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Strong Chinese smartphone demand (IDC estimates Q1 shipments rose 117% Y/Y) will lead...

Strong Chinese smartphone demand (IDC estimates Q1 shipments rose 117% Y/Y) will lead second-tier LCD driver IC vendors to see Q3 shortages, and bigger suppliers such as Himax (HIMX) stand to benefit, says Digitimes. The site also reports driver IC packaging firms such as ChipMOS (IMOS) are seeing higher capacity utilization rates. Himax shares are down 41% from their May 16 high of $8.19, thanks in part to its stock offering (and the potential for another).
Comments (4)
  • Valuable Insights
    , contributor
    Comments (485) | Send Message
     
    The article also notes that Novatek Microelectronics is seeing huge demand - Novatek is a 20%+ customer for $IMOS, and $HIMX is a top-8 customer.
    24 Jun 2013, 05:19 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1013) | Send Message
     
    I am not sure HIMX is a buy yet. Their major shareholder is selling way too many shares. Also the investors that more than doubled the price on the Google Glass news seem to be fickle trend chasing bunch, so I doubt these are the type investors that will stick with the stock through thick and thin.

     

    IMOS looks very good to me. So do a couple of the IC design firms that suffered today from the Apple news: SWKS, OVTI, INVN. They all sell into the Chinese lower priced smartphone market and look very good, after they were beaten down by the usual panty twisting over-reaction from Apple news.
    24 Jun 2013, 05:29 PM Reply Like
  • Caffeine
    , contributor
    Comments (96) | Send Message
     
    Today Cowen also raised IMOS target price to $25 and reiterated it outperform rating. Micron was also upgraded and will probably soon become IMOS largest customer moving from the second largest customer. When the Elpida deal becomes officially done IMOS will most likely announce a major joint venture with micron. What was also mentioned in the digitimes article was IMOS talk about expanding its LCD driver capacity in its facility in China to handle the local demand from Novatek and Himx. Business looks very strong for all of these companies mentioned above.
    24 Jun 2013, 05:35 PM Reply Like
  • NumZie
    , contributor
    Comments (18) | Send Message
     
    But where is $NTE in this game? We keep picking up ugly signals on them, but shouldn't they too benefit?
    25 Jun 2013, 04:09 AM Reply Like
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