Himax and Kneron Join Hands for AI-enabled Security Solution

Himax Technologies (NASDAQ:HIMX) announced on Wednesday (October 24) a collaboration with Kneron to accelerate the development and commercialization of a 3D sensing and AI-enabled security and surveillance solution.

According to the companies, the solution can deliver real time 3D depth map high accuracy images in both indoor and outdoor environments. It is also developed to consume ultra-low power, which makes it optimal for integrating into security and surveillance systems.

It was noted that multiple products from Himax, a manufacturer of display drivers and other semiconductor products, would be used in conjunction with products from Kneron, a company that provides edge artificial intelligence (AI) solutions.

“While we continue working closely with leading Android smartphone makers and platform providers to enable wider 3D sensing adoption in 2019 and beyond, we are seeing emerging 3D sensing adoption in various vertical industries such as AR/VR, IoT, industrial, automotive, security and surveillance, among several others,” Jordan Wu, CEO of Himax, said in the release. “3D sensing represents the most significant growth opportunity for Himax in the next few years.”

Himax’s SLiM (Structured Light Imaging Module), a 3D sensing module capable of facial recognition and ASIC, a chip designed for 3D depth decoding, is set to be used with an AI processor from Kneron, equipped with facial recognition algorithm and deep learning technology.

A report by Research and Markets suggests that the video surveillance market is set to touch US$43.8 billion by the end of 2025, growing at a compound annual growth rate (CAGR) of 11.8 percent during the forecast period between 2018 and 2025.

The report said that North America led the market for video surveillance as it captured 35.9 percent of the entire market in 2017, thanks to major investments from governments. However, the fastest growing region is tipped be Asia Pacific due to growing security concerns in the region.

Meanwhile, Technavio said that the global video surveillance market will grow by more than US$64 billion by 2022 as it particularly picks AI-based video surveillance as a key trend for the future.

Following the announcement on Wednesday, shares of Himax were down 6.23 percent to close the trading session at US$5.72. Over 1.68 million shares were traded throughout the day, with the stock reaching a high of US$6.12 and a low of US$5.71. Crucially, the stock’s 52 week low currently stands at US$5.61.

Himax has a “Moderate Buy” ranking on TipRanks with an analyst target price of US$7.50, a high estimate of US$10 and a low of US$4. On TradingView, the stock has a “Strong Sell” ranking with 16 verticals against, nine in neutral and one in favor.

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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.