Himax To Gain Big As TSMC, Nvidia and AMD Advance Silicon Photonics and COUPE Tech: Analyst

Core Insights - Himax Technologies is identified as a key supplier for Taiwan Semiconductor Manufacturing Co (TSMC) in the development of silicon photonics, specifically the Compact Universal Photonic Engine (COUPE) [1][4] - Revenue projections for Himax indicate significant growth, with estimates of $1.16 billion in 2026, $1.42 billion in 2027, and $2.4 billion in 2028, alongside EPS forecasts of $1.00, $1.60, and $3.40 for the same years [2] - The first generation of COUPE is in mass production validation, while the second generation is expected to begin validation in the first half of 2026 [3][6] Company Developments - Himax is the exclusive supplier of micro-lens arrays for both the first and second generations of COUPE, with a potential second supplier emerging for the third generation [4][6] - Taiwan Semiconductor prioritizes COUPE among its developing technologies, providing multi-year visibility for the project [4] - Nvidia's collaboration with Taiwan Semiconductor on silicon photonics is expected to take several years, with Advanced Micro Devices likely to be the first client to adopt COUPE [5] Market Outlook - If mass production timelines are met, Nvidia's Rubin Ultra could be the first product utilizing COUPE, with Himax remaining the sole micro-lens array supplier for the initial generations [6] - Recent stock performance shows Himax (HIMX) up 5.91% to $10.13, while TSMC (TSM) is up 2.99% [6]