Phoenix Silicon International Corp. · TWSE:8028

Phoenix Silicon International — Non-Deal Roadshow (July 2023)

35 slides from Phoenix Silicon International's roadshow presentation, Jul 25, 2023

  1. Slide 1: PSI Roadshow

    PSI Roadshow 25 July 2023

  2. 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

  3. Slide 3: Agenda

    Agenda • 2H23 Macro & Semi outlook • Semi Growth Drivers • ESG • Key Takeaways Phoenix Silicon International Corporation Confidential 2

  4. Slide 4: 2H23 Macro & Semi Outlook

    2H23 Macro & Semi Outlook

  5. Slide 5: Macro Economic

    Macro Economic • Inflation leads to a decrease in real disposable income Real Nominal Source: OECD, Jun. 2023 Phoenix Silicon International Corporation Confidential 4

  6. Slide 6: US Economic

    US Economic • Consumption is lower than expected. Changes in U.S. retail sales 3.0% 2.8% 2.5% 2.0% 1.5% 1.0% 0.4% 0.5% 0.5% 0.2% 0.0% -0.5% -1.0% -0.7% -0.9% -1.5% 2301 2302 2303 2304 2305 2306 30 yrs 15 yrs Source: MacroMicro, Jul. 2023 Phoenix Silicon International Corporation Confidential 5

  7. Slide 7: China Economic

    China Economic • China deflation fears add to growth concerns CPI Core CPI 16-24 yrs unemployment rate Source: MacroMicro, Jun. 2023 Phoenix Silicon International Corporation Confidential 6

  8. Slide 8: Semi Fabless Inventory

    Semi Fabless Inventory Days Inventory Days of major Fabless 140 120 100 Average 80 Most likely 60 40 20 0 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23E 3Q23E 4Q23E Source: Bloomberg, Mizuho Phoenix Silicon International Corporation Confidential 7

  9. Slide 9: Foundry UTR

    Foundry UTR • Slowing demand of automotive recently • Back to upcycle in 1H24 115% 95% 75% 55% 35% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23E 3Q23E 4Q23E 1Q24F 2Q24F 3Q24F 4Q24F 8" 12" Source: company data, Research institution Phoenix Silicon Internat

  10. Slide 10: Semi Growth Drivers

    Semi Growth Drivers

  11. Slide 11: Return To Expansion Cycle

    Return To Expansion Cycle USD M Driven by AI (Data processing) & Smart EV (Automotive) 800,000 25% 700,000 18.5% 20% 600,000 15% 13.4% 500,000 10% 400,000 2.8% 5% 2.5% 300,000 0.2% 0% 200,000 -5% 100,000 -10% -11.2% - -15% 2022 2023E 2024F 2025F 2026F 2027F Automotive Communication Consumer Data Pro

  12. Slide 12: High Computation And Efficiency Continuing

    High Computation And Efficiency Continuing Demand EU final approval to become law to ban sale of CO2- emitting cars by 2035 Technology Regulation Eu: Efficiency requirement from 94% to 96% USA: Data center efficiency improvement Source: Company data, EU Phoenix Silicon International Corporation Conf

  13. Slide 13: AI Chip Market Size

    AI Chip Market Size 𝐶𝐴𝐺𝑅22−26 USD Bn Edge Central 29.7% 250 200 150 100 50 0 2022 2023E 2024F 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F Source : Precedence Research, January 2023 Phoenix Silicon International Corporation Confidential 12

  14. Slide 14: Smart EV – 4C

    Smart EV – 4C Chips Center console Charger Connectivity Picture: NSPE Phoenix Silicon International Corporation Confidential 13

  15. Slide 15: Semiconductor Content 10x Increasing

    Semiconductor Content 10x Increasing 2,000 chips 1,502 bn USD • Sensor 275% • EV/HEV 214% • ATV HPC 1,500% 200 chips 151 bn USD ICE, L1, Smart EV, L3~4, 2021 2030 2021 YR 2030 YR Source: Tier.org(台經院) Phoenix Silicon International Corporation Confidential 14

  16. Slide 16: Wafering Business Line

    Wafering Business Line Reclaim primarily driven by the increasing in advanced processes Test wafer growing, due to the usage of carrier wafers in SoIC

  17. Slide 17: Advanced Node: Major Growth Driver

    Advanced Node: Major Growth Driver Advanced node K wpm 𝑪𝑨𝑮𝑹𝟐𝟐−𝟐𝟔 14.3% 2021 2022 2023E 2024E 2025E 2026E Mature node Advanced node Source: Research institution Phoenix Silicon International Corporation Confidential 16

  18. Slide 18: Reclaim Major Players’ Capacity

    Reclaim Major Players’ Capacity 12” capacity High grade No.1 2024 600 660 630 620 +35.2% 2021 390 460 0 500 1000 1500 2000 2500 PSI RST KINIK Hamada Mimasu Scientech K wpm Source: PSI, RST, company data Phoenix Silicon International Corporation Confidential 17

