Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Investor Day (June 2022)
67 slides from Be Semiconductor Industries's investor day presentation, Jun 15, 2022
Slide 1: Capital Markets Day Presentation
CAPITAL MARKETS DAY PRESENTATION June 15, 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements about management's future expectations, plans and prospects of our business that constitute forward-looking statements, which are found in various places throughout the presentation, including, but not limited to, statements relating to exp
Slide 3: Agenda
Agenda I. Strategic Overview Richard Blickman II. Assembly Market Trends Ruurd Boomsma III. End User Trends Chris Scanlan IV. Mainstream Die Attach Christoph Scheiring V. Wafer Level Assembly Peter Wiedner VI. Packaging/Plating Jeroen Kleijburg VII. Q&A Besi Team June 15, 2022 3
Slide 4: I. Strategic Overview
I. STRATEGIC OVERVIEW Richard Blickman CEO June 15, 2022 4
Slide 5: CEO Summary
CEO Summary Besi surpassed goals in current cycle • Revenue and orders of € 749 MM and € 940 MM • Peer leading net margin 38%, ROI 57% • Virtually all from Engine 1 advanced packaging portfolio • Growth from new product innovation, new mobile product cycle and increased market share Inflection point
Slide 6: CEO Summary-Continued
CEO Summary-Continued Engine 2 formed to capitalize on wafer level assembly potential • Hybrid Bonding gateway to new 3D chiplet structures and devices • Actively pursued by leading front end players • Facilitates growth for all advanced assembly process technologies • First mover advantage Drivers
Slide 7: Structural, Through Cycle, Revenue and Gross Margin Growth Continues
Structural, Through Cycle, Revenue and Gross Margin Growth Continues € millions Revenue Gross Margin Gross Margin 900 70% 805 800 60% 58.0% 700 51.1% +73% 50% 600 500 39.5% 516 40% 593 34.1% 424 400 30% 4 year 379 300 averages 302 351 20% 200 164 10% 100 191 0 0% 2006 2007 2008 2009 2010 2011 2012 2
Slide 8: Besi Addressable Market Share Increasing Particularly in Key Die Attach Markets
Besi Addressable Market Share Increasing Particularly in Key Die Attach Markets 2016 2017 2018 2019 2020 2021 ∆ ‘21/‘20 ∆ ‘21/’16 Assembly Market ($MM) 3,587 4,648 4,546 3,186 3,843 6,522 +69.7% +81.8% Besi Market Share 9.9% 12.7% 11.2% 10.1% 10.7% 11.9% +1.2pts +2.0pts Addressable Market ($MM) 1,50
Slide 9: Leader in Addressable Market, Die Attach Market and Advanced Die Placement
Leader in Addressable Market, Die Attach Market and Advanced Die Placement Die Attach Advanced (82% of Revenue) Die Placement** Other 25% Besi 2021 Addressable Market* $1.5 Billion 42% $400 Other Million 58% Besi 75% Besi 33% $2.4 Billion Packaging & Plating (18% of Revenue) Other Besi 67% 15% $826
Slide 10: Strong Financial Base to Support Next Phase of Besi's Growth
Strong Financial Base to Support Next Phase of Besi’s Growth 800 Cash and Deposits Net Cash 696.6 700 672.2 Besi’s liquidity base has expanded: 598.7 • Cash grew by 64.6% 2019/2021 600 • Strong cash flow generation • Cash flow from operations was 37% 500 of revenue in 2021 • Attractive financings €
Slide 11: Commitment to Shareholder Value. €1.2 Billion Returned to Shareholders Since 2011
Commitment to Shareholder Value. €1.2 Billion Returned to Shareholders Since 2011. ~25% of Cumulative Revenue 350 Dividends Share Repurchases 296.9 300 27.4 • Record shareholder 250 distributions in 2022 209.5 • Share repurchases 200 35.5 179.5 increased from € 15 - € 25 167.1 million per quarter in
Slide 12: Strategic Initiatives 2022
Strategic Initiatives 2022 Revenue Growth Initiatives Production/Supply Chain • Supply chain management top priority Engine 1 Engine 2 • Ramp HB production. Reduce lead times • New 125,000 sq ft. Malaysian facility to expand Next gen high end Increase engagement capacity smart phones features top lo
Slide 13: Stable Quarterly Revenue and Gross Margin Development Past Quarters
Stable Quarterly Revenue and Gross Margin Development Past 4 Quarters. Initiatives Keep Opex in Check Despite Increased R&D Revenue, Orders and Gross Margin Baseline Operating Expenses 60.0% 350 85% 327 39.9 80% 40.0 300 50.0% Book/Bill 2.3x 0.9x 1.0x 1.2x 1.0x 75% 34.9 33.6 9.4 250 226 40.0% 70% 20
Slide 14: Significant Industry Cross Currents Limit Near Term Visibility
Significant Industry Cross Currents Limit Near Term Visibility H1-22 growth has continued: • High Performance Computing • Automotive • Capex spending plans of leading semi producers • 47 new fabs coming online in next three years • Many focus on advanced packaging • 2023 High End Smart Phone Cycle??
