Himax-Optinvent Partner to Create Advanced Smart Glasses - Analyst Blog


Taiwanese chipmaker Himax Technologies, Inc. ( HIMX ) announced that its subsidiary, Himax Display Inc. will team up with Optinvent SA, a leading French producer of disruptive ORA Smart Glasses. The partnership will develop technologically-advanced next-generation augmented reality glasses to address the budding smart glass market.

The two companies have successfully collaborated on several technological initiatives in the past. Through the smart glasses, which are poised to set new standards in image quality and performance, the two companies are hoping to capitalize on the phenomenal growth expected in the niche wearable technology market.

Himax also collaborated with Lumus recently to boost its efforts to develop next generation smart glasses.

The Initiative

Optinvent's patented ORA Smart Glasses feature a "see-through" display that does not impede regular vision. The collaboration will attempt to integrate Himax's advanced microdisplay panel with Optinvent's patented see-through display technology.

Himax's micro-display is a vital element in the display-centric smart glasses model, and works flawlessly with the retinal projection engine in Optinvent's ORA Smart Glasses, resulting in panel performance and power consumption optimization.

The companies expect the new product to be one of the most technologically advanced products in the smart glass market.

Himax's Forte

The company manufactures liquid crystal on silicon (LCOS) chips and modules, which project images inside head-up displays, pico-projectors and head-mounted devices like Google Glass eyewear.

Himax Display has been Google Inc.'s ( GOOGL ) partner for quite some time and supplies micro-display panels to this technology behemoth. It also provides a critical component for the much-touted Google Glass.

In July last year, Google announced its intention to take up a 6.3% stake in Himax Display, to propel its Google Glass initiative, thus showing promising growth potential in Himax's technology.

Wearable Technology Market

The wearable technology market, with products ranging from smart glasses to fitness bands to watches, is currently at a nascent stage with radical implications for a number of sectors, like fitness, healthcare, medical, industrial and military. A growing number of technology giants, like Google and Apple Inc. ( AAPL ), are betting high on this market's potential and are developing wearable technology products.

Per a report from Transparency Market Research, the wearable technology market is poised to reach $5.8 billion by 2018. We believe that with this collaboration, Himax stands to capitalize on the significant growth potential of this nascent market as mainstream demand for such products gather strength.

Himax presently sports a Zacks Rank #3 (Hold). A better-ranked stock in the industry is Silicon Motion Technology Corp. ( SIMO ), holding a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: HIMX , GOOGL , AAPL , SIMO

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