Himax Technologies (HIMX) stock soared 8.18% intraday on Tuesday, participating in a broad rally across optical communication names.

The surge is attributed to institutional research reports highlighting severe capacity constraints for indium phosphide (InP) substrates, a critical component for optical modules. The global supply-demand gap exceeds 50%, with demand for InP substrates expected to surge further as optical modules evolve from 800G to 1.6T.

Analysts forecast this structural shortage to persist through 2028 due to long expansion cycles, high technical barriers, and extended customer certification periods, drawing significant capital attention to optical communication-related stocks like Himax.