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HIMX: TFC Outpaces FOCI-Himax Ecosystem in Commercial CPO Ramp
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TFC's scale, vertical integration and NVDA alignment beat FOCI, cutting HIMX's CPO/FAU upside near-term.
Citrini put out a really excellent report, and we agree with most of it. Without a doubt, Citrini is one of the best research firms in the industry. We just have a few thoughts on Himax that we'd like to discuss. If there's anything we've gotten wrong, please don't hesitate to point it out.
Himax has been positioned as a primary beneficiary of FOCI’s expansion into the CPO supply chain, regarding the high-volume supply of FAU. However, industry inflections suggest that FOCI (3363.TT) has been outmaneuvered by TFC (300394.SZ) in terms of commercial execution and tangible market capture. This shift in supply chain leadership compromises the bull case for Himax; its strategic partner, FOCI, has ceded critical first-mover advantage amidst the accelerating wave of CPO commercialization.
Why TFC Surpassed FOCI in the CPO Supply Chain
The shift in market dominance from FOCI to TFC can be attributed to 1) Manufacturing Scale, 2) Vertical Integration, and 3) Ecosystem Alignment.
High-Volume Manufacturing and Cost Leadership
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