Chang Wah Technology Co., Ltd. · TPEX:6548
Chang Wah Technology — Investor Presentation (May 2022)
29 slides from Chang Wah Technology's investor presentation, May 19, 2022
Slide 1: Investor Presentation – IR
CWTC (6548 TT) Investor Presentation – IR Manager Mr. Richie Su (Tel：+886-2-87510696 Ext.206) CWE-IR@cwei.com.tw 1
Slide 2: Forward-looking Statement
Forward-looking Statement Information included in this press release that are not historical in nature are "forward looking statements“. CWTC cautions readers that forward looking statements are based on CWTC’s reasonable knowledge and current expectations and are subject to various risks and uncert
Slide 3: A Leading Lead Frame (LF) Solution Expert
A Leading Lead Frame(LF) Solution Expert Ticker: 6548 TT Market Cap (Mar. 31st, 2022): US$1.35bn Client Scope: Outsourcing Semiconductor Assembly & Testing (OSAT), Integrated Device Manufacturers (IDM) and IC Design 30+ years LF experience Pre- US$447mn 2021 Total sales mold Others QFN 5% Disc
Slide 4: Target to Increase Market Share
Target to Increase Market Share 2020E Global LF market shares* Through diversity in LF products and manufacturing process, early and Mitsui disciplined LF investment, CWTC will efficiently expand its capacity to High-tec, 12% pursue sustainable growth. CWTC targets to increase market share. CWTC 1
Slide 5: Our Execution Plan
Our Execution Plan QFP QFN aQFN Pre-mold SOT Stamping Etching Plating Molding LF Disciplined Investment Diversity 5
Slide 6: Lead Frame Diversity, Disciplined Investment, Commitments to Shareholders
Lead Frame Diversity Disciplined Investment Our Commitments to Shareholders Financial Performance 6
Slide 7: Lead Frame Diversity
Lead Frame Diversity 7
Slide 8: Our LF Diversity to Drive Future Growth
Our LF Diversity to Drive Future Growth II. Packaging Type Diversity QFN, QFP & SOP are major IC packaging type III. Manufacturing I. Application Process Strength in terms of no. of IC Diversity Self-developed Multiple applications technologies leads to our drive long-term operation efficiency semic
Slide 9: Application Diversity
Ⅰ Application Diversity 5G & WiFi Ⅲ-Ⅴ Electrified Mobility Mini LED Connectivity Semiconductor Various LF Spec. Requirement: No. of I/O, Form factor, Reliability, Thermal conductivity and Electrical performance 9
Slide 10: Packaging Type Diversity
Ⅱ Packaging Type Diversity Wafer capacity expansion fuels industry’s 9% Same with industry trend, we’ve seen growing QFP & CAGR. No. of IC will grow faster due to node QFN demand from global tier-one customers, including migration, e.g. 65/40nm to 28/22nm. IDM, OSAT and IC design. Wafer capacity - 8
Slide 11: Products Manufacturing Process
Ⅲ Products Manufacturing Process Pre-Mold Power QFP QFP QFN aQFN QFN LF Stamping Etching Etching Plating Etching Plating Plating Plating Etching Molding Post Plating Post Plating Plating Photo: CWTC and ASE & Infineon 11
Slide 12: Our Manufacturing Strength
Our Manufacturing Strength • Self-developed tool and mold support all QFP and SOP LF, enable to produce “CWTC- Stamping only” items. • High flexibility to switch different products to maximize throughput • Precise QFN half-etching technology to enhance efficiency Etching • Highly-automated, customiz
Slide 13: Our Technology Leadership
Our Technology Leadership Pre-mold QFN aQFN • No. of I/O: 100-500 • World’s leading EME-filled QFN technology • World’s leading exclusive QFN LF • Excellent thermal efficiency & rigidity • Replacing BGA • Higher throughout for IC, Mini LED back-light unit, sensor and MEMS LF Technology • TW Fab star
Slide 14: Japan & Korea Peers Gaining LF Shares / China Peers
Japan & Korea Peers Operation Efficiency Gaining LF Shares LF Technology China Peers 14
Slide 15: Disciplined Investment
Disciplined Investment 15
Slide 16: Capacity Expansion Milestone
