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What happened

Shares of Himax Technologies (NASDAQ:HIMX) rose 125.4% over the first six months of 2021, according to data from S&P Global Market Intelligence, as the Taiwanese semiconductor stock looks to benefit from the upgrade cycle in mobile devices. 

So what

Himax’s specialty is display imaging processing technologies that are used in automobiles, mobile communication, and televisions. 

It received a big boost as the global pandemic drove people into their homes and had them sit staring at their smartphones and TVs, as well as a host of other consumer electronics and gadgetry.

Image source: Getty Images.

Yet the coronavirus outbreak also disrupted supply chains, causing a massive worldwide shortage in computer chips that’s led to production delays in computers, mobile devices, autos, and more.

But the smartphone upgrade cycle that began in earnest last year with Apple (NASDAQ:AAPL) releasing the latest iteration of its iPhone has kept demand for display chips high (Apple, though, had previously begun manufacturing its own M1 chip in-house).

Now what

Himax Technologies is scheduled to report its second-quarter results on Aug. 5, so we’ll see what impact, if any, the chip shortage has had on the chipmaker’s financials. But there remains a burgeoning demand for its output that should sustain the stock for quite a while.

Shares of Himax have quadrupled over the past year, but with the semiconductor industry being typically cyclical in nature, the chipmaker may have ridden this cycle as far as it can go. 

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