Slide 15: Business Model Objectives
Business Model Objectives Revenue € 1 billion+++ Addressable Market Share 40%+ Gross Margin 58%-62% Net Margin 35-40+% Headcount Split 80% Asia/20% Europe/NA Scope 1 and 2 Emissions 60% reduction Global Energy Needs 65% from renewable sources June 15, 2022 15
Slide 16: II. Assembly Market Trends
II. ASSEMBLY MARKET TRENDS Ruurd Boomsma Chief Technology Officer June 15, 2022 16
Slide 17: Semiconductor Growth is Accelerating Into Big Data & AI Era
Semiconductor Growth is Accelerating Into Big Data & AI Era $500 B sales over past ~50 years → $1.4T sales over next 10 years 1400 2030 Semi revenue > Projected Growth 2020-2030E 1200 $1 trillion 2020 2030 CAGR 1000 2018 Non- Machine generated data > $235B $678B 11.2% Memory human generated data 800
Slide 18: Industry Upturn Levelling Off in H1-22
Industry Upturn Levelling Off in H1-22 Source: Tech Insights, June 2022 June 15, 2022 18
Slide 19: Semi Capex Expected to Increase 23% in 2022 to Reach $183.4 Billion
Semi Capex Expected to Increase 23% in 2022 to Reach $183.4 Billion 200.0 TOP IDM & FOUNDRY CAPEX SPENDERS 180.0 IDM & Foundry Capex ($B) CAGR (Capital expenditures by company, $B, ranked by 2022 Forecast) 19.7 160.0 2018 2019 2020 2021 2022F 29.0 140.0 13.5 TSMC 10.5 14.9 17.2 30.0 44.0 +5.2% 120.0
Slide 20: Capex Spending Plans by Leading Producers to Increase in 2022
Capex Spending Plans by Leading Producers to Increase in 2022 $98.4 Billion Direct and $164.4 Billion Indirect Spending/Annum Planned TechInsights June 2022 Date Amount $ Timing $ p.a. Location Purpose Direct Investments TSMC Mar 2021 100.0B 3 years (2023) 33.0B Taiwan/AZ Advanced packing capacity a
Slide 21: Assembly Equipment Forecast
Assembly Equipment Forecast 8.0 7.2 80% Market Size YoY Growth Rate 69.7% 7.2 7.0 6.5 60% 6.0 4.5 4.5 40% 5.0 US$ billions 25.6% 3.8 4.0 3.2 20% 20.6% 10.8% 3.0 1.0% -0.1% 0% 2.0 -20% 1.0 -29.9% 0.0 -40% 2017 2018 2019 2020 2021E 2022E 2023E Source: Tech Insights, June 2022. Assembly equipment reven
Slide 22: Assembly Capital Intensity Rebounded in 2021
Assembly Capital Intensity Rebounded in 2021 8000 16.0% Assembly % Total Equipment Source: VLSI June 2022 (ex-Service) Excludes hybrid bonding 7000 7,229 14.0% 5 year avg. 6.2% 7,222 10 year avg. 7.5% 6,522 6000 12.0% 12.0% 20 year avg. 8.5% 11.6% 5000 10.0% 10.0% 10.0% 9.1% 9.6% 9.2% 9.1% 9.7% 8.7%
Slide 23: Growth Expected to Favor Besi's Product Portfolio, Particularly Die Attach
Growth Expected to Favor Besi’s Product Portfolio, Particularly Die Attach 8,000 CAGR (2020-2023) Die Attach 31.9% 7,229 7,222 7,000 Packaging & Plating 21.4% 6,522 Other Assembly 20.3% 1,937 2,093 6,000 Total 23.4% 1,548 Besi 5,000 880 Addressable 879 $ millions 826 Market 3,844 4,000 911 3,000 491
Slide 24: III. End User Trends
III. END USER TRENDS Chris Scanlan SVP Technology June 15, 2022 24
Slide 25: Besi Principal End User Markets
Besi Principal End User Markets Mobile Internet (39%) Computing (21%) Automotive (13%) Industrial/Other (10%) 5G Ramp Underway Digital Society Accelerating Electrification & Automation Energy Efficient/Green Lidar ALL CONNECTED IN MANY DIFFERENT WAYS Electrification Percentages based on Besi’s 2021
Slide 26: Key End User Application Drivers
Key End User Application Drivers Projected growth requires more semiconductor content with new, highly integrated packaging solutions Data Center Web 3 5G Rollout EVs Artificial Intelligence Pervasive Connectivity mmWave → 6G Autonomous Driving June 15, 2022 26
