Parade Technologies' 2025 Second Quarter Webcast Investor Conference investor relations of Parade Technologies Mr. Yo-Ming Chang will present 2025 second quarter financial results first. During the presentation, all lines will be placed on mute to prevent background noise, and after the presentation there will be a question-and-answer session in English by CEO Dr. Jack Zhao and Vice President of Finance Mr. Kuowei Wu. We also will remain last 15 minutes for the attendees who would like to ask questions in Chinese. Please follow the instructions given at the time if you would like to ask the question. [Foreign language] Now I would like to introduce Mr. Yo-Ming Chang, Investor Relations of Parade Technologies. Mr. Chang, please begin.
[Foreign language].
Thanks Jason. Welcome everyone to Parade Technologies 2025 Q2 VESA Investor Conference. Parade Technologies' second quarter 2025 consolidated revenue was $133.50 million and the net income was $22.79 million. Its both basic and fully diluted EPS earnings per share were $0.29 and $0.29 respectively. These results compared to consolidated revenue of $120.87 million and net income of $17.58 million, or $0.22 and $0.22 per basic and fully diluted share in the year-ago quarter in U.S. dollars. The second quarter revenue increased 5.76% sequentially and was up 10.45% year-over-year. The gross profit in the second quarter of 2025 was $57.55 million, an increase of 7.12% from the previous quarter and an increase of 12.22% compared to the same quarter of last year. Parade completed the acquisition of Spectra7 Microsystems on April 23, 2025. Parade anticipates Spectra7 technology.
It has projects that will provide valuable support for Parade's efforts to expand into high growth markets such as data centers, AI powered computing, and next generation consumer device electronics. Based on the current business outlook, Parade is providing the following guidance for the third quarter of 2025. Revenue is between $140 million - $154 million. Gross margin is between 42% - 46%. Operating expense is between $32 million - $35 million early on.
[Foreign language].
It is my presentation for the 2025 Q2 financial results. Now I transfer to CEO Dr. Jack Zhao to answer your questions. Jack, you may begin.
Yes, thank you Yo-Ming and ladies and gentlemen, we will now begin the English question-and-answer session. If you wish to question, please press the star key and number one on your telephone keypad and you will enter the queue. After you are announced, please ask your question. Should you wish to cancel your question, you may press the star key and number two. Thank you. Now please press the star key and number one on your keypad to ask the question.
Thank you.
Our first question will be coming from Carol Wong, HSBC. Go ahead please.
Hi, could you hear me?
Yes.
Thank you for taking my question and also want to congratulate on the result. My first question would be could you help us understand the gross margin improvement this quarter, and is this mainly from the product mix or any improvement in any product lines on the profitability? That would be my first question.
I think it's mainly because of the product mix, and the Q2 did slightly better than the Q1, I think mainly due to the product mix.
Okay, may I follow up on the product mix as well?
Yeah, please go ahead.
Sorry, may I follow up the product.
Oh, okay. For the Q2, what we had on the DP is lower than, it's on the middle of 35%. Our PS or high-speed product line is above 50%. Our TT is about 5% or above 5%. TT is above 5%. TC, which is source driver, is lower than 10%.
Thank you. I think the second quarter of gross margin improvement was basically because of the increasing high-speed interface.
It's possible it's because we ship more on the high-speed product. However, the high-speed, the Zoda increase Q2 versus Q1 is quite significant. I was above 15%. It could be due to the high-speed, the shipment more than the increase the gross margin, but as I said, mainly is because due to the product mix.
Okay, thank you. Do you still think there's a pricing competition in the display solution right now?
Yeah, the display solution, especially on the source driver side, you continue to see the price pressure there. However, as we said during this conference call, we have successfully introduced our TTD, which is a touch driver T-CON integrated device, and now it has gained significant traction in the marketplace. In those areas, the price pressure is not as high as traditional architecture, that kind of driver, and we are aggressively marketing both the TTD and the TTED solution to the noble customer.
Thank you. Sorry. My last question will be the outlook for the third quarter. I think that the revenue guidance you provided is around the double digit growth at the midpoint, and just wondering where the strength is from. Do you see is it growth across the board or is just for the high-speed interface product line?
