KYEC — Investor Presentation 2025

Feb 24, 2025

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Benchmark of The Testing Industry

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King Yuan Electronic Co., Ltd. 京元電子股份有限公司

[TWSE: 2449] February, 2025

• Wafer Test Service

• Assembly Service

• Burn-In Service

 IC Test Service

• Backend Support

• Turnkey Operation

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Safe Harbor Notice

• Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward - looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company most recent Annual Report on Taiwan Stock Exchange (Market Observation Post System).

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KYEC rou sna shot g p p

Overview

Manufacturing footprint in Taiwan & China

• Established In: May 1987

• Headquarters: Hsinchu, Taiwan

• TWSE Listed: 2449.TW

• Market Cap.[(1)] : NT$136,336 million

• Employees: 10,807

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Headquarters Chu-Nan fab. Tung-Luo fab. KLT & ZKT Suzhou, China

Key milestones

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Began wafer sort
service for logic Complete Chu- Complete Tong-
and memory Complete Complete Chu- Nan fab V Luo fab III
Chu-Nan fab I Nan fab III & IV
product
Began wafer
dicing service Began burn-in Complete Complete Complete Tong- Complete Tong-
services Hsinchu HQ Chu-Nan fab II Luo fab I Luo fab II
1987 1990 1993 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2022
2020 2025
Establish US Inception of Establish S’pore Establish Japan
Inception of subsidiary KLT Suzhou subsidiary subsidiary Dispose of
KYEC
entire KLT
Listed in Inception of ZKT DLT merger share
TWSE Market Suzhou
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Note: (1) As of December 31, 2024

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KYEC is the benchmark of semi testin industr g y

KYEC is uniquely positioned, locally and globally, as a pure-play testing house and aiming to take advantages of the ever-growing outsourced semi testing business.

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4,900+ sets of installed test system, including both commercial and in-house developed testers, providing testing services for various end applications

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Optimal customer structure and balanced business exposure to maintain strong margin growth during the volatile semiconductor market environment

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In-house test system developing and manufacturing capability as a core competence differentiate KYEC from its OSAT peers

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Seasoned management team with broad and deep industry experiences

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Healthy financial structure and strong EBITDA profit to support CapEx

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Corporate strategies dedicated to enhance shareholder’s interests

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IC manufacturin rocess and KYEC available services g p

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Laser Repair
Front-End Manufacturing
IC Design/ Wafer
IDM Foundry Die Wafer
CP
Bank Grinding
IDM
Gold / Solder
WL
Bump WLBI
Cycling
Dicing
Backend
- Marking/ LS Cycling Burn-In
- Tape & Reel
Customer - Dry Pack
Assembly
FT
Drop Ship
Module Test
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Note: Blue colors are KYEC available services

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Diversified roduct mix for stable lon -term rowth p , g g

 In general, test services contributed about 85% of company’s total revenue.

 Devices tested by KYEC have been widely used in various applications, including consumer, communication, automotive, data computing and industrial … etc.

• Revenue recorded in Others included sale of equipment and tooling, lease income, and miscellaneous items.

Revenue breakdown for Q4’24 and 2024

By Manufacturing Process

By Application

Exclude data of subsidiary in China

Exclude data of subsidiary in China

Q4’24

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Q4’24
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2024

2024

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KYEC services lobal to tier customers g p

 52% of global top 50 semi companies use KYEC’s test services (US$ Millions)

2023	Company	2022	2023	Change		2023	Company	2022	2023	Change
1	Intel*	58,436	49,117	(15.9%)		26	Robert Bosch*	2,926	2,962	1.2%
2	SamsungElectronics	63,823	40,942	(35.9%)		27	Rohm	3,099	2,833	(8.6%)
3	Qualcomm	34,840	29,225	(16.1%)		28	Toshiba*	2,836	2,661	(6.2%)
4	Broadcom*	23,868	25,613	7.3%		29	Qorvo	3,020	2,518	(16.6%)
5	NVIDIA*	15,331	25,053	63.4%		30	OMNIVISION*	2,356	2,436	3.4%
6	SK hynix	33,387	23,027	(31.0%)		31	ams OSRAM*	2,976	2,332	(21.6%)
7	AMD*	23,620	22,307	(5.6%)		32	HiSilicon	1,265	2,214	75.0%
8	Apple	18,108	18,052	(0.3%)		33	Yangtze Memory	2,090	2,180	4.3%
9	Infineon Technologies*	15,400	17,022	10.5%		34	Nexperia	2,270	2,096	(7.7%)
10	STMicroelectronics*	15,842	16,941	6.9%		35	Mobileye*	514	1,848	259.5%
11	Texas Instruments	18,844	16,483	(12.5%)		36	DENSO	1,655	1,847	11.6%
12	Micron Technology	26,849	16,123	(39.9%)		37	UniSoC Technologies	2,080	1,833	(11.9%)
13	MediaTek*	18,043	13,451	(25.5%)		38	Cirrus Logic*	2,015	1,790	(11.2%)
14	NXP	12,954	13,076	0.9%		39	Monolithic Power Systems	1,758	1,783	1.4%
15	AnalogDevices*	12,391	11,813	(4.7%)		40	Vishay	1,820	1,711	(6.0%)
16	Renesas Electronics*	11,372	10,436	(8.2%)		41	Socionext	1,276	1,590	24.6%
17	Sony*	9,259	10,195	10.1%		42	Mitsubishi Electric	1,507	1,491	(1.1%)
18	MicrochipTechnology*	7,774	8,335	7.2%		43	LX Semicon	1,635	1,448	(11.4%)
19	Onsemi*	7,997	7,927	(0.9%)		44	Nichia	1,597	1,435	(10.1%)
20	KIOXIA	10,006	5,842	(41.6%)		45	Diodes*	1,661	1,369	(17.6%)
21	Marvell*	5,831	5,450	(6.5%)		46	Sanechips Technology	1,373	1,368	(0.4%)
22	Western Digital	7,598	5,269	(30.7%)		47	Fuji Electric*	1,168	1,321	13.1%
23	Skyworks Solutions*	4,435	3,882	(12.5%)		48	Winbond Electronics*	1,751	1,219	(30.4%)
24	Novatek*	3,724	3,515	(5.6%)		49	Hangzhou Silan Microelectronics	1,080	1,179	9.2%
25	Realtek*	3,762	3,047	(19.0%)		50	TDK*	1,171	1,165	(0.5%)

