Phoenix Silicon International Corp. · TWSE:8028
Phoenix Silicon International — Non-Deal Roadshow (December 2023)
29 slides from Phoenix Silicon International's roadshow presentation, Dec 20, 2023
Slide 1: PSI Roadshow in Q4, 2023
PSI Roadshow in Q4,2023 20 Dec. 2023
Slide 2: Safe Harbor Notice
Safe Harbor Notice • Psi’s statements of its current expectations are forward-looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. • Information as to those factors that could cause actual r
Slide 3: Agenda
Agenda • 2024 macro economics forecast • Semi industry trending • PSI strategies update • ESG subject update • Key takeaways Phoenix Silicon International Corporation Confidential 2
Slide 4: 2024 Macro & Semi Outlook
2024 Macro & Semi Outlook
Slide 5: Macro Economic
Macro Economic Core CPI, % China 6 Consumption, 3yrs CAGR % EURO 15 5 2016 Financial transactions 2017 slowing down 10 4 Inflation reduces 2018 $ 2019 consumption power USA 3 5 2023~ 2021 2021 2022 2 0 Deposit, 3yrs CAGR % 1 5 10 15 20 2022 2023 2024 Source: Bloomberg, Cathay United Bank Phoenix Sil
Slide 6: World GDP FCST
World GDP FCST % 3 2.5 • Slower, Elusive 2 • Interest rate Higher for longer • Little margin for policy error 1.5 1 2023 2024 2023 2024 2023 2024 OECD(9/19) IMF(10/10) S&P(10/15) prior latest Source: S&P, IMF, OECD Phoenix Silicon International Corporation Confidential 5
Slide 7: Semi Industry Trending
Semi Industry Trending
Slide 8: Back To Expansion Cycle
Back To Expansion Cycle USD M Driven by AI (Data processing) Revenue & Smart EV (Automotive) 6.1% 15.5% 765 721 27.1% 0.2% 16.8% 624 598 600 -10.9% 535 2021 2022 2023E 2024E 2025E 2026E Source: Gartner, Oct. 2023 Phoenix Silicon International Corporation Confidential 7
Slide 9: Inventory Under Control Except Power Semi
Inventory Under Control Except Power Semi Days Days Days MIRCON TI INFINEON 214 220 250 180 149 153 200 196 200 160 139 145 180 134 167 170 200 140 122 121 180 119 153 148 120 160 8 Qtrs Avg 138 150 114 122 120 127 100 140 111 80 120 107 100 101 60 100 40 50 80 20 60 0 0 2 1 Q4 2 2 Q1 2 2 Q2 2 2 Q3
Slide 10: What's Different in Foundry UTR
What’s Different in Foundry UTR Super cycle destocking Normal 8” : 70-75% Source: Semi. Org, IDC, PSI estimate Phoenix Silicon International Corporation Confidential 9
Slide 11: Wafering Business Line
Wafering Business Line Reclaim demand up driven by advanced node & 3D-IC packaging Test wafer for carrier wafers emerging in permanent bond SoIC & 2nm BSPD
Slide 12: Advanced Node: Semi Major Growth Driver
Advanced Node: Semi Major Growth Driver 𝑪𝑨𝑮𝑹𝟐𝟐−𝟐𝟔 14.3% K wpm Source: Research institution, PSI Phoenix Silicon International Corporation Confidential 11
Slide 13: Market Surging in Si Interposer & Carrier wafer
Market Surging in Si Interposer & Carrier wafer • Carrier wafer includes CIS BSI & BSPD • Si interposer major for 2.5, 3D packaging and SoIC (SoIC not included) Kwpm 250 𝐶𝐴𝐺𝑅22−26 16.1% 100% 200 80% 150 60% 100 40% 50 20% - 0% 2021 2022E 2023F 2024F 2025F 2026F 2021 2022E 2023F 2024F 2025F…
Slide 14: Strategic Focus-on "Special" Test Wafer
Strategic Focus-on “Special” Test Wafer Prime wafer: Major General specification thickness 775+/- 15um Test wafer: Downgrade PSI Interposer for 2.5/3D packaging Special requirement Ingot thickness 770+/- 2um Carrier wafer for Permanent bond Phoenix Silicon International Corporation Confidential 13
