Spirox Corp. — Call Transcript 2023

Dec 21, 2023

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Spirox Corporation (Stock Code :3055) 2023 Third Quarter Earnings Conference

Spokesperson Noelle Ni 21 Dec 2023

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Spirox Confidential Delivering Smarter Solutions

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Safe Harbor Notice

• This presentation contains "forward-looking statements" and based on our own information and information from other sources we believe to be reliable. Our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of risk factors which are beyond our control.

• The forward-looking statements in this presentation reflect our current expectations. About these forward-looking statements, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

• We didn’t expressed or implied any statement or promise, you should not place undue reliance on this presentation. The presentation does not constitute an offer of securities issuance.

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Agenda

• Company Profile

• Financial Review

• 2023.4Q & 2024 Outlook

• Q&A

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Spirox Group

Professional Semiconductor Equipment Provider

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Spirox Confidential Delivering Smarter Solutions

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Overview

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Hsinchu, Taiwan │ HQ

• Own Products

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• Semiconductor Equipment Distribution

• Board Repair Service

Subsidiary

Jetek Technology Corp.

Southport Corporation

• System Integration Services

• Advanced Optics Technologies

• Customized Test Solutions

Spirox Technology Shanghai

• Semiconductor Equipment Distribution

• Board Repair Service

Spirox Group

• Established in 1987

• TWSE: 3055, Listed in 2002

• Capital: 38.3M USD

• Market Cap: 154M USD (as of 2023/12/13)

• Employees: 180 (as of 2023)

• Business Coverage: Semiconductor Test/Package/Inspection Equipment

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Spirox Products

• SP2500 SoC Test System

• MA6503D Micro Inspection System

• SP3055A Non-destructive Inspection System

• SP3055S WBG Materials Inspection and Analysis System

Distribution Products

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Core Competencies

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Business Philosophy

Build a customer-oriented culture and set win-win goals with customers and partners.

Industry Experience

With over 30 years of experience in semiconductor industry, Spirox has a strong and stable customer base.

Professional Team

• Years of service:

• Education:

138 employees have a college degree or higher (77%) 40 employees have a master's degree (22%) 2 employees have a PhD (1%)

140 employees with 5Y+ 103 employees with 10Y+ 82 employees with 15Y+ 55 employees with 20Y+

R&D Capability

Test solution development and Investment on own-product

Strong FIN

Strong & health finance status

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Spirox solution can meet the demands of the front-end and back-end semiconductor manufacturing processes!

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• IC Test Solutions Wafer Chip Probing Die Saw
•
IC Advanced Package Solutions
•
Compound Semiconductor Solutions
Wafer AOI Plasma Clean Flip Chip Bonding
•
IC Process & Quality Assurance Solutions
•
Industry 4.0 Solutions
• Equipment Board Repair Underfill
Final Testing IC
de-void Curing
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Compound Semiconductor Solutions

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JadeSiC-NK

JadeSA-WBG

Non-Destructive Inspection System

• Advanced NLO (non-linear optics) technology

• Non-destructive inspection technology

• Killer defects (BPD, TED, TSD, MicroPipe, SF) inspection on the surface and in the substrate

• MicroArea 3D scan function available

3D Stress Inspection & Analysis System

• Wafer scan on surface and in depth for stress distribution

• Whole wafer scan at specific depth with stress mapping

• Whole wafer 3D polytype analysis

• MicroArea 3D stress mapping / polytype analysis

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Assembly and Test + Quality Assurance Solutions

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Chip Probing IC Package IC Final Testing
IC Process & Quality Assurance
ATE Handler Prober Chuck Test Interface MicroLED Inspection
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Heat Sink Automatic Debond
TCB Bonder Blade Dicing Saw Vacuum Reflow Reflow system De-void system Plasma Laminator Measurement Warpage Adjustment
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EFA PFA MA ESD Nanoprobes
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AOI(PKG) AOI(Wafer)

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Test Solution

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SOC RF / SOC IGBT / PIM / IPM
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Handler Prober Chuck Test Interface
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MicroLED Inspection System
ATE & Other Equipment
Board Repair Service
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Advanced Package Solutions

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Bonding Process
Blade Dicing Saw eWLB wafer de-bonding Vacuum Reflow Reflow system
Thermal Compression Bonding (TCB) Warpage Adjustment System
Metrology Material Automatic
De-void system Plasma Heat Sink Laminator
Multi function Bare Si Wafer Mobile Robot
measurement
system
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Process & Quality Assurance Solutions

High Reliability

Litho Etch CMP OQA Bump CP Sawn PKG

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EFA

• Front side/Back side EFA

• Static/Dyanmic EFA

• Magnetic Optical Current Imaging

PFA

•  SEM

•  FIB/Plasma FIB

•  MicroCT

MA

•  Nanometer Materials

•  SiC/GaN 3D Defect Analysis

•  Micro LED Inspection

•  Perovskite Inspection

ESD

Nanoprobes

•  HBM/CDM/TLP ESD  Can meet the demands  Lactch Up for failure analysis in  Wafer Level ESD 3 nm process