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Note: company’s names in blue * are KYEC’s customers. AMD includes Xilinx. Source: Gartner 2024

KYEC retains flexible and cost effective test solutions

 Current semi testing service provider is demanding on flexibility, cost effective and various platform/capacity for servicing the small-volume business trend.  KYEC is standing to take advantage of this market trend for its flexible in test platform choices, capacity and in-house capability.

 KYEC currently installed 4,900+ test systems on its shop floor.

	Memory	Logic / Mixed-Signal	CIS/CCD	LCD Driver	RF / Wireless	SOC
Advantest	T5571P / T5581H / T5585 / T5588 T5371 / T5372 / T5377S T5382A / T5771 T5335 / T5365 / T5334 / T5335P	T6672 / T6673 T6575 / T6577 T6683		T6331 T6371 T6372 T6373	T2000-RF	T2000
Agilent (Verigy)	V1200 / V2000 V3000 / V4400	HP93K / HP94K / HP83K	HP93KIP / 94KIP		HP93KPSRF	HP93KPS / PS1600 HP93K-EXA
LTX- Credence	Kalos / XW Kalos II / HEX Pkalos / Pkalos II	Duo / Quartet SCX12 / ITS9KEXA / CV ITS3KEXA / ASL1K / ASL3K-MS Sapphire/D10			ASL3K-RF Fusion-CX Fusion-MX	Sapphire / D10 Fusion-MX DiamondX
Teradyne	M1 / M2	Catalyst / J750 J750EX / iFlex Ultra Flex	IP750 IP750EMP		Flex-RF Catalyst-RF Ultra Flex-RF	J750EX / J750 / J750HD / ETS-364 iFlex / Ultra Flex Catalyst / M1 / M2
Yokogawa				TS6700 ST6730
KYEC	M-series tester	E-series tester	I-series tester	D-series tester	E-series tester	E-series tester

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In-house test s stems widel use in mass roduction y y p

 In general, in-house test system provide a custom-tailored solution flexible in test configuration and programming for device used in various applications.

 In addition, KYEC designs and manufactures test tooling and probe card in-house.

Application of in-house tester

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CIS Tester
Integration Image
Process & Optical
Logic Tester
MEMS G-sensor Tester
Integration of Motion & thermal
socket
SOC solution
MEMS Microphone Tester Integration of Analog
module & RF module
Integration of
Acoustic chamber
& kit design
High Power Solution
Integration of Hi-voltage
LCD Driver Solution module & Hi-current module
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KYEC develo ed ovens for burn-in test services p

• In-house burn-in ovens provide flexibility, custom tailored test services.

• Our burn-in oven is able to offer testing under wide range of power/watts for products after one single test setup.

• Our high-power burn-in oven employs the air-cooling technologies instead of the water-cooling used in the market available ovens, providing advantages of cost saving and easy maintenance.

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Network
GPU
< 1 watt / -40 ° C communication 50 watts 300 watts 700 watts 1500 watts
10 watts
KYE601 KYE700-32 HP600-12 HP600-20
HPII600 Oven HPV600 Oven
Oven Oven Oven Oven
1996 1998 2000 2002 2006 2008 2010 2012 2014 2016 2019 2024
KYE600 KYE680 HP600-6 HP600-16 HP600-20Z HPII600-20Z
Oven Oven Oven Oven Oven Oven
Memory Logic 20 watts Automotive GPU 1000 watts
(DRAM / SRAM) (Chipset) 120 watts 500 watts
< 1 watt < 1 watt
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KYEC rovides turnke WLCSP services as well p y

KYEC’s WLCSP process flow

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Wafer incoming
inspection
Wafer Test
Wafer grinding
Laser mark
Die saw
(Laser grooving)
AOI
T & R
Waffle pack
Ship
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 In addition to wafer testing, KYEC provides wafer grinding, die sawing/laser grooving, AOI and packing services for Wafer Level Chip Scale Package (WLCSP) as well.

