Chardan Comments On Google Glass After Consumer Sales Are Suspended, Himax Technologies Could Be At Risk

Google Inc GOOG suspended consumer sales of its Google Glass until a better-finished and more affordable version is developed. The company also decided to change the team and management behind the project; previously under Google’s X laboratory’s control, the mission has been handed to Tony Fadell, CEO of Google’s Nest home automation division.

In a flash note published on Thursday, Chardan Capital Markets weighed in on this decision. The firm sees this as a potential risk for Himax Technologies, Inc. HIMX, provider of the LCoS Microdisplays featured in the first version of the wearable device.

Chardan analyst Jay Srivatsa said the research firm projects “that as a part of the redesign, Google could reconsider all decisions related to displays, semiconductor chips, battery etc.,” and believes that “other LCoS Microdisplay providers such as Omnivision Technologies (OVTI-NR) and Kopin (KOPN-NR) could take this opportunity to present their solutions in an attempt to displace HIMX.”

The report also pointed out a more immediate risk for Himax. As the company has recently “ramped its capacity to support LCoS Microdisplays at its fab in Taiwan,” it may now have to look into some alternatives to fill the fab.