Company Profile

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World-class leading edge with MOCVD

Safe Harbor Notice

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Core Technology

MOCVD(有機金屬氣相沉積法有機金屬氣相沉積法有機金屬氣相沉積法有機金屬氣相沉積法)

- Metal Organic Chemical Vapor Deposition

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MOCVD(有機金屬氣相沉積法有機金屬氣相沉積法有機金屬氣相沉積法有機金屬氣相沉積法)

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Semiconductor(by Material)

Semiconductor

GaAs, InP, GaN, GaP, GaSb...

ElementSi ,Ge

CompoundIII-V

IV-IV SiC, SiGe

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Period Column II III IV V VI

2Be鈹

Beryllium

B硼Boron

C碳Carbon

N氮Nitrogen

O氧Oxygen

3Mg鎂

Magnesium

Al鋁Aluminum

Si矽Silicon

P磷Phosphorus

S硫Sulfur

4Zn鋅Zinc

Ga鎵Gallium

Ge鍺Germanium

As砷Arsenic

Se硒Selenium

5Cd鎘

Cadmium

In銦Indium

Sn錫Tin

Sb銻Antimony

Te碲Tellurium

6Hg汞

Mercury

Tl鉈Thallium

Pb鉛Lead

二元化合物 Binary : GaAs, InP, GaP,GaN, etc.

三元化合物 Ternary : InGaAs, InGaP, AlGaAs, etc.

四元化合物 Quaternary : AlGaInP, InGaAsP, etc.

五元化合物 Pentanary : AlGaInAsN, etc.

CompoundII-VI ZnSe, ZnS, CdS, etc.

AsH : Arsine

化學反應式：

主要原物料:

MO Source + Hydride + Carrier Gas：H2

Chemical Reaction During Epitaxy

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TMAl Tri - Methyl - Aluminum ( CH3 )3Al

三 甲基 鋁

Al

CH3

CH3CH3

TEAl : Tri-ethyl-Aluminum ( C2H5 )3Al

TMGa : Tri-Methyl-Gallium ( CH3 )3 Ga

TMIn : Tri-Methyl-Indium ( CH3 )3In

DETe : Di-ethyl-Tellurium ( C2H5 )2Te

DEZn : Di-ethyl-Zinc ( C2H5 )2Zn

CP2Mg : Bis (cyclo-penta-dienyl ) Magnesium 環戊二烯鎂

AsH3 : Arsine

PH3 : Phosphine

SiH4 : Silane

Si2H6 : Disiline

H2Se : Hydrogen Selenide

CBr4 : Carbon Tetrabromide

Advantages of CompoundsemiconductorAdvantages of CompoundsemiconductorAdvantages of CompoundsemiconductorAdvantages of Compoundsemiconductor

1. High Electron Mobility高電子移動速率(5.7x higher than CM0S)

2. High Frequency Response高頻率響應3. Wide Band Width 寬幅之頻寬4. High Linearity高線性度

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4. High Linearity高線性度5. High Power高功率6. Alternative Choice of Material材料選擇多元性7. 抗輻射

適用於無線通訊 、光纖通訊、光顯示(LED)& 太陽能產業

GaAs in Wireless Communication Supply Chain

4~6 ”GaAs Substrate

Microelectronics

IC Process

GaAs Epi- Wafer

磊晶片磊晶片磊晶片磊晶片

Sumitomo, Freiberg, AXTSumitomo, Freiberg, AXTIDM:Skyworks, Qorvo,

Avago, Anadigics

IDM:Skyworks, Qorvo,

Avago, Anadigics

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Wireless Communication

MOCVD Reactor

IC Package & Testing

Substrate

Foundry:

WIN, AWSC,

GCS

Foundry:

WIN, AWSC,

GCS

Global GaAs wafer market

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Global GaAs wafer market

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Source:Yole

Global GaAs market

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GaAs with More and More Application

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•HBT

Microelectronics

•LD

Photonics

VPEC’s products

•HBT•PHEMY•BiHEMT•GaN on Sic

•LD•VCSEL•PD

RF

Source:Avago

IoT(802.11ac/802.11ax/802.11ad)

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802.11ax will greatly increase network capacity by supporting up to eightsimultaneous data streams, each delivering up to 1.2 Gbps, to connectmany more devices at greater speeds. 802.11ax portfolio includes 2.4GHzand 5GHz front-end modules (FEMs) and BAW filters.According to ABI Research, 802.11ax devices will account for 57% of Wi-Fi chipsets by 2021

Small Cell

18Source:Skyworks

According to an estimate from Small Cell Forum, small cell shipments are expected to more than double from a base of 3.8 million units in 2016 to 7.8 million units by 2020 , creating a $6 billion market segment.