High-speed product line is continue growing, and we are happy to see that, especially our USB4 retimer and our USB hub, so on so forth. Our display device start to have a recover, and because we had a kind of last year or we lost quite some market share, now it start to recover with our new device. Those and also our TT touch device also came, some of the newer design wings, those together make the Q3 kind of within the traditional our seasonality.
Okay, so with that, with the growing based on the highest interest rates into secondhand, would you suggest that the gross margin can grow on the quarterly basis?
Okay. Gross margin as we said is multiple components. One is the product mix, the more high-speed product probably favorable, and another side of it is your operation environment, which is operation cost, and as well as you still may have a little bit the written off the older device. Those are the components together. I'm not exactly sure, it's a little bit early for Q3, not sure what would be the exact gross margin because we're talking about a couple points there. I still would like to guide the investor to look at our gross margin guidance.
Okay, got it, very clear. I'll back to the queue. Thank you for taking my question.
Thank you.
The next one, Anthony Lau, Yuanta Securities. Go ahead, please.
Can you hear my voice?
Your voice is a little bit low. If you are a little bit closer to the mic, probably would be better.
It's not better.
Yeah, the nod is kind of better.
This is now from your Kno. First of all, congratulations on the impressive result in the drone.
I have the following four questions.
First of all, I will just.
Ask about the overall environment. Have we observed any behavior changes from PC clients in the second half of this year compared to earlier? Maybe this year or maybe next year.
We have been in a kind of complicated environment which we normally did not experience, namely it's due to the tariff during the early part of Q2. Because the liquidation day and the customer tried to avoid high tariff and had some pulling, but we did not see significant amount pulling in Q2. Later Q2, from our experience, it's really the real demand there. I think Q3, from our own experience, we think we were in the normal type of PC seasonality. We do read, as you guys reading, that the Digitimes or other research report point out the GC notebook may have 50/50 kind of this year, which is the sort of part of the normal seasonality.
So far from our book building on the orders, we feel at least Q3 and as much as we see the Q4 so far, it's pretty normal as what we the other years. I just read the Digitimes report and kind of get a surprise, and from our standpoint, we actually kind of feel pretty reasonable on the normal season editing.
I see. Do we expect the standard part customers to deliver a better points performance in the second half of this year compared to other TC vendors?
I would think they are doing better, but I'm not saying that dramatically better. I would think the older demand, the people from Parade Technologies, showing certain healthy demand in Q3, as the early time of Q4, the book building as we see it.
I see it's very clear. After talking about the notebook behavior condition by the customer side, I want to ask about the USB4 penetration. What is our latest view on our latest forecast for the USB4 penetration in 2025, and have we identified any signs of acceleration or slowdown of this penetration? Since in the second quarter our high-speed product line had a better than fair performance, can you give us any color about that?
I think the USB4 retimer or USB4 has been accepted well in our industry for notebook and certain desktop. It provides a lot of unique value there in tunes us in addition to accept the Intel platform and we are doing almost all of others whether the AMD, Qualcomm, or upcoming Nvidia, Mediatek together and we are all there and we believe we occupy pretty good market share there. We do observe compared with the difference compared with last year, notebook at that time would only have one USB4 port. Now because Microsoft, if you have one, you should have all of them be USB4. You do see the notebook has the two or three USB4 port on one notebook, which end up with you need a multiple USB4 retimer there.
I think that might be one of reason you see the units should increase and all market share expansion there. We are moving to several front to build a total solution for USB4, the entire environment end to end. That's what I say. We now provide a USB4 hub and we assume we'll provide a USB4 or 4 dock to the host controller and so on so forth. We do view in the long run USB4 might be the dominant connector or high-speed connection for notebook, for gaming platform, so on so forth. That's the Waterway View and the USB4 become a very critical interface for many years to come.
I see. It seems like normally now our design in notebook, like three ports per unit.
I think now this year you see two ports, two ports, then you see three, but you see more of two ports there, and you also start to see monitor will have a USB4 there. Right. They're getting more and more.
I see. You're just talking about the USB4.2 that will also have some traction next year. My first question is a little bit stupid, but do we have any kind of—because you just talk about host controller. Is this a new product line for you, like maybe you haven't done before? I remember that we mainly produce the retimer or hub, this kind of products.
