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December, 2017 Industry Leading Provider of Outsourced Semiconductor Assembly, Test & Bumping Services

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Page 1: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

December, 2017

Industry Leading Provider of Outsourced

Semiconductor Assembly, Test & Bumping Services

Page 2: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

2

Safe Harbor Notice

This presentation contains certain forward-looking statements. These

forward-looking statements may be identified by words such as ‘believes,’

‘expects,’ ‘anticipates,’ ‘projects,’ ‘intends,’ ‘should,’ ‘seeks,’ ‘estimates,’

‘future’ or similar expressions or by discussion of, among other things,

strategy, goals, plans or intentions. These statements include financial

projections and estimates and their underlying assumptions, statements

regarding plans, objectives and expectations with respect to future

operations, products and services, and statements regarding future

performance. Actual results may differ materially in the future from those

reflected in forward-looking statements contained in this document, due to

various factors. Actual results may differ materially in the future from those

reflected in forward-looking statements contained in this document, due to

various factors. Further information regarding these risks, uncertainties and

other factors are included in the Company’s most recent Annual Report on

Form 20-F filed with the U.S. Securities and Exchange commission (the

“SEC”) and in the Company’s other filings with the SEC.

Page 3: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

3

Group Snapshot

Founded: 1997

Headquarters: Hsinchu, Taiwan

Ticker Symbol: TWSE : 8150.TW

NASDAQ : IMOS (ADS)

Employees(1): Taiwan: 5,761

China: 1,015

Manufacturing footprint in China & Taiwan

Shanghai, China

ChipMOS Shanghai (JV with Unigroup)

Hsinchu, Taiwan

ChipMOS Taiwan

Tainan, Taiwan

ChipMOS Taiwan

Overview

(1) As of September 30, 2017

(2) ChipMOS Taiwan is authorized by Unigroup to manage ChipMOS Shanghai

Key milestones

2001 2000 2011 2014 2010 2015 2016

• Acquired DDIC

and memory test

assets of SPIL

• SPIL became a

strategic

shareholder of

ChipMOS

Taiwan

• Started TCP

package for

LCD driver IC

and 12" wafer

assembly and

testing

business

• ChipMOS

Bermuda listed

common shares

on the Nasdaq

exchange

market

• Set up 12”

Gold

bumping, Cu

RDL, MCP, Cu

pillar, MCB

bumping and

WLCSP line

• Listed ChipMOS Taiwan on TWSE

• Announced the merger between ChipMOS Taiwan and ThaiLin

• Invested in JMC and Ryowa

• ChipMOS

Taiwan

merged

ThaiLin

• Announced

strategic

partnership

with Tsinghua

Unigroup

• ChipMOS

Taiwan

merged

ChipMOS

Bermuda and

issued ADS

(Nasdaq

Ticker: IMOS)

2017

• ChipMOS

Taiwan

formed

Shanghai

JV with

Tsinghua

Unigroup (2)

Page 4: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

Corporate Holding Structure

4

ChipMOS Taiwan

Page 5: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

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Turnkey, High-yield, OSAT Partner of Choice

Offer turn-key solutions for core technology product segments

Dedicated OSAT capacity and strategically focused on collaboration-driven

growth

Leverage current partnerships to expand customer base

Services Provided

Pro

du

ct O

ffe

rin

g

DDIC

Bumping /RDL Wafer Test Assembly/Package Product Test

DDIC u u u u

Flash u u u u

DRAM u u u

Logic/

Mixed Signal u u u u

u

Page 6: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

Package Test

15.8%

Wafer Sort

11.1%

Assembly

30.6%

LCD Driver

25.7%

Bumping (incl.

RDL/MEMS/PM)16.8%

6

2017 Revenue Breakdown

Consolidated Revenue

19,361.9 22,005.1

18,837.1 18,387.6

13,532.6

0

4,000

8,000

12,000

16,000

20,000

24,000

2013 2014 2015 2016 Q1-Q3'17

(NT$ M)

(1) Since 2015, ChipMOS Shanghai’s revenue was not included

in the consolidated revenue.