According to an estimate from Small Cell Forum, small cell shipments are expected to more than double from a base of 3.8 million units in 2016 to 7.8 million units by 2020 , creating a $6 billion market segment.

iPhone XS

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Source:iFixit

iPhone XR

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Source:iFixit

iPhone XR

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Source:iFixit

iPhone X(Intel)

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iPhone X(Qualcom)

23Source:iFixit

Samsung Galaxy S9

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Source:iFixit

Samsung Galaxy Note9

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Source:iFixit

Huawei Mate20 Pro

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Source:iFixit

Apple Watch

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Source:iFixit

5G is coming

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Customers’ Design Win

5G Smart Phone Shipments

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Source: Business WireSource: Business Wire

Ericsson Mobility Report forecasts over 1 billion subscriptions by the end of 2023, accounting for 20% of mobile data traffic worldwide.

What’s new

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RF Outlook

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�Bandwidth

�Linearity

�Power management

�Bandwidth

�Linearity

�Power management

5G Brings New RF Challenges for Handsets

RF complexity

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�Power management�Power management

GaAs Provides The Key Ingredient For 5G Phones

Source:Compound Semiconductor Volume 23 lssue 8

GaN on SiC

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High tempeture High frenqurency Excellenct Heat Dissipation

PIN Diode

收光晶粒之上游材料收光晶粒之上游材料收光晶粒之上游材料收光晶粒之上游材料,可用於可用於可用於可用於PIN & APD, 具元件驗證能力具元件驗證能力具元件驗證能力具元件驗證能力

技術能力已達技術能力已達技術能力已達技術能力已達25G6.59% of revenue in 2013 18.88% of revenue in 2017Q112.49% of revenue in 2014 15.94% of revenue in 2017Q214.95% of revenue in 2015 6.9% of revenue in 2017Q317.93% of revenue in 2016 12.78% of revenue in 2017Q413.72 % of revenue in 2017 24.87% of revenue in 2018Q1

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13.72 % of revenue in 2017 24.87% of revenue in 2018Q117.78% of revenue in 2018Q218.61% of revenue in 2018Q3

Image sensor’s application: The concept of “Machine Vision”

Seeing in Low Light Conditions-Night Vision

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Penetrate Atmosphere Obscurants

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Seeing through Smoke and Fire

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Product Inspection

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FP LD & DFB LD

� 1270 nm/1310 nm/1550 nm

� FP LD 2016/11 small volume shipment

� DFB LD 2018 Q2 small volume shipment

� Upgraded products in reliability test processprocess

� Product Advantage:

Far field angle design

Increase power & yield rate

Reduce lens cost

� Improve product mix & margin

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VCSEL inside iPhoneX

the Dot projector which projects 30,000 infrared dots onto your face to map its structure.

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The Flood illuminator is used in low-light and dark environments to illuminate your face using infrared light to enable the IR camera.

VCSEL inside iPhoneX

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VCSEL inside iPhoneX

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How does a 3D laser sensor work?

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VCSEL Application

High Power940nm 3D

Sensing/808nm hairremoval and

High Speed

850nm

Datacom

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removal and other aestheticsapplications/LiDAR forAutonomousDriving/Surveillance

VCSEL

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VCSEL

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Epi Wafer Market ConsolidationEpi Wafer Market Consolidation

2010

47Source:Strategy AnalyticsSource:Strategy Analytics

2013

2017

48Source:Yole

2014-2018Q1-Q3 Financial Result

2018 Q1-Q3 % 2017 % 2016 % 2015 % 2014 %

Revenue 1,573,520 100.00% 2,137,109 100.00% 2,182,825 100.00% 2,391,899 100.00% 2,073,370 100.00%

Gross margin 591,907 37.62% 743,467 34.79% 809,059 37.06% 896,369 37.48% 720,975 34.77%

Operating Profit 367,269 23.34% 515,093 24.10% 588,072 26.94% 670,700 28.04% 524,487 25.30%Operating Profit 367,269 23.34% 515,093 24.10% 588,072 26.94% 670,700 28.04% 524,487 25.30%

Financial Income 22,855 1.45% -35,375 -1.66% -29,431 -1.35% 20,258 0.85% 40,133 1.94%

Tax 71,387 4.54% -85,366 -3.99% -91,534 -4.19% -98,301 -4.11% -96,209 -4.64%

Net income 318,737 20.26% 394,352 18.45% 467,107 21.40% 592,657 24.78% 468,411 22.59%

EPS 1.72 2.15 2.12 2.4 1.9

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2019 Outlook

� New Momentum

� IOT Application(802.11ac or 802.11ax)

� New Products in Photonics

� Healthy Portfolio

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� Healthy Portfolio

� By products(improve product mix & margin)

� By customers