Slide 15: Permanent Bonding With Carrier Wafer
Permanent Bonding With Carrier Wafer BSPD 2nm/18A Source: imec Phoenix Silicon International Corporation Confidential 14
Slide 16: Reclaim Market Size By Technology Node
Reclaim Market Size By Technology Node High Grade > 25% USD Bn 3.6 times Higher Grade emerging Source: PSI, company data Phoenix Silicon International Corporation Confidential 15
Slide 17: Strategic Expansion in Customers and MFG
Strategic Expansion in Customers and MFG • TW site support • Phase1: TW site support • Phase2: US site local supply New customers Customers’ oversea site Phoenix Silicon International Corporation Confidential 16
Slide 18: WW No.1 Lights out Wafering Fab
WW No.1 Lights out Wafering Fab 100 40 15 5 2021 2023 2025 2027 Picture: PSI Phoenix Silicon International Corporation Confidential 17
Slide 19: WW No.1 Wafering Fab Capacity
WW No.1 Wafering Fab Capacity 12 20 30 +60 2023 2025 2027 Tbd building 2 Picture: PSI Phoenix Silicon International Corporation Confidential 18
Slide 20: Thinning Business Line
Thinning Business Line Focus on non-China high added valued Next generation focus on SiC and 12”
Slide 21: 8" Foundry Capacity in Turbulence
8” Foundry Capacity in Turbulence Company TSMC 2020 580 2021 580 2022 580 2023E 580 2024F 580 2025F 580 2026F 580 China accountant for 29% UMC 322 329 341 354 354 354 354 8” Foundry Capacity Samsung 250 250 250 260 270 275 290 3000 30% SMIC 249 318 358 396 396 396 396 Vanguard 243 252 270 287 303 31
Slide 22: Power Semi Game Changing
Power Semi Game Changing ⚫ Supply & Demand in short term OOC • Over supply remained till 2024 Performance • Price disruption in China ⚫ Geopolitical factors in long term Price • Trade deficit drives CN semi localization CN • Chip/Cold war creates separate supply chain Phoenix Silicon International C
Slide 23: SiC Era's Booming
SiC Era’s Booming WW Sales SiC is Surging SiC to take lead ‘27-’30 SiC 8” MP Ready Now USD M 6,000 𝐶𝐴𝐺𝑅22−26 33.7% 5,000 4,000 ~55% 3,000 ~45% 2,000 ~55% ~45% 1,000 75% - 2021 2022 2023E 2024F 2025F 2026F 2021 2027F 2030F Si SiC GaN 4” 6” 8” Source: Digitimes, Infineon, Yole Phoenix Silicon…
Slide 24: PSI's Thinning & Transforming
PSI’s Thinning & Transforming Thinning & Transforming Strategies • Product focusing on AI & ATV • Non-China customers centric • SiC supply chain forming in Taiwan • 12” thinning surging from 2024 Phoenix Silicon International Corporation Confidential 23
Slide 25: ESG Subject Update
ESG Subject Update
Slide 26: Green Manufacturing Goal
Green Manufacturing Goal 2021 2022 2023 2024 PFCs Energy efficiency Tap water -5% VOCs efficiency ≧ 92% decreased > 10% saving 1% Wastewater -5% VOC emission -3% Phoenix Silicon International Corporation Confidential 25
Slide 27: PSI ESG Report Plus TCFD
PSI ESG Report Plus 2024 TCFD Phoenix Silicon International Corporation Confidential 26
Slide 28: Key Takeaways
Key Takeaways • Global recovery remains slow: 2H24 is expected to outperform the 1H24, projected 1H:2H is 35:65 • PSI has been prepared to participate in Advanced node & 3D-IC packaging plus Compound Semi • PSI, part of recycling economics, will focus on resource saving and climate change impact • P
Slide 29: Thank you
Thank you
Phoenix Silicon International — Non-Deal Roadshow (December 2023) on 6ix