Notre Dame De Namur University
Technology, as an industry, hosts some of the biggest corporations in capitalism today, in respects to their influence on global markets and the astronomical levels of revenue they gross each year. All of these giants, Google, Apple, and Microsoft to name a few, need resources from all over the world to operate smoothly, and one of the companies providing this lower level support in the chain of technological product production is Himax Technologies. Himax Technologies is a fabless semiconductor company based out of Tainan City, Taiwan. With the past fifteen years filled with monumental advancements in software and hardware alone, the semiconductor business has become an industry in itself.
With a small-cap market of 512 million dollars and a gross margin profitability of 22.4%, Himax Technologies have come a long way since their incorporation in 2007 (HIMX, 2013). The company was founded on July 1, 2004 by Dr. Biing-Seng Wu (Himax, 2013). With regards to geographical location, Himax has offices around the world, with a design center in California and both sales and support offices in China, Taiwan, and the United States collectively. Himax’s earnings have slipped since their inception, with total income for the 2007 fiscal year reaching 113 billion, and only 9.5 billion for the 2011 fiscal year (HIMX, 2013). The cause for this drop in earnings is primarily due to the huge influx of competition in the semiconductor market as microchips and integrated circuits have advanced since the start of the 21st century. Additionally, some of the technology that they are providing components for is not selling as well as previously forecasted, for example, 3D televisions.
Himax Technologies has multiple functions within the corporation. Although their primary function is the production of components for anything that has a LCD display, the company dips into other areas of electronics, such as components for photography equipment. The company has four subgroups, Himax Display, Imaging, Analogic, and Media solutions. According to the Himax website (2013), their vision is to “Become the world’s leading 3D video and display solution provider”, and with this vision they have some work to do considering that Himax Technologies is one of the smaller companies in the semiconductor market (About Himax). Having a highly specialized nature sets them apart from similar companies in the field, and this also is an element of business that has hurt their past performance. Although they are one of the smaller entities producing semiconductor components, they claim to be the “Market leader of 3D display and video solutions” (Himax, 2013). A few of the top competitors in this field are Maxim Integrated Products Incorporated, boasting a market cap of 8.9 billion dollars with a net income of 350 million dollars. NXP Semiconductors NV is the next largest, with a market cap of 7.34 billion dollars and net income of -184 million dollars (HIMX, 2013).
Himax Technologies’ (2013) mission statement is to “Achieve customers technical and quality targets with on time delivery”, and by this mission it is fairly easy to obtain a handle on what they wish to do in the future (Company Profile). Punctuality is one of the more significant goals in their mission, and like in any sector of business, timeliness is everything in many respects. In regards to their developmental history, there is little to take away from their company website, and this is also in part to their relatively recent incorporation, taking place only 6 years ago. Himax makes components for some of the biggest consumer products today, such as a “Cutting edge low power 3D video processor for the ipad and smartphone”, as well as “High integration 3D SoC for tablets and portable media devices” (Himax, 2013). The company holds over 1500 patents for their semiconductor operations, which...