By Manufacturing Segments By Products

2017 Revenue Breakdown (Q1~Q3)

Niche DRAM

15.5%

Commodity DRAM

11.6%

Flash

18.5%

SRAM

0.9%

Logic/Mixed Signal

10.6%

DDIC

26.5%

Bumping (incl. RDL)

16.4%

Page 7: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

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COF Growth

Conversion of COG to COF in smartphone panels with full screen,18:9

format or OLED display resulting in increased volumes

ChipMOS leads industry as the largest supplier of the 12’’ fine pitch

COF in volume production

Meeting demand for continued 4K/UHD uptake

OLED Proliferation

OLED DDIC expected to see growth from small panel demand

>4 years production experience in OLED driver 12” bumping

Extending services, including turn-key, to new customers

Expect more opportunities in 2018

TDDI Transition

A new technology driving COG market segment transition

The first company with volume ramp to support partners’ market

introduction

Higher TDDI penetration expected as customers win more design-ins

DDIC

Leveraging Market Leadership Position

Page 8: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

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ChipMOS Positioned to Expand Market Leadership

Partnering with key customer to capture new, high-end smartphone

demand

In volume production since 3Q 2017

Expanding to multiple products using core technologies

Market penetration to proliferate across end customer offerings

Major OSAT for Taiwan niche DRAM makers

Supporting various automotive, display, graphic, and embedded products

NOR demand from display, automotive and entertainment center

segments remains strong, utilizing full wafer test capacities

Expanding NAND product type offerings

Added Cu based plating capacity to service non-driver customers

Integrating wafer bumping and assembly core technologies, to support

multiple growth opportunities in RDL, WLCSP, flip chip, power IC, MEMS

etc.

Optical

Sensor

Memory

Mixed-

Signal

Page 9: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

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End Application Demonstration – Smart Phone

DDIC:

COG COF (Full screen, 18:9, narrow bezel)

TDDI (COG COF)

OLED driver (COF)

Power IC (Load switch)

MEMS:

E-compass, Gyro, Accelerometer

Niche DRAM

Low power DRAM, mobile DRAM

NOR (OLED panel, TDDI)

Biometric sensor

Page 10: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

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New Smartphone Features Driving DDIC Revenue Growth

Source: WitsView Jul. & Aug., 2017

2015 - 2020 AMOLED & TDDI Penetration in Global Smartphone

Full-screen/18:9 switches COG to fine pitch COF and AMOLED require COF capacity

Integration of new smartphone features, including TDDI and fine pitch COF, driving need

for added test capacity

Page 11: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

UHD/4K TV Growth DDIC COF Capacity Demand

11

2015 - 2020 UHD TV growth

ChipMOS Adding Capacity

to Capture

Continued Growth

Source: Futuresource consulting, Apr.’2016 & HIS market Jan.’2017

UHD(4K) TV & OLED propel significant

memory/storage market growth in set top boxes, TV,

home entertainment systems

Market penetration of UHD TV accelerating, & drives

DDIC COF demand increasing

Page 12: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

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New Applications Driving Increased NOR Demand

Source: HIS, Gartner, Synaptics, & summarized by Haitong Securities, 2017

New end-product & application drive NOR flash demand, and particularly wafer test

capacity

Margin benefit from fully utilized, fully depreciated wafer testers for NOR flash

Page 13: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

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Industry Leader in Outsourced Semiconductor Assembly & Test

4 Start to Realize Significant Financial and Operational Benefits from Prior

Corporate Structure Streamlining

Joint-Venture to Monetize Shanghai Operation, Drive China Growth and Deliver

Increased Profitability 3

Focused on Growth in Key Markets, including DDIC, Memory & Mixed Signal Markets 2

1 Leveraging Leadership Position and Track Record as Top OSAT

5 Robust Technology Roadmap Supports Multiple Growth Vectors

6 Proven Senior Management Team Executing on Right Business Strategy

Page 14: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

China JV: Catalyst for Significant Profitability Growth

14

Strategic investors led by Tsinghua Unigroup have invested RMB 498.43 million for

a 54.98% stake in ChipMOS Shanghai-JV closed on March 24, 2017

Completed the 1st stage capital injection of ChipMOS Shanghai on June 30, and the

2nd stage capital injection is scheduled to complete by end of Q1 2018.