• WLCSP is primarily for applications as: e- compass, accelerometer, gyroscope, pressure, humidity, microphone, power management and memory products.

• WLCSP revenue in KYEC has increased significantly over last couple years. We expects this trend to continue in the future.

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KYEC group management team with deep industry experience

C.K. LEE - Chairman & CEO

• Over 30 Years of semiconductor industry experience

• Former Manager of Manufacturing, United Microelectronics Corporation

• Bachelor of Department of Shipping &Transportation Management, National Taiwan Ocean University.

Gauss CHANG - General Manager

• Over 30 Years of semiconductor industry experience

• Former Manager of foundry business, Winbond Electronics Corp.

• MBA. from Saginaw Valley State University, Michigan, USA.

Hans HAN- Vice President

• Over 30 Years of semiconductor industry experience

• Former deputy assistant vice president of Walton Advanced Engineering Inc.

• Bachelor of Department of Electrical Engineering, National Taiwan University of Science and Technology. M.Sc. from Department of Electronic and Computer Engineering, National Taiwan University of Science and Technology.

Andy LIANG - Senior VP

• Over 20 Years of semiconductor industry experience

• Former manager of equipment engineering, UTAC/Taiwan

• Bachelor of Department of Electronic Engineering, Minghsin University of Science and Technology. MBA from Minghsin University of Science and Technology.

Steven CHANG - Senior VP

• Over 20 Years of semiconductor industry experience

• Former Manager of quality assurance, Macronix International Co., LTD.

• Bachelor of Department of Electrical Engineering, Chung Yuan Christian University. M.Sc. from Graduate School of Electrical Engineering, National Central University.

Logan CHAO - VP & CFO

• Over 20 Years of semiconductor industry experience

• Former Audit manager of KPMG

• Bachelor of Department of Accounting, Chinese Culture University. EMBA of National Tsing Hua University.

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Financial highlights

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Financial Sna shot p

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(NT$ Millions) 2024 Q4’24 Q3’24
Net Revenue(exclude UTR (exclude data of subsidiary in China)
revenue of subsidiary in 26,856.0 7,296.9 7,038.7
China)
Gross Margin (%) 34.8% 34.8% 35.9%
Expenses
SG&A 2,316.1 809.7 535.9
R&D 855.5 223.4 222.8
EBITDA(exclude data of
12,594.2 3,098.6 3,331.9
subsidiary in China)
EPS – diluted (NT$) $6.32 $1.65 $2.02
EPS – basic (NT$) $6.36 $1.66 $2.03
(NT$ Millions) Revenue and Gross Margin ( [exclude data of subsidiary in China)]
10,000 60%
50%
8,000
40%
6,000
30%
4,000
20%
2,000
10%
0 0%
Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24
Revenue (NT$ Millions) 7,032 7,428 6,721 6,400 5,542 5,868 6,236 6,346 5,977 6,543 7,039 7,297
Gross Margin 35.1% 34.9% 33.1% 35.1% 32.5% 32.5% 33.7% 33.3% 33.0% 35.3% 35.9% 34.8%
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Optimal financial leverage enhances shareholder interest

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Cash Flow from Operations CapEx
(NT$ Millions) Include China Exclude China
(NT$ Millions)
16,000 14,856.9
20,000 19,030.4 18,475.5
12,000
16,000 14,260.3 10,391.6 10,416.2
12,000 7,726.3
8,000 6,578.6
5,656.8
4,806.0
8,000 5,972.2 3,776.6 4,075.6
4,335.4 4,000 3,197.7
4,000
0 0
2022 2023 2024 Q3'24 Q4'24
2022 2023 2024 Q3'24 Q4'24
Debt | Cash
Net Debt/Equity
38.7% 32.1% 33.3% 38.4% 29.8% 25.1% 24.4% 30.0% 30.4%
( 新台幣百萬元)
(NT$ Millions)
30,00025,000 26,788.6 24,530.3 21,561.9 25,194.8 23,867.8 24,515.9 22,640.6 26,354.0 26,751.2
20,000
15,000 12,816.1 12,357.8 12,262.6 14,241.2 13,046.5 13,832.8 13,602.6
9,849.0 10,876.1
10,000
5,000
0
2022/12/31 2023/3/31 2023/6/30 2023/9/30 2023/12/31 2024/3/31 2024/6/30 2024/9/30 2024/12/31
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Debt Cash

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Com an website p y

http://www.kyec.com.tw

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