Guo Ming-chi: Himax (HIMX.US) is set to benefit significantly from TSMC's advanced packaging technology, COUPE.

Zhitong Finance learned that TSMC's (TSM.US) artificial intelligence and silicon photonics plan is a "key" beneficiary of Q Tech (HIMX.US), according to analyst Ming-Chi Kuo of Tianfeng International Securities on Wednesday. Kuo wrote: "Thanks to COUPE (TSMC's silicon photonics plan), Q Tech is ready to expand strongly in the next few years. I estimate that its revenue will be about US$1.16bn, US$1.42bn and US$2.4bn in 2026-2028 (market expects US$1.11bn in 2026), with EPS of about US$1.00, US$1.60 and US$3.40 (market expects US$0.80 in 2026)."Kuo explained that the first-generation COUPE has been fully developed and has been given the "highest priority" in TSMC's development technology. He added that mass production verification is underway, and the second-generation mass production verification is expected to start in the first half of 2026, and Q Tech is expected to benefit as it is the exclusive supplier of two generations of micro-lens arrays.There may be a contradiction in the timeline of TSMC and Nvidia (NVDA.US) for silicon photonics - TSMC believes that the mass production of silicon photonics may take about 1-1.5 years, while Nvidia believes it may take several years - Kuo added that if mass production is on schedule, Nvidia's Rubin series GPU may use COUPE.Moreover, Kuo pointed out that AMD (AMD.US) may be the first TSMC customer to adopt COUPE, continuing its "trend of actively using TSMC's advanced technologies."