Chang Wah Technology Co., Ltd. · TPEX:6548
Chang Wah Technology — Investor Presentation (2021)
29 slides from Chang Wah Technology's investor presentation, Oct 8, 2021
Slide 1: 2021 Investor Presentation
2021 Investor Presentation Canon Huang, Chairman of CWTC (6548 TT) 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 LF Solution Expert Covering All Applications
A Leading LF Solution Expert Covering All Applications ◼ Ticker: 6548 TT ◼ Market Cap (July 31th, 2021): US$1.3bn ◼ Taiwan No.1 and Global Top 2 IC Lead Frame (LF) Supplier ◼ Client Scope: Outsourcing Semiconductor Assembly & Testing (OSAT), 30+ years Lead frame experience Integrated Device Manufact
Slide 4: Target World's No.1 LF Supplier in Five Years
Target World’s No.1 LF Supplier in Five Years 2020E Global LF market shares* ◼ Through QFN reinvention, CWTC will efficiently expand its capacity to Mitsui pursue sustainable growth. With estimated 5-year sales CAGR 20%, High-tec, 12% CWTC targets to become the world's largest IC LF supplier with 30
Slide 5: QFN Reinvention, Sustainable Growth, Our Commitments, Financial Performance
QFN Reinvention Sustainable Growth Our Commitments to Shareholders Financial Performance 5
Slide 6: QFN Reinvention
QFN Reinvention 6
Slide 7: What is LF?
What is 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 processes: etching (f
Slide 8: 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 9: We Reinvented QFN to Drive Our Future Growth
We Reinvented QFN to Drive Our Future Growth I. II. IV. III. Packaging Manufacturing Client Application Type Process Service Reinvention Reinvention Reinvention Reinvention QFN would be the top 1 Self-developed technologies The most competitive TW, CN and MY fabs to IC packaging type in leads to our
Slide 10: I. Packaging Form Reinvention
I. Packaging Form Reinvention “QFN was invented in 1998. Now CWTC have reinvented QFN and expect it to dominate IC LF packaging since 2021.” - Canon Huang, CWTC Chairman 10
Slide 11: QFN is the Answer for All IC LF Packaging
QFN is the Answer for All IC LF Packaging QFN is the best IC LF platform for higher I/O, smaller form factor, better thermal conductivity and faster electrical signal transmission. QFP SOIC CABGA 3.93 mm SOT/SC MQFP LQFP 2.33 mm TSOP 1.6 mm TSOP TQFP TSSOP QFN 1.2 mm 1.1 mm 0.9 mm 0.8 mm 0.5 mm 0.3
Slide 12: The Number of QFN-Packaging IC is Increasing
The Number of QFN-Packaging IC is Increasing Same with industry trend, we’ve seen more global tier-one customers adopting QFN as their preferred IC packaging type, replacing SO, BGA and QFP. No. of IC in mn SO QFN BGA & QFP WLP& FC-CSP & FC-BGA 300,000 250,000 200,000 150,000 100,000 50,000 0 2018 2
Slide 13: II. Manufacturing Process Reinvention
II. Manufacturing Process Reinvention “By reinvent QFN manufacturing, we define industrial specification to meet clients demand in the most efficient manner.” - Canon Huang, CWTC Chairman 13
Slide 14: We Plan to Dominate QFN with Manufacturing Advantages
We Plan to Dominate QFN with Manufacturing Advantages • Precise QFN half-etching technology to enhance efficiency • Highly-automated, customized and flexible etching tools to share with QFP LF lines Increase Etching • No stamping tool cost and high copper utilization than QFP LF 33+% • Industry lead
Slide 15: III. Application Reinvention
III. Application Reinvention “We’re ready to meet strong demand from 5G, EV, HPC/IoT and Mini LED. Our Full QFN product portfolio cover 80% of IC I/O requirement.” - Canon Huang, CWTC Chairman 15
Slide 16: We Reinvent QFN for Various Applications
We Reinvent QFN for Various Applications Connectivity: 5G & WIFI High-Performance PC (AI) Peripherals Electric Vehicle (EV) Industrial (IoT) Mini LED 16
Slide 17: Full QFN Solutions Covering More than 80% of IC Applications
Full QFN Solutions Covering More than 80% of IC Applications 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 a
Slide 18: IV. Client Service Reinvention
IV. Client Service Reinvention “Our Taiwan, China and Malaysia factories provide real-time services for global tier-one IC design, OSAT and IDM customers.” - Canon Huang, CWTC Chairman 18
Slide 19: We Have the Most Extensive Client Coverage
We Have the Most Extensive Client Coverage Our Asia factories are at the hub of global semiconductor supply chain. We provide industry-leading IC LF to serve more than 50 global tier-one clients. IC Design Taiwan OSAT China Malaysia IDM 19
Slide 20: Sustainable Growth
Sustainable Growth 20
Slide 21: Our Capacity Expansion Leads to Market Share Gain
Our Capacity Expansion Leads to Market Share Gain ◼ QFN capacity: we plan to expand QFN capacity from 18mn units/year, 2020, to more than 130mn units/year, 2025. ◼ Increasing market share: we target to increase CWTC’s QFN market share from 10% in 2020 to 30% in 2025 while our LF market share would i
Slide 22: We Pursuit Our Sustainable Growth in an Eco-friendly Approach
We Pursuit Our Sustainable Growth in an Eco-friendly Approach ◼ Environment: Increasing recycled water usage from 13.6% in 2019 to 16% in 2021E. ◼ Green Energy: 4% electricity of new factory will come from solar energy vs. existing factory only 0.3%. Human Environment Resource ◼ Social: We committed
Slide 23: Our Commitments to Shareholders
Our Commitments to Shareholders 23
Slide 24: 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 QFN reinvention, we expect to outgrow the semiconductor manufacturing industry and deliver an ROE in excess of 20% from 2021E to 2025E. Capex-to-Sales Capex 2020E-2025E Sales CAGR GP CAGR
Slide 25: Financial Performance
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Slide 26: Robust Financial Performance
Growing Profitability and Attractive Shareholder Returns Robust Financial Performance Revenue (NT$million) Net profit after tax (RHS) Gross Margin (%) Operating Margin (%) 9,785 9,678 40.0 10,000 9,320 1,000 843 30.8 7,505 774 8,000 800 30.0 607 5,791 21.0 6,000 600 431 19.2 18.4 18.6 549 20.0 16.5
Slide 27: Income Statement Highlight 2015-1H21
Income Statement Highlight 2015-1H21 Income Statement YoY (%) NT$mn 2015 2016 2017 2018 2019 2020 1H21 2016 2017 2018 2019 2020 1H21 Revenue 378 1,668 7,505 9,785 9,320 9,678 5,791 340.8 350.0 30.4 -4.7 3.8 26.1 Gross Profit 117 219 1,444 1,802 1,581 1,805 1,219 87.7 559.6 24.8 -12.3 14.2 55.9 Opera
Slide 28: Balance Sheet Highlight 2015-1H21
Balance Sheet Highlight 2015-1H21 Balance Sheet YoY (%) NT$mn 2015 2016 2017 2018 2019 2020 1H21 2016 2017 2018 2019 2020 1H21 Total Assets 809 2,333 9,100 9,788 10,544 12,164 13,412 188.2 290.1 7.6 7.7 15.4 16.5 Cash 246 618 2,131 2,304 3,076 2,502 2,887 151.4 244.7 8.1 33.5 -18.7 -13.2 AR & NR 135
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