Win Semiconductors Corp. · TPEX:3105
Win Semiconductors — Q4 2023 Earnings Presentation
28 slides from Win Semiconductors's earnings presentation, Feb 9, 2024
Slide 1: WIN Semiconductors 4Q2023 Investor Conference
WIN Semiconductors 4Q2023 Investor Conference February 2024 WIN Semiconductors Confidential
Slide 2: Safe Harbor Notice
Safe Harbor Notice This presentation contains certain forward-looking statements that are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Except as
Slide 3: Quarterly Results & Guidance
QUARTERLY RESULTS & GUIDANCE WIN Semiconductors Confidential 3
Slide 4: Revenue & Margin Trend
Revenue & Margin Trend 4Q23 revenue was NT$4.9b, up 17% QoQ and 38% YoY. In 4Q23, driven by the increase in capacity utilization, gross margin increased by 7.3pp sequentially to 29.4% and operating margin increased by 11.4pp to 13.1%. Quarterly revenue trend Quarterly margin trend NT$M 6,000 50%
Slide 5: Earnings Trend
Earnings Trend In 4Q23, with better capacity utilization, net profit attributable to the parent company was NT$385m, compared to NT$34m in 3Q23. EPS came in at NT$0.91 for 4Q23, compared to NT$0.08 in 3Q23. NT$M Earnings & growth trend NT$ EPS 1,000 2.50 800 2.00 600 400 1.50 200 1.00 0 0.50 -200
Slide 6: Product Mix
Product Mix 4Q22 Others* 26% 4Q23 Cellular 25-30% Wi-Fi Others* 5-10% 22% Infra. 35-40% Cellular 3Q23 Wi-Fi 45-50% 5-10% Others* 18% Cellular Infra. Wi-Fi 10-15% 45-50% 20-25% * Others: Revenue not attributable to main product segments and additional Infra. revenue being consolidated in accordance w
Slide 7: Guidance
Guidance We expect 1Q24 revenue to decline low-teens QoQ. We expect 1Q24 gross margin to be around the level of mid-twenties. WIN Semiconductors Confidential 7
Slide 8: Financial Summary
FINANCIAL SUMMARY WIN Semiconductors Confidential 8
Slide 9: Consolidated Statements of Comprehensive Income - Quarterly
Consolidated Statements of Comprehensive Income - Quarterly 4Q'23 Unit: NTD Million 4Q'22 3Q'23 QoQ YoY (unaudited) Net revenue 3,531 4,165 4,868 +17% +38% Gross profit 786 919 1,433 +56% +82% Gross margin (%) 22.2% 22.1% 29.4% Operating expenses (765) (849) (794) -7% +4% Operating expenses rate (%)
Slide 10: Consolidated Statements of Comprehensive Income - YTD
Consolidated Statements of Comprehensive Income - YTD 2023Y Unit: NTD Million 2022Y YoY (unaudited) Net revenue 18,334 15,836 -14% Gross profit 4,725 3,469 -27% Gross margin (%) 25.8% 21.9% Operating expenses (3,241) (3,525) +9% Operating expenses rate (%) -18% -22% Operating income (loss) 1,484 (56
Slide 11: Non-operating Items
Non-operating Items 4Q'23 2023Y Unit: NTD Million 4Q'22 2022Y (unaudited) (unaudited) Foreign exchange gains (losses) (255) (68) 254 (846) Gains (losses) on disposals of property, plant and (226) (1) (190) (19) equipment Gains on repurchase of bonds payable 241 104 601 817 Gain (losses) on financial
Slide 12: Consolidated Balance Sheets
Consolidated Balance Sheets 2023/12/31 2022/12/31 2023/9/30 (Unit: NTD Million) Major Item (unaudited) $ % $ % $ % Cash and cash equivalents 10,380 15% 6,352 10% 10,326 15% Current financial assets at fair value through profit or loss 121 0.2% 143 0.2% 143 0.2% Notes and accounts receivable, net 917
Slide 13: Market Outlook
MARKET OUTLOOK WIN Semiconductors Confidential 13
Slide 14: Ubiquitous AI Access
The Megatrend Ubiquitous AI Access 3D Holographic Teleoperation Autonomous Vehicle True Smart City Meeting & UI Surgery & Vehicle >10X Devices Connected/area WIN Semiconductors Confidential 14
Slide 15: Rapidly Increased Global Data Traffic
Rapidly Increased Global Data Traffic To increase data transmission capacity: 1. Increase number of devices; and 2. Improve performance of devices (spectrum efficiency) 3000 1 EB=1 billion GB 2500 2443 568 Enterprise & Others 2000 EB / Month 468 Consumer Mobile 1500 1000 507 1407 500 Consumer Fixed
Slide 16: Pivotal Elements Toward Ubiquitous AI Access
