 28, 2026, we held a total of 2,576 patents, including 1,036 in Taiwan, 894 in the United States, 514 in China, and 132 in other countries. The expiration dates of our patents range from 2026 to 2045. We also have a total of 44 pending patent applications in Taiwan, 114 in the United States and 185 in other jurisdictions, including the PRC, Japan, Korea, Israel and Europe. 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 and Japan, “CMVT” as trademarks in Taiwan and China, “Liqxtal” as trademark in Taiwan and United States, “NEWKEN and logo” as trademark in Taiwan, as well as “WISEEYE” as trademark in Taiwan, Israel and the United States. Competition The market characteristics for our products are, in general, intensely competitive, characterized by continuous technological change, evolving industry standards, and declining average selling prices. 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. 51 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 also face competition from integrated device manufacturers, such as Rohm Co., Ltd. Some of our competitors are affiliated or have established cross relationships with other Panel Manufacturers. Some have longer operating histories, or greater brand recognition, or significantly greater financial, manufacturing, technological, sales and marketing, human and other resources than we do. 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. We also compete with alternative microdisplay technology providers such as Texas Instruments with DLP, Sony with micro OLED and JBD with micro LED. For power ICs, we face competition from Taiwan companies including Richtek Technology Corp., Global Mixed-mode Technology Inc., Novatek Microelectronics Corp., Fitipower Integrated Technology 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. For wafer level optics products, we face competition primarily from Heptagon that was acquired by ams AG and certain new optical design houses from China, such as Angstrong Tech, Yuguang Science and Technology Development Co. For 3D sensing, Himax is one of the few companies that can provide the one-stop solution though there are more companies attempting to jump into the game. ams AG and Orbbec will be the main competitors we face in the worldwide. For WiseEye ultralow power AI sensing, the main competition is Qualcomm with its “Glance” device. Few additional small size companies develop AI base edge devises, such as Lattice, Eta Computing, Nuvoton, Altek, etc. However, Himax is the only vendor who can offer a truly in-house vertically integrated solution comprise with all three building blocks required by customers: CMOS sensor, purposely designed MCU and the AI algorithm. Insurance We maintain insurance policies on our buildings, equipment and inventories covering property damage and damage due to, among other events, fires, typhoons, earthquakes and floods. We maintain these insurance policies on our facilities and on transit of inventories. Additionally, we maintain director and officer liability insurance. 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. Additionally, Himax Taiwan maintains a CP tester facility and a wafer level optics facility and Himax Display maintains a facility for our LCoS products. 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 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. 52 Table of Contents 4.C. Organizational Structure The following chart sets forth our corporate structure and ownership interest in each of our principal operating subsidiaries as of February 28, 2026. ​ ​ The following table sets forth summary information for our subsidiaries as of February 28, 2026. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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. IC design and sales South Korea 100.0 % Himax Technologies (Samoa), Inc. Investments Samoa 100.0 %(1) Himax Technologies (Suzhou) Co., Ltd. Sales and technical support PRC 100.0 %(2) Himax Technologies (Shenzhen) Co., Ltd. Sales and technical support PRC 100.0 %(2) Himax Display, Inc. 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 99.9 %(1) Himax Imaging, Inc. Investments Cayman Islands 100.0 % Himax Imaging, Ltd. IC design and sales ROC 99.5 %(1) Himax Imaging Corp. IC design California, USA 99.5 %(4) Harvest Investment Limited Investments ROC 100.0 %(1) Himax Technologies Japan Ltd. Sales Japan 100.0 % Himax Semiconductor (Hong Kong) Limited Investments Hong Kong 100.0 % Liqxtal Technology Inc. Imaging and optical solutions provider ROC 59.5 %(1) New Ken Technologies Co., Ltd. ​ Imaging and optical solutions provider ​ ROC ​ 59.5 %(5) 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 81.4 %(1) Viewsil Microelectronics (Shanghai) Limited ​ IC design and sales ​ PRC ​ 100.0 % Viewsil Technology Limited ​ IC sales ​ British Virgin Islands ​ 100.0 %(6) Solvanta Investment Limited ​ Investments ​ ROC ​ 100.0 %(1) Solvanta Energy Limited ​ Renewable-energy based electricity distribution ​ ROC ​ 100.0 %(7) (1) Indirectly, through our 100.0% ownership of Himax Technologies Limited. 53 Table of Contents (2) Indirectly, through our 100.0% ownership of Himax Technologies (Samoa), Inc. (3) Indirectly, through our 92.0% ownership of Himax Display, Inc. (4) Indirectly, through our 99.5% ownership of Himax Imaging, Ltd. (5) Indirectly, through our 59.5% ownership of Liqxtal Technology Inc. (6) Indirectly, through our 100.0% ownership of Viewsil Microelectronics (Shanghai) Limited. (7) Indirectly, through our 100.0% ownership of Solvanta Investment 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. We began construction of our new building, Fab 2, in March 2017, located nearby the current headquarters. The newly completed building, located at a 42,619 square meter facility, houses additional WLO capacity, the new active alignment equipment needed for our 3D sensing business and provides extra office space. The facilities house our research and development, engineering, sales and marketing, operations and general administrative staff. We also lease office space in Taipei and Hsinchu, Taiwan; Suzhou, Shenzhen, Foshan, Beijing, Shanghai, Ningbo, Wuhan, Hefei, Xiamen, Chongqing, Fuqing, China; Asan-si and Bundang-gu, South Korea; and Irvine and San Jose, California and Minneapolis, Minnesota, USA. 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. 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. To build up test program development, engineering testing, debugging capability and manufacturing support, we have established under Himax Taiwan an in-house CP test facility from 2022. ​