All together, ChipMOS Shanghai is expected to receive a total approximately RMB

1,074 million in funding

ChipMOS is not consolidating ChipMOS Shanghai post the JV closure. ChipMOS

Shanghai becomes a long-term investment of ChipMOS and recognized profit/loss

generated pro rata.

ChipMOS is strategically positioned to capture the growth opportunities of the

semiconductor market in China

Post-Transaction Shareholding Structure

ChipMOS BVI

45.02%

Unigroup Guowei

48.00%

Strategic Investors

+ Employees

6.98%

ChipMOS

Shanghai

Page 15: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

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Q3’17 Financial Highlights

Page 16: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

Package Test15.6%

Wafer Sort11.0%

Assembly27.3%

LCD Driver27.2%

Bumping (incl. RDL/MEMS/PM)

18.9%

0

200

400

600

800

1,000

Q2'17 Q3'17

Bumping (incl. RDL/MEMS/PM) ( NT$ M)

Q3’17 Revenue Breakdown By Segment (unaudited)

16

By Manufacturing Segments

0

200

400

600

800

1,000

1,200

1,400

Q2'17 Q3'17

LCD Driver

QoQ 6.7% ( NT$ M)

0

200

400

600

800

1,000

1,200

1,400

1,600

Q2'17 Q3'17

Assembly ( NT$ M)

0

200

400

600

800

Q2'17 Q3'17

Wafer Sort ( NT$ M)

0

200

400

600

800

1,000

Q2'17 Q3'17

Package Test ( NT$ M)

QoQ 22.5% QoQ -17.5% QoQ -5.8% QoQ -7.1%

Page 17: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

Q3’17 Revenue Breakdown By Product (unaudited)

17

By Products

0

200

400

600

800

1,000

Q2'17 Q3'17

Au Bumping (Incl. RDL) ( NT$ M)

0

500

1,000

1,500

Q2'17 Q3'17

DDIC

QoQ 7.1% ( NT$ M)

0

100

200

300

400

500

600

Q2'17 Q3'17

Logic/Mixed Signal

QoQ -6.3% ( NT$ M)

0

10

20

30

40

50

Q2'17 Q3'17

SRAM

QoQ -9.7% ( NT$ M)

0

200

400

600

800

1,000

Q2'17 Q3'17

Flash

QoQ 6.6% ( NT$ M)

0

200

400

600

800

Q2'17 Q3'17

Niche DRAM

QoQ -16.5% ( NT$ M)

0

100

200

300

400

500

600

700

Q2'17 Q3'17

Commodity DRAM

QoQ -40.7% ( NT$ M)

QoQ 22.6%

Niche DRAM

13.7%

Commodity

DRAM8.0%

Flash

20.1%

SRAM

0.9%Logic/Mixed

Signal10.7%

DDIC

28.1%

Au Bumping

(incl. RDL)18.5%

Page 18: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

Test17.3%

Assembly12.0%

LCD Driver63.1%

Bumping7.6%

Q3’17 Capital Expenditures (unaudited)

18

CapEx

3,644.6

3,123.3

3,648.7

979.9 1,118.8

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2015 2016 Q1-Q3' 17 Q3'16 Q3'17

( NT$ M)

Q3’17 CapEx Breakdown

Page 19: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

74% 76% 77% 76%

0%

20%

40%

60%

80%

100%

Q3'16 Q3'17 Q2'17 Q3'17

Q3’17 Capacity Utilization

19

Utilization Rate

82% 75%

0%

20%

40%

60%

80%

100%

Q2'17 Q3'17

Test

73% 63%

0%

20%

40%

60%

80%

100%

Q2'17 Q3'17

Assembly

87% 87%

0%

20%

40%

60%

80%

100%

Q2'17 Q3'17

LCD Driver

63%

77%

0%

20%

40%

60%

80%

100%

Q2'17 Q3'17

Bumping

Page 20: Industry Leading Provider of Outsourced Semiconductor ... · Overview (1) As of September 30, 2017 (2) ... A new technology driving COG market segment transition ... semiconductor

Company Website

http://www.chipmos.com

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