  19. Slide 19: Raw Wafer: Supply > Demand

    Raw Wafer: Supply > Demand 10,000 10% 9,000 8% 8,000 7,000 6% 6,000 5,000 4% 4,000 2% 3,000 2,000 0% 1,000 0 -2% 2021 2022 2023F 2024F 2025F Supply Demand S/D (% +over/-under) Source: Company data, Sumco, UBS Phoenix Silicon International Corporation Confidential 18

  20. Slide 20: Entry Strategy

    Entry Strategy Prime wafer General Spec. thickness 775+/- 15um Test wafer Si Interposer Special requirement PSI Ingot thickness 770+/- 2um Carrier wafer Phoenix Silicon International Corporation Confidential 19

  21. Slide 21: Market Size – Si Interposer & Carrier wafer

    Market Size – Si Interposer & Carrier wafer • Carrier wafer includes CIS BSI & BSPD • Si interposer major for 2.5, 3D packaging and SoIC (SoIC not include in this chart) Kwpm 250 𝐶𝐴𝐺𝑅22−26 100% 16.1% 200 80% 150 60% 100 40% 50 20% - 0% 2021 2022E 2023F 2024F 2025F 2026F 2021 2022E 2023F 2024F…

  22. Slide 22: Thinning Business Line

    Thinning Business Line Power discrete/ Sic benefit from the growth of EVs 12” thinning application is larger, due to advanced packaging & SoIC

  23. Slide 23: Power Discrete: Continuing Growth

    Power Discrete: Continuing Growth Overall 𝑪𝑨𝑮𝑹𝟐𝟐−𝟐𝟔 USD B 12.6% 2022 2023E 2024F 2025F 2026F Auto Communication Computer Consumer Industrial Renewable Source: WSTS, Gartner Phoenix Silicon International Corporation Confidential 22

  24. Slide 24: BEV Semi Content Growth

    BEV Semi Content Growth M units 100 30% L3~L4 semi content scenario $ 1500 Drivetrains power semis 25% • Inverter • BMS • DC-DC 80 • OBC • Auxiliaries • DC-DC 20% Including 60 • More KW per vehicle 15% • Higher SiC/ GaN penetration 40 10% Non-drivetrains semis • ADAS/AD 20 • Standard safety 5% • Pre

  25. Slide 25: SiC: Thinning Process Next Step

    SiC: Thinning Process Next Step WW Sales SiC SiC to take lead in the 2027-2030 SiC power device market share USD M 6,000 Mitsubishi 2% 5,000 𝐶𝐴𝐺𝑅22−26 others 5% 33.7% Onsemi 7% 4,000 ~55% ROHM STM 10% 3,000 ~45% 40% Wolfspeed 2,000 14% ~55% ~45% 1,000 Infineon 22% 75% - 2021 2022 2023E 2024F…

  26. Slide 26: More Than Moore

    More Than Moore Chiplet and advanced packaging complement each other. More than Moore Systemic complexity Moore’s Law Scale complexity Time Source: Synopsys Phoenix Silicon International Corporation Confidential 25

  27. Slide 27: 12” Thinning Generating Revenue From 2024

    12” Thinning Generating Revenue From 2024 • DC-AC IC & pass devices thinning process AI Pass I/O DC-AC Comm. IC devices XPU Source: TSMC, MITI, company data Phoenix Silicon International Corporation Confidential 26

  28. Slide 28: Finance

    Finance 27

  29. Slide 29: Revenue And Gross Profit

    Revenue And Gross Profit NTD K Growing in sync with Qtr revenue GM% our customers 1,000,000 30% 900,000 25% 800,000 700,000 20% 600,000 500,000 15% 400,000 10% 300,000 200,000 5% 100,000 0 0% 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 Phoenix Silicon International Corporation C

  30. Slide 30: EBITDA & EPS

    EBITDA & EPS NTD K EBITDA EBITDA% 1,200,000 35% 32.1% 32.1% 2.51 31.1% 30% 1,000,000 29.6% 29.4% 2.17 25.5% 25% 1.87 800,000 1.68 20% 600,000 1,006,301 15% 1.02 400,000 823,347 849,949 10% 627,840 622,322 200,000 0.4 5% 250,315 0 0% 2018 2019 2020 2021 2022 23Q1 2018 2019 2020 2021 2022 23Q1 Phoenix

  31. Slide 31: ESG

    ESG 30

  32. Slide 32: 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 31

  33. Slide 33: PSI ESG Report

    PSI ESG Report Phoenix Silicon International Corporation Confidential 32

  34. Slide 34: Key Takeaways

    Key Takeaways • In near term, PSI and most others are facing uncertainty from China economy recovery. Despite inventory will digest away in 1-2 quarters, the shadow of on-time picking demand still exists . • PSI, looking ahead, has been prepared in advance to catch the opportunity to be brought by A

  35. Slide 35: Thank you

    Thank you

Phoenix Silicon International — Non-Deal Roadshow (July 2023) on 6ix