Slide 27: Computing is One of Besi's Fastest Growing End Markets
Computing is One of Besi’s Fastest Growing End Markets Growth of cloud infrastructure investment continues Compute fastest growing foundry segment through 2025 • Driven by exponential growth of information created, • Compute overtook mobile segment in 2021 captured, copied and consumed • Foundry gro
Slide 28: Slowing of Moore's Law Drives Adoption of Chiplet Architectures
Slowing of Moore’s Law Drives Adoption of Chiplet Architectures and New Assembly Solutions Problem Solution • Moore’s Law is slowing • Split the SoC into multiple, smaller chiplets • Some functions don’t shrink as node sizes reduce • Optimize scale per function • Connect chiplets within the package
Slide 29: New 3D Chiplet Structures Use Variety of Advanced Assembly Processes
New 3D Chiplet Structures Use Variety of Advanced Assembly Processes 1 2 3 3D Chiplet 5 Chiplet 4 Hybrid Bond Chiplet Bridge Die Interposer 6 Bridge Die Package Substrate 1 2 3 4 5 6 Chip to Wafer TCB Hybrid Bonding High Bandwidth Embedded Bridge Wafer Level HD Interposer to Memory Stacking Die Atta
Slide 30: Why is Hybrid Bonding Important?
Why is Hybrid Bonding Important? Direct Cu-Cu Interconnect Ultra-High Bandwidth & Speed Eliminates need for interposer Results in smaller, thinner form factor Contact density increased by factor of 1000x by eliminating solder balls, & solder balls to design more complex devices reducing distance bet
Slide 31: AMD Shipping First CPUs Using Hybrid Bonding
AMD Shipping First CPUs Using Hybrid Bonding Ryzen CCD with 3D V-Cache EPYC Milan X Ryzen™ 7 5800X3D • Additional 64 MB SRAM stacked atop • First product with 3D V-Cache • Gaming processor with a single Ryzen Ryzen chiplets using hybrid bonding • 8 Ryzen CCD chiplet assemblies CCD chiplet + custom I
Slide 32: New Chiplet Architectures Increase Process Steps/Capital Intensity
New Chiplet Architectures Increase Process Steps/Capital Intensity 2017 2019 2022 1st Gen EPYC 2nd Gen EPYC 3rd Gen EPYC 4 flip-chip placement steps 9 flip-chip placement steps > 30 die placement steps including hybrid and flip-chip Source: AMD June 15, 2022 32
Slide 33: New Process Technology: Embedded Bridge Die Attach
New Process Technology: Embedded Bridge Die Attach Stitching Together Processor Chips with Wafer Level Fan-out Bridges First embedded fan-out bridge devices/assembly systems introduced in Q1 2022 Multiple customers developing (AMD, TSMC, Intel, Amkor, ASE, SPIL, Deca) Molded Fan-out Interposers AMD
Slide 34: What's Next: Si Photonics
What’s Next: Si Photonics Si Photonics market forecast to grow by 28% CAGR (2021 – 2027)* Optical Transceivers Co-Packaged Optics Wearables and Sensors • Assembly of lasers, photodiodes, • Optical chiplets brings fiber to the • New photonic based bio sensors sub-assemblies package substrate • Besi h
Slide 35: Mobile: Increasing 5G Adoption is Primary Growth Driver
Mobile: Increasing 5G Adoption is Primary Growth Driver Will Generate New Smartphone Applications and Features 5G rollout is progressing, still mid-cycle adoption rates Mobile data traffic is growing rapidly • mmWave 5G deployment and 6G research in progress • Growth in new features and functionalit
Slide 36: What's Next in Mobile