Capacity Expansion Milestone To meet robust demand from Vehicle Electrification, 5G/WIFI, MiniLED, and III-V Semiconductor…etc., we are ramping up etching capacity from 48mn/year by 2020, to 70mn/year by 2022. By 2025, we target to expand our etching capacity toward to 130mn/year. To answer risi
Slide 17: Disciplined LF Pricing for Sustainable Growth
Disciplined LF Pricing for Sustainable Growth Mainly driven by strong demand from Automotive and Industrial applications, we’ve increased LF price since 2021 while QFP LF pricing surged more than QFN LF. As IDM orders have long life cycle, we expect existing IDM orders to maintain a stable and h
Slide 18: Our Ever-Improving ESG Performance
Our Ever-Improving ESG Performance Year over year improvement in our Sustainalytics ESG Score We expect further improvement into the medium risk category by 2022 50 45.3 45 Sustainalytics Score 42.5 Severe Risk 40 36 39 35 High Risk 33.1 30 Medium Risk 25 July-2019 January-2020 July-2020 January
Slide 19: We Pursuit Our Sustainable Growth in an Eco-friendly Approach
We Pursuit Our Sustainable Growth in an Eco-friendly Approach Environment: Reclaimed water usage reached 20.6% in 2021E vs 13.6% in 2019. 4% of electricity demand at the new factory will be supplied from solar energy Human Environment vs. existing factory of only 0.3%. Resource Social: We are
Slide 20: Our Commitments to Shareholders
Our Commitments to Shareholders 20
Slide 21: We Aim to Produce the Highest Return in the IC Manufacturing Industry
We Aim to Produce the Highest Return in the IC Manufacturing Industry Through efficient investment in capex and LF diversity, we expect to outgrow the semiconductor manufacturing industry and deliver an ROE in excess of 20% from 2021E to 2025E. Capex-to-Sales Capex 2021E-2025E Sales CAGR GP CAGR FCF
Slide 22: Financial Performance
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Slide 23: Robust Financial Performance
Growing Profitability and Attractive Shareholder Returns Robust Financial Performance Revenue (NT$million) Net profit after tax (RHS) Gross Margin (%) Operating Margin (%) 15,000 1,800 40.0 12,792 13,000 1,600 30.8 1,714 1,400 11,000 9,785 30.0 26.6 9,320 9,678 1,200 9,000 7,505 19.2 18.4 18.6 17.3
Slide 24: Income Statement Highlight
Income Statement Highlight 2016-1Q22 Income Statement YoY (%) NT$mn 2016 2017 2018 2019 2020 2021 1Q22 2017 2018 2019 2020 2021 1Q22 Revenue 1,668 7,505 9,785 9,320 9,678 12,792 3,631 350.0 30.4 -4.7 3.8 32.2 33.5 Gross Profit 219 1,444 1,802 1,581 1,805 3,406 1,122 559.6 24.8 -12.3 14.2 88.7 114.5
Slide 25: Balance Sheet Highlight
Balance Sheet Highlight 2016-1Q22 Balance Sheet YoY (%) NT$mn 2016 2017 2018 2019 2020 2021 1Q22 2017 2018 2019 2020 2021 1Q22 Total Assets 2,333 9,100 9,788 10,544 12,164 14,842 16,047 290.1 7.6 7.7 15.4 22.0 26.5 Cash 618 2,131 2,304 3,076 2,502 3,796 4,466 244.7 8.1 33.5 -18.7 51.7 73.8 AR & NR 5
Slide 26: Appendix
Appendix 26
Slide 27: What is Lead Frame (LF)?
What is Lead Frame (LF)? LF is the metal substrate inside a chip package that carry signals from the die to the outside. LF is the interface between die and PCB, communicating signal input/output (I/O). By removing material from a flat plate of copper, LF are manufactured by two major processe
Slide 28: What is QFN?
What is QFN? As one type of LF-based packaging, QFN is a small sized “near chip scale” plastic encapsulated IC package. QFN is an ideal package for IC applications where no. of I/O, size, weight, thermal and electrical performance are important. Connectivity: HPC EV IoT 5G & WIFI peripherals No.
Slide 29: Glossary
Balance Sheet Highlight Glossary SO/SOP: Small Outline and Small Outline Package TSSOP: Thin Shrink Small Outline Package TSOP: Thin Small Outline Package COL: Chip-n-Lead QFP: Quad Flat Package SQFP: Small Quad Flat Package TQFP: Thin profile Quad Flat Package LQFP: Low profile Quad
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