Key insights
- Himax is the sole microlens array supplier for NVIDIA's Co-Packaged Optics (CPO) using TSMC's COUPE platform. This positions Himax to benefit from the growing demand for CPO in data centers. While Himax has automotive exposure, the CPO business presents a significant growth opportunity, supported by analyst confirmation and recent earnings beat and raised guidance, potentially driving positive sentiment in the semiconductor sector.
This is Himax, they are currently trading at $18.44, with a +131% gain in just 6 months.
This company is important because NVIDIA is using Co-Packaged Optics (CPO). Rather than relying on external transceivers to convert electricity into light, CPO integrates this process directly into the network switch’s housing. By utilizing TSMC’s COUPE platform and micro ring modulators (MRM), this slashes power usage by roughly 3.5x.
The Fiber Array Unit (FAU) serves as the critical physical interface for this system:
- The COUPE engine emits laser data vertically. A prism and microlens array within the FAU must pivot these beams 90 degrees to align with horizontal fibers. Because these optical fibers are thinner than a human hair, the FAU uses a V-groove substrate to lock them into the exact position required for a seamless connection.
Himax manufactures the optical components inside this FAU (microlens arrays + prisms + V-groove substrates) using nanoimprint lithography.
There is also analyst confirmation backing this up. Digitimes, citing Tianfeng Securities analysts, reported that Himax is the sole microlens array supplier for both COUPE Gen 1 and Gen 2.
The risk: this business has a lot of automotive exposure.
Just 2 days they beat and raised guidance.