What’s Next in Mobile mmWave 5G → 6G 3DIC for Application Processor AR Glasses • Deployment of mmWave small • More functions like AI to be • In development by all top cells and smart repeaters integrated in the AP chip consumer electronics players • Next generation RF SiPs with • Facing Moore’s Law
Slide 37: Automotive: Growth of EV and Autonomous Driving Will Increase Semiconductor Content
Automotive: Growth of EV and Autonomous Driving Will Increase Semiconductor Content and Cost per Car Majority of cars produced by 2030 will have an EV drive train Almost all will have some level of autonomous driving IDC Automotive Semi Market Forecast ($ bn) Semiconductor content per car is increas
Slide 38: Advances in Power Device Packaging for Vehicle Electrification
Advances in Power Device Packaging for Vehicle Electrification SiC replacing IGBTs in high power conversion GaN MOSFETs highest frequency power switching Increased power efficiency results in longer EV range 50% smaller onboard chargers and DC/DC converters Source: Cree Source: Wolfspeed Source: GaN
Slide 39: Autonomous Driving Will Drive Growth in Both Advanced and Legacy Packages
Autonomous Driving Will Drive Growth in Both Advanced and Legacy Packages Higher levels of driving automation Using more cameras and sensors 60% of new cars to have partial automation by 2030 Camera Lidar Radar Tx/Rx Source: ST Source: mzwmotor.com Source: NXP Source: Voestalpine Requiring more edge
Slide 40: Besi Well Positioned to Capture Next Generation Opportunities
Besi Well Positioned to Capture Next Generation Opportunities Multiple long term drivers for secular growth • Computing: Big data, AI, edge computing, photonics • Mobile: Continued roll-out of 5G, wearables, and deployment of mmWave 5G • Automotive: EV and autonomous driving Slowing of Moore’s Law d
Slide 41: IV. Mainstream Die Attach
IV. MAINSTREAM DIE ATTACH Christoph Scheiring Senior VP Die Attach June 15, 2022 41
Slide 42: Industry Leading Die Attach Equipment Portfolio
Industry Leading Die Attach Equipment Portfolio Multi-Module Attach Epoxy Die Attach • 2100 hS • 2200 evo • 2100 hS i • 2200 evo plus • 2100 sD advanced i • 2200 evo hS • 2100 hS ix Q4’21 • 2200 evo advanced • 2200 evo hf Q1’22 Flip-Chip Soft Solder Die Attach • 8800 FC Quantum adv / sigma • 8800 FC
Slide 43: 2200 Multi-Module Attach: Industry Leading Multi-Die Platform
2200 Multi-Module Attach: Industry Leading Multi-Die Platform Continuously Upgraded for New Applications > 6,500 Units Shipped Target Markets & Customers New Developments 2022 Increase accuracy For SiPH market (transceivers) Increase Cleanliness Achieve front-end Key competitive advantages levels fo
Slide 44: 2100 Epoxy Die Attach: Industry Leading Platform
2100 Epoxy Die Attach: Industry Leading Platform Highest Speed and Accuracy for Single Die Placement > 4,000 Units Shipped Target Markets & Customers Mobile, 5G: PA, RF front end modules, Sensors, PMIC, analog Automotive: MEMS and Sensors, Auto CIS Storage: NAND Industrial: Analog, power, MC
Slide 45: Industry Leading Flip-Chip Product Portfolio
Industry Leading Flip-Chip Product Portfolio Advanced Flip-Chip and Fan-out High Speed Flip-chip 2100 FC hS 8800 CHAMEO 8800 QUANTUM Lowest cost of ownership fcBGA, 2.5D, FOWLP fcCSP, 5G SiP, Memory FCoLf / QFN / Led / SiP • Accuracy: < 3 (1) µm • Accuracy: < 4 µm • Accuracy: < 8 µm • Throughput: 10