Yeah. Actually, if you remember, we acquired Fresco Logic at that time. They had a USB4 host controller at that time. Right. That was a USB3. We are taking that architecture to change the high-speed port, and we're doing very well on the high speed. We can do the host controller, so on and so forth. Right.
So.
It's not difficult for us in terms of IP wise. Yeah, we are working on those, the platform and new device. Simply, all of the USB4 related device, the end to end, we all have a device including we provide a redriver for the cable for the USB4, USB4.2 cable. Yeah, in a whole, the domain will provide a solution there.
I see.
That's what you see, the hub on the monitor. We're doing the design pretty actively, USB4 hub design with monitor, with dock, and so on, so forth.
I see it's very clear. Like Jack, do you see in next year how many percent of the notebook will be adopting the USB4.2 or maybe it's too early to say about USB4.2 to be adopting notebook? Also, do you think if we travel into this USB4.2, like 3 ports per 1 PC will be the common back end design?
USB4 port 2 for some of customer already has with Intel platform. Right. You will start to see the gaming platform may well equip those things and gradually other platform whether the Qualcomm with the future of AMD or Nvidia will all start to adopt. I think in general probably you will have a two port per notebook and for those the high end or content creation type of or gaming type of notebook you might need a four or three but a majority might be two. The interesting thing, Microsoft has the sort of setup of window policy. Once you have a USB4 all the port has to be USB4.
I see.
It's very clear in my last question related to the PCIe redriver retimer. This repeater side, can you share any kind of colors about the design changes or clients? Now they are more favorable to what kind of designs, like looking to maybe 2026 or 2027, like these PCIe Gen 6 products. What do you think their design, like, their favor, and also what is our opportunity in this era? Maybe because we also acquire, like, Spectra7 Microsystems and also integrate a lot of sources. What is our strategy and our outlook for this market?
Okay, good. Yeah. We are shipping PCIe Gen 4, Gen 5 retimer to the server customer, data center customer, continue shipping in the volume. We are developing PCIe Gen 6 retimer. However, along the way, the strategy has some changes and due to what we observed, the PCIe retimer really consumes a lot of power. If you don't go down to like 5 nanometer or 3 nanometer, otherwise the power is very hungry. On the other hand, we did observe the data center requires a lot of high speed cable and what we call ACC or AEC cable. There is a tremendous cable opportunity there. That made us get a decision to acquire Spectra7 Microsystems, and they are the provider or IP technology provider for the ACC cable.
Now we are working on, while we provide the retimer solution IPs, we also put a pretty good focus on the data center ACC cables and Spectra7 Microsystems as we acquired. We are currently shipping the ACC redriver solution for cable. With Spectra7 Microsystems acquisition, we know many high speed cable customers. We have 112G redriver solution now engaged with customers on the cable side, and we have a 224G redriver for cable in our lab and we'll continue moving that direction. We also have a PCIe Gen 6 and engage with customer for PCIe Gen 7, the cable solutions. We are adjusting our own strategy and we're excited to see the huge investment into the data center, whether in the U.S., whether in China.
The data center becomes a sort of utility and high speed cable, whether the ACC or AEC or optical, becomes very much necessary or probably shows a good gross margin. We would like to participate with our own IPs and hopefully with Spectra7 Microsystems, establish the base for us to engage with the customer. That's our strategy now.
Very clear. Thank you, Jack, and wishing Parade and you all the best in future operations. Thanks for taking my question today and I will be back too.
Okay, thank you very much.
Thank you, and next one, Daniel Yen, Morgan Stanley, go ahead please.
Hi Jack, Yo-Ming, thanks for taking my question. Good afternoon. My first question regarding more like a near term, Jack, you just mentioned that into third quarter we are seeing the high-speed interfaces still growing very strongly. I think display is recovering. Didi also gained some new order win. Can I ask on the display side in terms of the growth rate for standard and versus standard plus customer, which one do you think is growing faster? I'm also wondering because you are.
Always very.
You have a longer visibility versus some of your peers and you have your view, so do you have any sense on 4Q, how the 4Q PC demand will look like for both standard and standard plus customers? I'm focusing more on a display solution in the near term.