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Spirox Confidential 12

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Process & Quality Assurance Solutions

High Reliability

Litho Etch CMP OQA Bump CP Sawn

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PKG
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AOI (Wafer)

AOI (Wafer)

• Whole Wafer/Sawn Wafer  Replace QC visual inspection

•  Thin Wafer on surface defects

•  Color Camera Inspection

• Auto-storing Defects Image

• Position Coordinate Records

AOI (PKG)

• Package inspection with Auto Tape & Reel / 6S

• High Speed In Tray / Pick & Place Solution

AOI (PKG)

AOI (PKG)

• Auto-pitch adjustment of  Replace manual IQC sealing blade for efficient incoming inspection operation 

• Replace manual FT first tray

• Post-sealing inspection inspection and in-process ensures high quality service quality control (IPQC)

• Friendly user-interface

• Provide tray maps for data comparison and tracking

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Spirox Confidential 13

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Customization Test Solutions

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✓ System Flexibility: Fast function expansion Integration Friendly: One Human-Computer Interface

✓ Test Module Board Design

Develop cost-effective and precise measure module to fulfill customer demands

✓ Software Development

Customized developing environment and analysis tools for more effective engineering process

✓ Highly Customized

Close team work with customers to achieve win-win goal

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Bio-Sensor

CIS

MEMS (MIC,TPMS)

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Achievements

For over 30 years, Spirox has contributed to the success of semiconductor industries through cost reduction, improved efficiency, and offering the most advanced range of technology equipment in the field.

Spirox will continue to uphold our commitment to seek out and deliver smarter solutions that provide a competitive advantage for both our customers and partners!

12K+

Total Installed

4K+

Training Attendance

1.7K+

Customers Served

500+

Vendor Codes

Spirox always delivers smarter solutions!

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Financial Review

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Spirox Confidential Delivering Smarter Solutions

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Statements of Consolidated Income (YoY & QoQ)

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Consolidated Balance Sheet

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transferred into light assets

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Consolidated Cash Flow Highlights & Financial Ratio

held financial structure and debt solvency well

Adjusting operating performance

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2023.4Q & 2024 Outlook

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Spirox Confidential Delivering Smarter Solutions

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2023.4Q & 2024 Outlook: Semiconductor Equipment Distribution

• Due to the global downturn in the semiconductor market and the slow pace of inventory digestion, customers are cautious in terms of pulling orders and investments. The booking status is lower than expected. However, influenced by the intensified restrictions on the Chinese semiconductor market by the United States and Japan, some customers accelerated their order placement at the end of the year, leading to the continuous shipment of equipment. The revenue from semiconductor equipment distribution in 2023 is expected to decrease by approximately 16% compared to 2022.

• Rebalance product portfolio and market strategy:

Distribution: focus on low US-tech involved products and transfer to buy-and-sell mode to increase gross profit, including

• TESCAN(CZECH)：FIB SEM and Microscope

• Ｗafer Prober (KOREA)：for wafer testing

• Hamamatsu (JAPAN)： for wafer electrical failure analysis

• Toray TCB(JAPAN)：for high-level stacked package

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2023.4Q & 2024 Outlook: Spirox Own-brand Equipment

• Rebalance product portfolio and market strategy:

• Spirox Own-brand products: best way to increase gross profit rate

• 1.Expansion of product portfolio through the acquisition of Southport

  • JadeSiC-NK: Industry-first Non-Destructive SiC Defect Inspection System. It employs advanced non-linear optical technology for whole wafer scanning of SiC substrates to identifying killer defects within the substrate, and can help customers saving significant costs and increasing output. In negotiation with several customers.

  • JadeSA-WBG: 3D Stress Inspection and Analysis System for WBG Materials. It can effectively reflect the intrinsic property of WBG materials, and suitable for monitor the stress distribution and polytype uniformity of SiC substrate, homogeneous and heterogeneous epi wafer, and device process review . In negotiation with several customers.

• 2.Other Own-brand products:

  • AOI Equipment: MA6503D、TR1000、LS1000

  • ATE：SP2500

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2023.4Q & 2024 Outlook: Subsidiaries & Investment

• Jetek Technology (Taiwan):

• ⎻ Keep developing CIS and Silicon Photonics solution. Silicon Photonics solutions has shipped in 2[nd] half of 2023, and CIS solution is expected to generate revenue and profit in 2024.

• Southport Corporation:

• ⎻ Participated in Southport 's cash capital increase to complete 1st phase investment to obtain about 51% of the equity of Southport (Approximately 3.09million shares)

• ⎻ 2nd phase investment will be conducted after Southport completes the performance goals set by Spirox. Spirox is expected to obtain a total of 95% of the equity of Southport for two phase investment.

• UnionSemicon (Hefei):

• ⎻ Holding 2.04% shares (17 million shares)

• ⎻ Trading restrictions was released on 18[th] Dec 2023. Will sell our shares based on market conditions and stock prices.

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Thank You !

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Spirox Confidential Delivering Smarter Solutions