Slide 46: 2100 Soft Solder System
2100 Soft Solder System: Quantum Step Forward for Automotive and Industrial Applications Next Generation Soft Solder Target Markets & Customers Automotive: High Rel Power packages, SiC Industrial: All power devices, IGBT, IPM, Clip Bonding Source: Infineon Technologies Key competitive advantages
Slide 47: Die Attach Growth Opportunities
Die Attach Growth Opportunities Multi-Module Attach Mobile Epoxy Die Attach Sensing Optical MEMS / RF Tranceivers High Power Modules Advanced FC & Fan Out Soft Solder Die Attach FC Memory Auto/Industrial Power FOWLP / HPC June 15, 2022 47
Slide 48: V. Wafer Level Assembly
V. WAFER LEVEL ASSEMBLY Peter Wiedner Senior VP Sub-Micron Die Attach June 15, 2022 48
Slide 49: Portfolio of Sub Micron Accuracy Die Bonding Systems
Portfolio of Sub Micron Accuracy Die Bonding Systems for Wafer Level Logic and Memory Applications 2 3 3D Chiplet 5 1 Chiplet 4 Chiplet Hybrid Bond Bridge Die Interposer 6 Bridge Die Package Substrate 1 2 3 4 5 6 Chip to Wafer TCB Hybrid Bonding High Bandwidth Embedded Bridge Wafer Level HD Interpos
Slide 50: Three Principal Die Bonding Platforms
Three Principal Die Bonding Platforms 3D Chiplet Chiplet Hybrid Bond Chiplet Bridge Die Interposer Bridge Die Package Substrate Thermo Compression Embedded Bridge Attach Hybrid Bonding • 8800 TC advanced • 8800 CHAMEO ultra New • 8800 CHAMEO ultra plus • 9800 TC NEXT Q4’21 • 8800 CHAMEO accuracy plu
Slide 51: Next Generation TCB System Targeting C2W Applications for HPC
Next Generation TCB System Targeting C2W Applications for HPC To Be Introduced in Q4-22 9800 TCNext Target Markets & Customers Computing: HPC, Heterogeneous Integration Si interposer attach Memory: HBM stacking Key competitive advantages Key Features/Functions Both chip-to-substrate and chip-
Slide 52: Recently Introduced Embedded Bridge Die Attach System
Recently Introduced Embedded Bridge Die Attach System Critical to Power Chiplet and Other Wafer Level Architectures First Bridge Die Attach System Target Markets & Customers Shipped in Q2-22 Computing: HPC, Heterogeneous Integration Si interposer attach Key competitive advantages Based on market
Slide 53: 8800 Chameo Ultra Plus: Smaller, Integrated, Heterogeneous Chip Designs
8800 Chameo Ultra Plus: Reflects Industry Shift To Smaller, Integrated, Heterogeneous Chip Designs Leading Hybrid Die Bonding Target Markets & Customers System on Market Computing: Chiplet integration for HPC • Direct Cu-Cu Heterogeneous integration Interconnect • Design Flexibility Memory: High
Slide 54: Applications Driving Hybrid Bonding Growth
Applications Driving Hybrid Bonding Growth Logic Memory Sensors & Display Mobile June 15, 2022 55
Slide 55: Hybrid Bonding Adoption Gaining Traction
Hybrid Bonding Adoption Gaining Traction Hybrid Bonding Equipment Market Estimated 700 – 1,800 systems by 2030 Total # of installed back-end machines for hybrid bonding • Hybrid now on radar of all major semi 2000 producers 1800 High case OSATS likely Cumulative Total: € 3.0B • Not question of if, b
Slide 56: Hybrid Bonding Update Since Last Analyst Meeting
Hybrid Bonding Update Since Last Analyst Meeting Logic customers have moved to volume production: • BESI moved from proof of concept to quantity shipments • AMD’s first hybrid bonded 3D chiplet-based processor (RYZEN) commercially available • Multiple customer engagements Memory is starting proof of