It's a story a little bit different, and if you compare with a disparate solution, our standard plus customers are pretty steady, which means they are behaving very well in terms of seasonality and those kind of things, right. We've been working with them many, many years, so I don't have more specific to say. They are just experiencing pretty much the previous years. For the other display customer, our story is recovery, as I said, recovery. Those recovery in the Q3 and towards Q4, especially our TTD device gained momentum and shipping the revenue, and it's just a different story there. Our own, then just normal, the panel, it's not really the market overall. The demand is our own recovery with new device, the TTED device that started shipping, so it grows reasonably better, that's what I would say.
Intensity 4, I cannot, I don't know more than other people do, and I will think the digitime probably has the industry view. I can only comment based on what are we pure receiving, our own Q build. So far, so good, that's as most I can say.
Got it.
Thanks, Jack. If I can follow up, I want to ask about a standard plus customer, the future projects, because.
We.
Are seeing, I think for standard plus customer, they continue to migrate their core chips and they also have different form factors on their tablets or notebook in the next two years. I'm just wondering from your observation, is there any, let's say, new projects or counter increase opportunities from this standard plus customer, and how should we think about the growth rate for the standard plus customer in the next two years.
Yeah, the Standard plus customer will continue working with their men and in the task queue. We just won a pretty big display project which goes to very deep micro for traditional TCON device, and we are discussing a few more there for the TCON device. In addition, we also engage with them for the high speed device. It's like a custom design with them, a pretty complicated device, as well as we present our Spectra7 data to them, and they're pretty interested. In terms of next two years, I would think we should be quite stable within in terms of revenue, and hopefully the newer device into the market, we will see the revenue growing because the ASP device for those deep submicron is getting pretty high.
In addition, we may open up the other area on the high speed device as the Standard plus customer realizes playing in the very unique to provide those interface solutions. They're pretty happy, and we are in the early time to engage with them under those kind of devices. Yeah, I think I don't see much of a change as the relationship, and hopefully the revenue will grow.
I see. Thanks Jack. If I may, can I follow up.
With you just mentioned about high-speed interface projects with standard plus customer, what kind of interface do you think?
You can.
What kind of interface do you think you are engaging with the customer? Is it still USB or PCIe or any other kind of interfaces?
Could you share more?
I think the high speed on any other interface, that's probably the best way to describe, and we demonstrated to them we are very good on the high speed side. Whether USB, PCIe, and the other standard, the Sprint pool, they recognize well-proven, experienced supplier to them, to the many industry actually that they observe. We have quite devices, quite many devices there. Yeah.
Sure, I got it. For my second question, just to move to the high-speed interface side, as you mentioned, I think Parade has a lot of high-speed IP. We also can leverage our acquisition from Spectra7 Microsystems to penetrate into some of the data center space. I'm just wondering, because previously I think Jack, you talked about there could be some opportunities on some customized interface chips. I also want to follow up on this side. Do you think we can leverage our IP and do more not only for the standard customer but also from the standard customers? Maybe we can also have some new projects in the future. My question is, do you still view the customized high-speed interface chips as an opportunity, and when do you think this will materialize? What kind of interface do you think it would be? That's more on customized projects.
I think we have many IPs on the high-speed side, and we are pushing ahead to take those customized high-speed device opportunities and try to attract tier-one customers to do some customer projects with us and to fully utilize our high-speed know-how, high-speed IPs. As we said, we already moved to the 6 nanometer on the high-speed side. We are aggressively searching for those opportunities and hopefully we can report to you soon. We recognize those are the areas Parade can provide a unique value to the customers, and we also provide us to grow our business. That's why we continue very much focused on the high-speed side. I think we have traction, we have opportunity, and hopefully it becomes a sizable business for us.
I see Jack.
If I can follow this, do you think you mentioned about a 6 nanometer project or the customized opportunity?
We validated our high-speed interface IP on both 12 nanometer and 6 nanometer there. It's no longer any issue for us to do those kind of projects. Right. We continue to develop those PCIe retimer on the 6 nanometer in the view that we would like to mature our high-speed interface IP and for us to do more. I hope that makes sense to you guys.
I see just one follow-up. What kind of application for this 6 nanometer or 12 nanometer IP do you think?
Is it desktop, is it notebook, or is it server?
I don't want to say more. I don't want to be misleading. I think I just stay here at this moment.
Sure. Okay.
Thank you.
Yeah.
Maybe my last question is on.