Pivotal Elements Toward “Ubiquitous AI Access” WIN’s cutting-edge III-V foundry technologies to provide critical processes toward the AIoT megatrend. Hyper Scale Inter-Chips Wi-Fi 7 B5G DC MMF Optics Optical Mobile & Router Mobile & BST AR / VR / XR 3D Sensing 800G/400G Interconnect Biometric Sensor
Slide 17: WIN Technologies
WIN TECHNOLOGIES WIN Semiconductors Confidential 17
Slide 18: Ultra-High Speed Data Transmission
Ultra-High Speed Data Transmission Driven by massive data generated by vast computing, storage, and sensing devices. Wi-Fi 7 World-Leading SAW & BAW 7th Filters Gen. HBT World Class Reliable InP RF HBT with B5G/6G GaN HEMT Cutoff Freq. technology ≥300GHz World-Leading mmWave pHEMT Satellite comm. In
Slide 19: Smart Sensing
Smart Sensing Driven by innovative applications toward a safer, environmental friendlier, and more immersive experience lifestyle for people. SWIR/NIR Back-emitting VCSEL VCSEL AR / VR / XR with Optics On-VCSEL Optics Technology 3D Sensing For Mobile devices InP-based Photodetectors (APD & PIN) Biom
Slide 20: Mass Data Computation & Storage
Mass Data Computation & Storage Driven by rapidly increased AI servers in data center and new computation technology. 100 Gbps/lane WIN pHEMT VCSEL LD/Modulator Hyper Scale Driver IC Data Center On MMF Optics 800G/400G 6” wafer InP-based InP-based Inter-Chips BH DFB LD High-speed Optical Interconnec
Slide 21: PA Content Increase in 5G Smartphones
PA Content Increase in 5G Smartphones • 5G smartphone shipments surpassed 4G in 2023. • Higher PA content in 5G smartphones compared to 4G. Smartphone Market Breakdown by Cellular Standard 20.7% 55.0% 78.8% PA volume in Smartphone 4G 4 ea 5G 6 ea LTE 5G 7 ea (+N77) 8 ea (+N77, N79) 3G 2019 2020 2021
Slide 22: Wi-Fi 7: Content Increase for GaAs-based PA
Wi-Fi 7: Content Increase for GaAs-based PA • Wi-Fi 7 data rate increased by spectrum, channel bandwidth and modulation. • GaAs provides the best performance for high linearity, high frequency and broadband applications. • External PA demand will grow with Wi-Fi 7. Wi-Fi 6 Wi-Fi 6E Wi-Fi 7 Bands 2.4
Slide 23: Satellites Enable Seamless Network
Satellites Enable Seamless Network • LEO launch and NTN for direct to cell application deployment. <6GHz pHEMT, GaN, 0.1/0.15/0.25μm HBT, GaN 0.25μm UT Cell phone Gateway PtP pHEMT, 0.15/0.1μm Infrastructure WIN Semiconductors Confidential 23
Slide 24: Strong Demand on Laser and Driver IC From AI Data Centers
Strong Demand on Laser and Driver IC From AI Data Centers • Driven by rapidly increased AI servers demand, The high speed and short range solution from VCSEL keep penetrating into DCI applications. Data Center Interconnect At Next Distance Laser Present Gen Spine 400G 800G Spine - Leaf >2km DFB/EML
Slide 25: Will be the Next Big Wave: LiDAR and DMS/OMS
Laser Light Sources for Automotive Use Will be the Next Big Wave: LiDAR and DMS/OMS • Market report estimates a strong CAGR of 62% for automotive LiDAR application. • Hybrid and pure solid-state LiDAR are becoming the mainstream technology. Semiconductor laser as the LiDAR light source will be benef
Slide 26: WIN's Strategy
WIN’s Strategy Market-leading Customers #1 III-V Foundry with Broadest Technology Portfolio World-leading & Proven III-V Technologies Serve market-leading customers with our most comprehensive world-leading and proven III-V manufacturing technologies in the fast growing markets along the megatrend.
Slide 27: Key Takeaways
Key Takeaways WIN, as the global leading III-V foundry company, provides critical process technologies to meet the AIoT megatrend. WIN possesses the broadest technology portfolio to serve major markets in wireless communication links, AI data center optical links, automotive LiDAR and broad rang
Slide 28: Q&A
Q&A For more information regarding WIN www.winfoundry.com For all inquiries, suggestions, and comments ir@winfoundry.com WIN Semiconductors Confidential 28