Slide 57: VI. Packaging/Plating
VI. PACKAGING/PLATING Jeroen Kleijburg Senior VP Packaging June 15, 2022 58
Slide 58: Best in Class Packaging and Plating Equipment Portfolio
Best in Class Packaging and Plating Equipment Portfolio. Focused on Leading Edge Applications and Customers Substrate Molding Substrate Singulation Wafer & Panel Molding 5G and Wearables AMS-LM FSL FML • Two sided substrate molding • Substrate strip singulation • Wafer molding • Exposed die; • Sorti
Slide 59: Molding: AMS LM Substrate Molding
Molding: AMS LM Substrate Molding: Leading Exposed Die System for 5G and Complex 3D Molding Applications 350+ Systems Shipped Target Markets & Customers 5G : Advanced RF front-end modules Wearables : SiPs with intricate 3D designs Memory : Stacked Die and FC DRAM 5 Key competitive advantages N
Slide 60: FML Wafer Level Molding For Exposed Die Applications
FML Wafer Level Molding For Exposed Die Applications Including Hybrid Bonding Introduced in 2018 Target Markets Wafer level mold with exposed die Computing: Chiplet integration for HPC Heterogeneous integration Mobile: 3D Wafer level fan-out New Developments 2022 Key competitive advantages Auto
Slide 61: Singulation: FSL Stepcut Leadframe
Singulation: FSL Stepcut Leadframe: Power and SIP Packages for Automotive and Server End Users. Gaining Market Traction Singulation Target Markets Server : System in packages Automotive : SOIC and TSOP packages Memory : Stacked Die and FC DRAM 5 5G : Advanced RF front-end modules New Develop
Slide 62: Molding: AMS-X Leadframe Molding
Molding: AMS-X Leadframe Molding: Power and SIP Packages for Automotive and Industrial Market Introduced in 2021 Target Markets First systems in production Automotive: High Rel Power packages, SiC Industrial: All power devices, IGBT, IPM New Developments 2022 Key competitive advantages Improved
Slide 63: Trim & Form: Fcl-x for Power and SIP Packages
Trim & Form: Fcl-x for Power and SIP Packages for Automotive and Server Markets Target Markets 1500+ Systems Shipped Server : System in packages Automotive : IGBT, SO and TSOP packages New Developments 2022 Key competitive advantages Focus on power packages Zero defect Leadframe flipping Tieba
Slide 64: Besi's Plating and Wet Processing Systems are Industry Standards
Besi’s Plating and Wet Processing Systems are Industry Standards for Leadframe Plating Target Markets > 820 Systems Shipped Server : System in packages Automotive : SOIC and TSOP packages Solar : TOPcon and Heterojunction cells Leadframe plating line New Developments 2022 Key competitive advan
Slide 65: Packaging and Plating Growth Opportunities
Packaging and Plating Growth Opportunities Substrate AMS-LM Wafer Molding FML Leadframe Molding Trim & Form FCL Singulation FSL Plating EPL Sip Packages Wafer molding High power Industry 4.0 RF Device Automotive & Industrial • Wearables • Hybrid bonding • Autonomous driving • Zero Defects • RF Devic
Slide 66: VIII. Q&A
VIII. Q&A June 15, 2022 67
Slide 67: Investment Considerations
Investment Considerations Assembly market Long term secular Disciplined strategic Wafer level assembly ever more critical in trends drive focus has created an new growth semiconductor value advanced packaging industry leader opportunity chain growth Market presence has Tech leadership and Commitment
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