Still.
I think maybe focusing more on PCIe you talk about. You are now developing the PCIe Gen 6 retimer and can I note more detail on the schedule? When will you do the sampling and when do you expect this will pick up?
Early next year we will have a sampling there, and as I said, we are doing those, a lot of try to utilize developer IP for us on the high-speed side, and on the data center strategy we have quite focus on the ACC cable in the short term.
I see.
Very clear.
Thank you, Jeff. I'll be back in the queue.
Thank you. Next one. Mike Young, Bank of America. Go ahead please.
Hello, can you hear me?
Can you hear my voice?
Yeah, clear. Thank you.
Okay, thank you management for taking my question. Number one, I want to go direct into the data center business. Could you update your revenue or maybe revenue target to us regarding the data center related revenue?
Thank you.
I think the data center revenue at this moment is still quite small. I think this year probably more than $10 million. That's kind of number we'll look at it.
Okay, thank you.
My number two question is regarding the cost side associated with maybe tariff and also the potential move into U.S. production. I just want to know if you are incurring a higher cost at the wafer side or even like package, how should we think about your overall gross margin profile in the longer term? Is there any discussion yet regarding how to share the burden from tariff?
Thank you.
As interesting as there could be and I think for so far for wafer side the price pressure certainly cannot compare with a few years ago during the shortage. Right. I think a wafer side still is the buyer's market. However, on the other side, the substrate, BGA substrate, has become obvious as many people report as it has become a shortage and takes a longer lead time to get a BGA substrate. Also, some of the subsidiary vendors increased quite the price there. We are communicating this to our customer. For BGA parts, the lead time increased significantly. The cost also increased and the impact for us is not that big because many of our parts or majority of our parts is QFN based.
On the display side, as I communicated, we move traditional TCON architecture to those TTD or T-CON devices which just like source driver, just a piece of silicon, that's not really, don't have a substrate or those kind of thing there. It's not impact us that much. The industry is facing the shortage of substrate. You have a second question on the tariff side. We have not had any specific talk about the tariff cost, the price pressure. We do have a lot of talk for the non-China, non-Taiwan and move the manufacturing to the other place. Or you have a second source, those do increase our multiple reinvestment order manufacturing. It's kind of cost increase as well. We deal with more on those side rather than the tariff. Seems the tariff still in the domain of ODM distributor and the site rather than our side.
I don't know because today there's a new semiconductor, what an impact to us remain unclear. I expected we may have to have a certain manufacturing site move to the U.S. and so on so forth.
Got it.
Can you check? It's very clear. I'll go back to engage. Thank you.
Next one. Lucas Liu, KGI. Go ahead please.
Hi, can you hear me?
Yes.
Okay, my first question is about the data center cabling technology and related products. As we have seen that Spectra7 products are now listed on current websites such as linear equalizers and redrivers, could management elaborate more your forthcoming for like data center cabling technologies such as DAC and maybe further linear equalizer products, redriver products such as how much common channels will you provide.
What's in at what speed.
At this moment we are doing the so-called ACC the redriver, right. We have a two channel, four channel, and a device for the cable paddle card side. In the beginning we already say we are in the quite good volume shipment on the 56 gig per second device for what people call 400 gig systems. We are engaging with customer with 112 gig four channel device for people so-called 600 gig, I believe, systems on the paddle card on the cable. Those are the 2 m, 3 m length of cable, and we have a lab has a 224 gig four channel device, two or four channel device for people made a cable while doing the measurement and moving forward as what you said.
We.
Have the retimer technology and we certainly were thinking about how would we move our value chain high to provide the other type of device. For us at this moment it's a lot of learning especially for Parade ourselves because we didn't have too much experience with working on a cable. Spectra7 leading us to those cable customers is new to us and every cable, the CAT system, the back system are very different from what we've done before. We just started almost like three or four months.
Hopefully as we settle down we may have more to offer and I think we're getting excited actually, the PCIe Gen 6, Gen 7, and it's a lot of customers ask us and PCIe Gen 6, Gen 7 is a little bit different because there's a certain logic there and traditional cable providers, they don't know and for us those logic, it's relatively simple. It's very convenient for us to use the Spectra7 technology, integrate some logic there to do the PCIe 6, 7, those cables. That's where we are and hopefully this will become built up as a business to contribute to our revenue. We're excited, Spectra7 technology is pretty good. If you ask industry, probably people know their financial was very poor and Parade has well established or very healthy financial.
I think their customers used to not want to use their device not because of their technology, it's because they don't have a good financial support them so that becomes non-issue anymore. Let's see how that goes. We all know that data center is one of highest growth rate and I also personally believe next couple years among that much investment in the data center is a wonderful area and we want to find a way to participate. I think especially on Spectra7 those cable is one way for us to participate.
Got it.
My follow up question is could you comment on the typical number of like linear equalizer or redriver that is used in a single DAC or ACC cable, and how much value could each cable or each device that contribute to revenue?
You mean the device price, right?
Yeah.
The content value.
Yeah, it's pretty big. My understanding is about $5 or $5 - $10 of those kind of range.
Sure.
Thanks for sharing.
Yeah, depends on your speed, but when you do the ACC, it's much more expensive.
Got it.
Very clear.
Yeah, it's very different. 2 m or 3 m you could do the ACC and when you go to 5 m, 6 m you have to do the AEC, and even longer you have to do the optical.
Right.
That's what we understand and yeah hopefully we can build a business. It's like we acquired Fresco Logic, now we had a quite good IP and engage with customer and create a good business. I hope the Spectra7, a few years later, we'll have established such kind of business. Yeah.
Okay. For a longer term, would it be possible to extend our business further to like AOC products for Parade.
We just started, as I said, we just started and I don't know, I think we focus on those cable to make a customer, to make a name recognition there, and then we can continue expand. I think the system customer know us, provider retirement, they start to know we provide a cable, and how would we combine those together and to make the good business, you have to work with your customer, and the good thing is those customer, tier-one customer, more or less know us pretty well.
Got it. Very clear. My second question is regarding the OLED T-CON panel makers are planning 8.6 generation expansions further, and what is your view of Parade's competitive position in OLED T-CONs both for standard plus and non-standard plus customers? I also want to know what pace of OLED adoption in IT applications you think that would be in maybe next year or in 2027, 2028.
At this moment, the M-OLED remains as a niche for the IT panel, and M-OLED, the panel technology for IT, progresses very quickly. Right. You had previously the P-OLED, and later on you got the LT, and then you got double layer of the M-OLED. Right. It's progressed very fast, and I think that at this moment M-OLED technology, especially from leading panel suppliers, people like SDC, hit a good IT type of M-OLED panel, which there are double layers and solve the power problem, also solved the lifetime problem. It's good. We have been shipping to the SDC quite a long time for the M-OLED and T-CONs. Right. We are working with our Cinema Plus customer for multiple generations of M-OLED T-CON, and we are also working with the so-called now the tier-one customer to do the M-OLED, especially like a TTD type of M-OLED solutions.
Outside the tier-one, M-OLED remains kind of expensive. I do believe M-OLED will grow in the IT business but may take a longer time. It's fewer because sometimes it's very hard to ask your customer in the very competitive market why would you have to have the M-OLED there. That's the thing. I do think the tier-one customer, they are high in the notebook, will move to the M-OLED. Yeah, for business type of general, it's very hard to convince them to do this, and purely because cost is still expensive.
Sure, very clear. Thanks for taking my question. I'll be back to the queue.
Thank you.
Next one. Bruce Lu, Goldman Sachs. Go ahead, please.
Hi, thank you for taking my question. Jason. Hello.
Please go ahead.
Yes, thank you. Yes. I want to ask you about how do we calculate the addressable market for ACC and how does that grow in the server market? It's actually very complicated for investor.
Yeah, it's very complicated.
Can you walk us through like how you do the calculator? If you look at the share price performance in U.S., right, AEC related things outperform meaningfully to ACC. It seems to me that the addressable market for AEC is a lot bigger. At least, you know, we refer to the share price performance.
Right, right. I think every company was.
Yes, but the company was circling on the ACC at the current stage.
Right.
I want to. I'm wondering whether we misunderstood the potential market for ACC or you know.
I think the thing is evolving. Right. And AEC, if you, in terms of company performance and market variation, it's very different from the ACC provider. However, your tier-one customer has previously been chasing the performance and now they also start to be aware of cost or whether you must have AEC. Right? You can aim the room for ACC. We see more people, tier-one data center guys, start to wonder or start to try ACC solution. That's definitely true. You can ask those, the data center guy from the U.S. to China and public, especially for the short cable, 1 m, 2 m cables. It's very hard to quantify because previous year or even this year, the dominant theme is the easy type of solution. As things move, I think things will change.
The interesting thing is that most of the AEC, the company also doing ACC. You realize this, right? A lot of them, they don't say it, they actually do it. We hope we are from the other angle to look at this thing and we are new to this market, but we are hungry for this market as well.
Do we expect to have, like, you know, competitive AEC product in Typhoon?
At this moment, We have not planned it for this purpose because we're new, as we said. For sure, we have ACC solution as an acquisition, right? As an acquisition, and we have those devices already in the lab and we're going to market it aggressively there. That's the first stage. Once we know and engage with customer, we will think about developing our roadmap and so on and so forth there.
One thing is the cable demand on the data center could be quite high.
I'm still a little bit confused. Sorry, I had to get a little bit deeper.
I think not only you are confused, a lot of us are also confused. That's why I'm asking you. On one hand, Nvidia ASIC chip are pushing for higher speed. The data transmission is getting higher every, you know, every year nowadays. We are dealing with a lot of, like, you know, higher speed product every year. It got to be a lot faster every year. The point for CSP is to pursue a better solution. Supposedly, it has higher priority than lowering the cost moving to ACC, right? I wonder what's their mind, why lower costs becomes a priority for them at the current state. I don't know exactly.
I do see the customer has to run existing data center, right? That becomes their issues. You have a different, you have I team to run that future. You have people who run the daily business. That's another set of people, right? That's what I can imagine. I certainly understand what he had said. The speed becomes dominant factor for the system performance. That's no doubt. We just try to find a way, how would a way can cut into to make our business out of it.
I see, I see. Okay, then just, you know, just focus on like couple like anchor customer. Make sure act can be deployed with.
Yeah, that's, you're looking for anchor customer they need to use it. Right. That's the thing you're. Yeah. You need a Tier 1 anchor customer to support you to move this to adopt that. Yes. Yeah. Yeah. Yes.
Understand.
Okay. Okay.
Thank you.
Thank you.
Ladies and gentlemen, we will now move to the Chinese question-and-answer session. Thank you. [Foreign language].
[Foreign language].
[Foreign language]. Device, especially EV, though associated with California, the EV customer, yeah, [Foreign language]high speed converter device. Now Ji Zhao in particular has a handle traction [Foreign language] DP hub, hub game traction because the function [Foreign language] DP signal cable, okay. Spread six, seven different panels took a game, a lot of traction now into the business side, [Foreign language] more than $10 million, yeah, about more than $10 million revenue contribution and grew pretty fast. [Foreign language]. The design activity, the pipeline, yeah, gave a lot of more traction there and we continue grow. The only thing is [Foreign language] price become, yeah, it's getting very challenging, especially if they spray something, so [Foreign language] provide to the display side. Provide display CPU, [Foreign language] say yellow, the function device, whether dosage panel should provide [Foreign language] USB solution.
USB ship quite some volume there, [Foreign language] shipment now, the ship device came together actually, yeah, quite good, [Foreign language] like those who provide device back, [Foreign language]. so the design to achieve Tatsuhi's back [Foreign language] examination device put on the system as exam [Foreign language]. Now CIXI device, [Foreign language] type of device, [Foreign language] complete to the IP, high speed IP, the IHS proven that IP, the device, typical devices to try that have proven or to become comfortable for Nitishi to go to the IP for me, initiate the customer [Foreign language] hopefully the 2027 [Foreign language] project is successful. Now dollar turns quite high, even with the volume charge, yeah, [Foreign language] it's quite high business [Foreign language] with investor when the thing getting more close to the production.
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[Foreign language] Side of business. Continue [Foreign language] develop M-OLED solution, which you develop, which are unique.
Now Parade IPK stand out, [Foreign language] we are going through the standard plus customer to work with them, actually we ship quite a lot of device to them. Yeah, [Foreign language] traditional panel price competition, that's very high.
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[Foreign language]. Okay, thank you everyone.
Thank you.
Thank you.